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RES exam question on Leasing of Private Property: Ethan do about the new occupier

MediumLeasing of Private Residential Property · Paper 2

Ethan, a salesperson, arranged a two-year tenancy of a condominium unit for three flatmates. Eight months in, one flatmate leaves, and Ethan agrees to help the tenants bring in a replacement, a work-pass holder who will live there but will not sign the tenancy. What must Ethan do about the new occupier?

  1. AObtain the tenants' signed declaration of his status and lodge it with CEA within 14 days
  2. BNothing further, since CEA's checks attach to the signing of the tenancy agreement alone
  3. CInspect his pass alone, since an occupier who signs nothing is outside the full set of checks
  4. DRepeat the checks: inspect his original pass and passport, match him face to face, and verify the pass
Show answer & explanation

Answer

D. Repeat the checks: inspect his original pass and passport, match him face to face, and verify the pass

Explanation

Answer: Repeat the checks: inspect his original pass and passport, match him and verify the pass. Ethan is facilitating the change, so this applies though he signs nothing.Watch out: That the new occupier signs nothing changes nothing about the checks.Rule: A salesperson checks every tenant and every occupier: for a foreigner, inspect and copy the original pass, cross-check it against the original passport, match the photograph face to face, and verify the pass with ICA or MOM, or FileSG for a digital Long-Term Pass. If a tenant or occupier changes during the tenancy and the salesperson agrees to facilitate it, the same steps are run on the new person.Source: CEA Practice Guidelines on Due Diligence Checks under the Women's Charter 1961 and Immigration Act 1959, in force from 24 March 2023; /learn/leasing-private-residential-property

Why the other options are wrong

  • Lodge the tenants' declaration of his status with CEA: A declaration lodged with CEA is not a step the guidelines require.
  • Nothing, as the checks attach only to signing: The duty is not confined to signing. A change the salesperson agrees to facilitate triggers the same steps.
  • Inspect his pass alone: Every occupier gets the full checks, not a pass inspection alone, whether or not he signs anything.

Study the concept behind this question: Leasing Private Residential Property (Singapore)

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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.