RES exam question on Private Property Sale: Mr Lim paid a booking fee to a licensed housing developer for a unit at a new launch…
Mr Lim paid a booking fee to a licensed housing developer for a unit at a new launch and received the prescribed option. The Sale and Purchase Agreement and title documents have not yet reached his solicitor. He asks whether his wife could exercise the option instead. Which of the following statements are correct? (i) The developer's option cannot be assigned or transferred, so his wife cannot take it over. (ii) While his option is open, the developer may grant an option on the same unit to another buyer. (iii) If he gives written notice that he will not exercise, the option stays open until the 3 weeks end. (iv) The option's 3-week validity period has not yet begun to run.
- A(i), (ii) and (iv) only
- B(iii) and (iv) only
- C(i) and (ii) only
- D(i) and (iv) only
Show answer & explanation
Answer
D. (i) and (iv) only
Explanation
Answer: (i) and (iv) only. The developer's option is personal to Mr Lim, and its 3 weeks start only once the agreement and title documents are delivered.(i) True. A developer's option is not assignable or transferable.(iv) True. The option is valid for 3 weeks from the day after the title deeds (or copies) and the execution copies of the agreement reach him or his solicitors. Neither has been delivered.Rule: A developer's option is granted when the booking fee is accepted, cannot be transferred and blocks other options on the unit. It runs 3 weeks from the day after the documents are delivered, or lapses earlier on written notice of non-exercise.Source: Housing Developers Rules r 10(1A), r 10(2), r 11(1), r 11(2) and r 11(5) (sso.agc.gov.sg, read 1 October 2026)
Why the other options are wrong
- (ii) False. The developer may not grant another option on the same unit until his has lapsed.
- (iii) False. Written notice that he will not exercise makes the option lapse as soon as the developer receives it.
Study the concept behind this question: OTP Singapore: Option to Purchase Fee, Period & Exercise
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