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RES exam question on Ethics & Professional Conduct: In one week, salesperson Zhen is asked to hold money in four transactions

HardProfessional Practice, Ethics & Conduct · Paper 2

In one week, salesperson Zhen is asked to hold money in four transactions. Each client offers to sign a note authorising her, and she plans to bank each sum in her agency's client account within a day. In which of the following would holding the money breach regulation 7? (i) The $20,000 option fee on the sale of a factory unit in Woodlands to a local company (ii) The $4,000 security deposit on the lease of an HDB flat to a family of four (iii) The $9,000 security deposit on the lease of a private condominium unit in Novena (iv) The deposit on the sale of a condominium unit in Johor Bahru to a Singapore buyer

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

Answer

D. (i) and (ii) only

Explanation

Answer: (i) and (ii) only. Regulation 7 catches the sale of property situated in Singapore and the lease of HDB property, and client authority is no exception.(i) True. A factory unit in Singapore is 'any property', so its sale is caught.(ii) True. It is a lease of HDB property, so the second limb catches it.Watch out: The clients' signed notes of authority change nothing.Rule: A salesperson must not hold or handle money for any party in the sale or purchase of any property situated in Singapore, or the lease of HDB property.Source: Estate Agents (Estate Agency Work) Regulations 2010, reg 7(1) (current at 1 October 2026)

Why the other options are wrong

  • (iii) False. A private lease falls under neither limb, though the Code's duties still apply.
  • (iv) False. The property is not situated in Singapore, even though the buyer is.

Study the concept behind this question: CEA Code of Ethics & Professional Conduct

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