RES exam question on Private Property Sale: Mr Chua bought a condominium unit in March 2024
Mr Chua bought a condominium unit in March 2024. In July 2026 he grants an Option to Purchase over it to Ms Lau, who exercises on 3 August 2026, with completion fixed for 26 October 2026. Seller's Stamp Duty applies. His salesperson is asked who pays it and by when. Which is correct?
- AMr Chua pays it out of the sale proceeds at completion on 26 October
- BMs Lau pays it with her Buyer's Stamp Duty, within 14 days after she exercises
- CMr Chua and Ms Lau share it equally unless the option provides otherwise
- DMr Chua pays it, within 14 days after Ms Lau exercises the option on 3 August
Show answer & explanation
Answer
D. Mr Chua pays it, within 14 days after Ms Lau exercises the option on 3 August
Explanation
Answer: Mr Chua pays it, within 14 days after Ms Lau exercises on 3 August. SSD falls on the seller, and on a resale the clock starts at exercise.Watch out: SSD applies because he sold within three years of his March 2024 purchase: 4% in the third year for a purchase before 4 July 2025.Rule: SSD falls on the seller of residential property. Stamp duty is due within 14 days of signing in Singapore, or 30 days after receipt if signed overseas, and on a resale the clock starts at exercise of the option, not completion.Source: IRAS; RESPrep study notes (current at 1 October 2026)
Why the other options are wrong
- Seller pays from proceeds at completion on 26 October: The payer is right but the deadline is wrong. Duty is due within 14 days of exercise, long before the 26 October completion.
- Buyer pays it with her BSD: The buyer pays BSD and any ABSD, not SSD.
- Shared equally unless the option says otherwise: There is no default sharing. SSD falls on the seller alone.
Study the concept behind this question: OTP Singapore: Option to Purchase Fee, Period & Exercise
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