RES exam question on Private Property Sale: A buyer of an uncompleted unit sells it on before completing his own purchase
Case study — A buyer of an uncompleted unit sells it on before completing his own purchase. The development is not yet completed. He on-sells to a third party. Evaluate the statements: (i) This is a sub-sale of an uncompleted property (ii) The original buyer on-sells before completing his own purchase (iii) Such a disposal may attract Seller's Stamp Duty if within the holding period (iv) Sub-sales of property are not possible in Singapore Which statements are CORRECT?
- A(i), (ii), (iii) and (iv)
- B(i), (ii) and (iii) only
- C(i), (ii) and (iv) only
- D(ii), (iii) and (iv) only
Show answer & explanation
Answer
B. (i), (ii) and (iii) only
Explanation
(i) is correct: selling an uncompleted unit before the development finishes is a sub-sale. (ii) is correct: the defining feature is that the original buyer on-sells before completing his own purchase. (iii) is correct: such a disposal can attract Seller's Stamp Duty if it occurs within the holding period. So (i), (ii) and (iii) only.
Why the other options are wrong
- (iv) is wrong: sub-sales are permitted in Singapore, subject to the S&P terms and duties.
Study the concept behind this question: OTP Singapore: Option to Purchase Fee, Period & Exercise
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