RES exam question on Leasing of Private Property: An investor considering an HDB shop unit reviews how HDB commercial property differs…
An investor considering an HDB shop unit reviews how HDB commercial property differs from HDB flats. Consider: (i) HDB commercial units are sold on leasehold tenure (ii) they are not subject to the residential 5-year MOP or the resale restrictions that apply to HDB flats (iii) foreign companies are absolutely prohibited from leasing HDB commercial units under the Residential Property Act (iv) the Residential Property Act's foreign-ownership restrictions apply to HDB shops just as they do to flats. Which statements are CORRECT?
- A(i), (iii) and (iv) only
- BAll four statements
- C(iii) and (iv) only
- D(i) and (ii) only
Show answer & explanation
Answer
D. (i) and (ii) only
Explanation
(i) and (ii) are correct — HDB commercial units are leasehold and free of the residential MOP/resale restrictions.
Why the other options are wrong
- (iii) and (iv) are wrong — the Residential Property Act governs residential, not commercial, property, so foreign companies are not barred from HDB commercial units.
Study the concept behind this question: Commercial & Industrial Leasing (rent review, service charge, JTC)
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