RES exam question on HDB Policies: A couple who previously bought a subsidised HDB flat sell it and buy another subsidised…
A couple who previously bought a subsidised HDB flat sell it and buy another subsidised flat. They negotiate a resale price above HDB's valuation and wonder whether a resale levy applies. Which is/are correct? (i) There are never any levies or valuation considerations in HDB resale (ii) Cash-Over-Valuation (COV) is the amount the resale price exceeds the valuation, payable in cash (iii) A resale levy may apply when buying a second subsidised flat (iv) HDB resale procedures and eligibility must be complied with
- A(ii), (iii) and (iv) only
- B(i), (iii) and (iv) only
- C(i), (ii) and (iii) only
- D(i), (ii), (iii) and (iv)
Show answer & explanation
Answer
A. (ii), (iii) and (iv) only
Explanation
(ii) is correct: Cash-Over-Valuation is the amount by which the resale price exceeds HDB's valuation, and it must be paid in cash. (iii) is correct: a resale levy may apply when buying a second subsidised flat. (iv) is correct: HDB resale procedures and eligibility must be complied with. So (ii), (iii) and (iv) only.
Why the other options are wrong
- (i) is wrong: levies and valuation are very much relevant in HDB resale, so it is false to say there are never any.
Study the concept behind this question: HDB Eligibility Schemes Explained (Family, Fiancé, Single)
Practise more HDB Transactions: Sale & Rental questions
Drill the full HDB Transactions: Sale & Rental bank with instant answers and explanations — free to start, no card needed.
Related HDB Transactions: Sale & Rental questions
Get each day's lesson free — one RES topic + the trap, every day on Telegram.
Join @resprepsg →Original study material mapped to the public CEA RES syllabus. Verify any rate-based figures against current IRAS/CPF/MAS rules before relying on them.