RES exam question on Private Property Sale: validly grant the option
Mr Boon, the sole registered owner of a condominium unit, is made bankrupt in July 2026. In September a buyer offers $1.6 million, and Mr Boon asks the salesperson to prepare an option to purchase for him to sign. Who can validly grant the option?
- AMr Boon, provided his spouse countersigns the option to protect the family's interest.
- BOnly the Official Assignee, in whom Mr Boon's property vested on the bankruptcy order.
- CMr Boon himself, as bankruptcy restricts his bank accounts but not his registered property.
- DMr Boon's largest unsecured creditor, acting for all creditors who have filed proofs of debt.
Show answer & explanation
Answer
B. Only the Official Assignee, in whom Mr Boon's property vested on the bankruptcy order.
Explanation
Answer: Only the Official Assignee. Mr Boon's property, the unit included, vested in it on the bankruptcy order in July 2026.Watch out: The $1.6 million offer does not change who may sign.Rule: On a bankruptcy order the bankrupt's property vests in the Official Assignee. That is why a bankruptcy search is part of due diligence.Source: Insolvency, Restructuring and Dissolution Act 2018; RESPrep /learn/en-bloc-auction-and-the-private-sale-process; RESPrep /learn/joint-tenancy-vs-tenancy-in-common, current at 1 October 2026
Why the other options are wrong
- Mr Boon, with his spouse countersigning: Mr Boon no longer has the power to sell, and a spouse's signature adds nothing where the spouse is not an owner.
- Mr Boon, as bankruptcy affects only his accounts: His property vested in the Official Assignee, so he no longer has the power to sell the unit.
- His largest unsecured creditor: An individual creditor has no power over the bankrupt estate.
Study the concept behind this question: En Bloc, Auction & the Private Sale Process (Singapore)
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.
Try a timed set: sit a free RES mock exam, no sign-up needed. Or see the passes for the full question bank.
Related Sale of Private Properties (New, Resale & En Bloc) questions
- RES exam question on Private Property Sale: Mr Chen is buying a unit off plan in a 120-unit private condominium
- RES exam question on Private Property Sale: Mr Chua bought a condominium unit in March 2024
- RES exam question on Private Property Sale: A new condominium at Tengah Park has received its Temporary Occupation Permit, and…
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.