RES exam question on Private Property Sale: Harbour Point Pte Ltd is building a strata office tower and plans to sell the units…
Harbour Point Pte Ltd is building a strata office tower and plans to sell the units to the public before completion. Its sales manager, Ms Quek, sets out her understanding of the Sale of Commercial Properties Act 1979 and its Rules for the launch team. Which of the following statements are correct? (i) No unit may be sold until the building plans have been approved by the Building Authority. (ii) The developer may not take more than 10% of the price as a booking fee or other payment for the option. (iii) Each option is in the form the Rules prescribe, and the option is not assignable. (iv) A buyer may cancel within five working days of exercising, under the Act's cooling-off period.
- A(i), (ii) and (iii) only
- B(i), (ii), (iii) and (iv)
- C(ii), (iii) and (iv) only
- D(i) and (iii) only
Show answer & explanation
Answer
A. (i), (ii) and (iii) only
Explanation
Answer: (i), (ii) and (iii) only. The Act and Rules require approved plans, a 10% cap and a prescribed non-assignable option, but give no cooling-off period.(i) True. No commercial property may be sold until the Building Authority approves the building plans.(ii) True. No booking fee or other payment for the option may exceed 10% of the price.(iii) True. The option must be in the prescribed form, Form B, and is not assignable.Rule: A developer must not sell commercial property until the building plans are approved, and the option must be in the prescribed form. Option payments are capped at 10% of the price, and the option is not assignable.Source: Sale of Commercial Properties Act 1979 s 3 and s 4; Sale of Commercial Properties Rules r 3 and r 5 (sso.agc.gov.sg, read 1 October 2026)
Why the other options are wrong
- (iv) False. Neither the Act nor the Rules give a cooling-off period.
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.
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 Lim paid a booking fee to a licensed housing developer for a unit at a new launch…
- RES exam question on Private Property Sale: Crestpoint Land Pte Ltd, a licensed housing developer, is preparing newspaper and radio…
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.