RES exam question on Private Property Sale: The Sale of Commercial Properties Act 1979 (SCPA) regulates the sale of certain…
The Sale of Commercial Properties Act 1979 (SCPA) regulates the sale of certain commercial properties by developers. Consider the following statements: (i) The SCPA applies to developers selling commercial properties (such as offices and retail units) to members of the public (ii) Unlike the Housing Developers (Control & Licensing) Act (HDCLA), the SCPA does NOT require developers to maintain a separate project account for each development (iii) Under the SCPA, developers must furnish prescribed information to prospective purchasers, including floor plans and specifications, before granting an option (iv) Commercial property purchasers benefit from a statutory 5-day cooling-off period under the SCPA, during which they may rescind the purchase Which statements are CORRECT?
- A(i), (ii) and (iii) only
- B(ii) and (iv) only
- CAll four statements are correct
- D(i) and (iii) only
Show answer & explanation
Answer
D. (i) and (iii) only
Explanation
The SCPA applies to developers selling commercial properties to the public (i — correct). It does require prescribed information disclosures to prospective buyers including floor plans and specifications (iii — correct). However, the SCPA does NOT mandate a project account for each development — this is a significant distinction from HDCLA, which expressly requires developers to maintain a statutory project account to protect purchasers' payments (ii — incorrect). There is no statutory 5-day cooling-off period for property transactions under SCPA; the 5-day cooling-off rule relates to CEA estate agency agreements, not the underlying property transaction itself (iv — incorrect).
Study the concept behind this question: Sale of Uncompleted Private Property (New Launches)
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