RES exam question on Financing: Mr Lim sells his private condominium for $1,500,000

Mr Lim sells his private condominium for $1,500,000. The outstanding mortgage balance is $700,000 and the CPF principal plus accrued interest to be refunded is $250,000. Consider these statements: (i) After discharging the mortgage and CPF refund, Mr Lim receives net cash proceeds of $550,000. (ii) If the mortgage balance plus CPF refund exceed the sale proceeds, Mr Lim must personally top up the shortfall in cash before the sale can proceed. (iii) The $250,000 CPF refund is credited to Mr Lim's CPF Ordinary Account where it continues earning CPF interest. (iv) In a genuine arm's-length market-value sale, if net proceeds are insufficient to cover all CPF withdrawals and accrued interest, CPF Board will generally allow the outstanding CPF refund shortfall to remain unpaid without requiring a cash top-up. Which statements are correct?

1. A(i), (ii), (iii) and (iv)
2. B(i), (iii) and (iv) only
3. C(ii), (iii) and (iv) only
4. D(i), (ii) and (iii) only