RES exam question on Private Property Sale: Mr Lim paid the booking fee for a new-launch unit and holds the developer's Option…
Mr Lim paid the booking fee for a new-launch unit and holds the developer's Option to Purchase in his own name. Before the S&P is signed, he asks his agent whether he can nominate his wife or transfer the option to her so that she exercises it instead. Which statement is CORRECT?
- AHe may nominate her by letter, and she then exercises the option in her own name
- BHe may transfer it if the developer agrees, paying SSD on the booking fee
- CHe cannot: a housing developer's option is not assignable or transferable
- DHe may transfer it after notifying the Controller of Housing within 14 days
Show answer & explanation
Answer
C. He cannot: a housing developer's option is not assignable or transferable
Explanation
Rule: rule 10(2) of the Housing Developers Rules states that an option granted by a housing developer shall not be assignable or transferable, and rule 10(1A) grants it to the intending purchaser when the developer accepts the booking fee. The nomination clauses seen in some resale options do not apply to a developer's option. If the couple want Mrs Lim to buy, Mr Lim can serve notice that he will not exercise (rule 11(5)) and she can book afresh, or he can sign the S&P and later assign it under rule 16. An assignment is a fresh acquisition for stamp-duty purposes. SSD is charged on disposing of residential property, not on a booking fee, and the Rules have no notify-the-Controller route. Source: sso.agc.gov.sg, Housing Developers Rules r 10 and r 11 (S 163/2012 wef 18 May 2012), current at 21 Sep 2026.
Study the concept behind this question: Sale of Uncompleted Private Property (New Launches)
Practise more Sale of Private Properties (New, Resale & En Bloc) questions
Drill the full Sale of Private Properties (New, Resale & En Bloc) bank with instant answers and explanations — free to start, no card needed.
Related Sale of Private Properties (New, Resale & En Bloc) questions
- RES exam question on Private Property Sale: Party A purchases a new-launch condominium unit from a developer for $1,500,000…
- RES exam question on Private Property Sale: Nadia buys a unit in a building under construction (BUC) from a licensed developer
- RES exam question on Private Property Sale: A new private residential condominium has just received its Temporary Occupation Permit…
Get each day's lesson free — one RES topic + the trap, every day on Telegram.
Join @resprepsg →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.