Free RES Exam Sample Questions & Case Studies

A buyer in his 40s wants to buy a 60-year-old HDB flat with about 39 years of lease remaining, using CPF and an HDB loan. Evaluate the statements: (i) CPF usage and the loan amount can be restricted where the remaining lease is short (ii) For full CPF use, the remaining lease generally must cover the youngest buyer to a required age (iii) A shorter remaining lease can reduce the property's value and marketability (iv) The length of the remaining lease has no effect on CPF use or financing Which statements are CORRECT?

• A (i) and (iv) only
• B (ii) and (iv) only
• C (i), (ii) and (iii) only✓ correct
• D All of the above

Why: Short remaining leases restrict CPF use and loan quantum and affect value. (iv) is the trap.

A bank exercises its power of sale over a residential property after the borrower defaults. The property is sold by public auction. Which of the following statements are correct? (i) The bank may sell by public auction without a court order, provided the statutory conditions under the Conveyancing and Law of Property Act are satisfied (ii) The bank owes a duty to the mortgagor to take reasonable steps to obtain the true market value of the property at the time of sale (iii) The successful buyer takes title subject to any mortgages registered after the first mortgage being enforced (iv) Any surplus proceeds remaining after repaying the mortgage debt and sale costs must be paid to the mortgagor

• A (i) and (ii) only
• B (i), (ii) and (iv)✓ correct
• C (i), (ii), (iii) and (iv)
• D (ii) and (iv) only

Why: (i) Correct — the statutory power of sale under s.24 CLPA may be exercised without a court order once triggering conditions are met. (ii) Correct — the mortgagee must take reasonable precautions to obtain a proper price and cannot sell at an undervalue for convenience. (iii) WRONG — the buyer takes title free from the mortgage being enforced AND from all subsequent mortgages; only prior encumbrances with priority over the enforcing mortgage may survive. (iv) Correct — surplus after discharging the debt and costs goes to the mortgagor.

A property agency has a new corporate client wishing to purchase a $4.8 million commercial property. The client's beneficial owner is a citizen of Country X, which is on the FATF grey list. The purchase is to be paid entirely in cash. Consider the following: (i) The transaction amount alone (>$2m residential threshold) triggers Enhanced Due Diligence (EDD). (ii) The beneficial owner's nationality from a FATF grey-list country is an independent EDD trigger under MAS risk-based guidelines. (iii) Full cash payment for a high-value property is a red flag that may indicate money laundering. (iv) The agency may proceed with Simplified Due Diligence given the client is a registered company. Which statements are correct?

• A (i), (ii) and (iii) only
• B (i), (ii), (iii) and (iv)
• C (iii) and (iv) only
• D (ii) and (iii) only✓ correct

Why: Statement (i) INCORRECT — the $2m residential threshold (under MAS Notice on AML/CFT) does not automatically apply to commercial property; however, the transaction's value and nature still require Standard CDD at minimum. The EDD triggers here are the nationality/jurisdiction risk and the cash payment. Statement (ii) CORRECT — beneficial owners from FATF grey-list (jurisdictions under increased monitoring) are a known elevated-risk indicator requiring EDD. Statement (iii) CORRECT — full cash payment for a high-value commercial property is a classic AML red flag (no paper trail, no financing institution check). Statement (iv) INCORRECT — corporate client status does NOT permit Simplified CDD when risk indicators are present; in fact, corporate clients require identification of all Ultimate Beneficial Owners (UBOs with ≥25% interest), and a grey-list-connected UBO mandates EDD, not simplification.

A married couple jointly own a private condo. Wanting to buy a second property while minimising ABSD, they consider 'decoupling' — one spouse buys out the other's share so only one name remains on the first property, freeing the other to purchase as a (claimed) first-timer. Evaluate the statements: (i) After decoupling, the spouse who now owns no property may be assessed as a first-time buyer for ABSD on the new purchase (ii) The buy-out is itself a transfer that can attract BSD (and ABSD if the receiving spouse already owns property) (iii) Decoupling carries transaction costs (legal fees, stamp duties) that must be weighed against the ABSD saved (iv) Decoupling is a guaranteed way to avoid all stamp duties Which statements are CORRECT?

• A (i) and (iv) only
• B (i), (ii) and (iii) only✓ correct
• C (ii) and (iv) only
• D All of the above

Why: Decoupling can let the buying spouse be assessed afresh, but the buy-out transfer attracts its own duties and costs that must be weighed up. (iv) is the trap — it is not a guaranteed way to avoid all duties.

Consider the following statements about GST treatment of real estate transactions in Singapore (current GST rate: 9%): (i) The sale of a residential property is GST-exempt even when sold by a GST-registered developer or owner. (ii) A GST-registered seller of commercial property must charge GST at 9% on the sale price; a GST-registered buyer may recover this as input tax if the property is used for taxable business activities. (iii) Rental income from residential properties is GST-exempt even when received by a GST-registered landlord — no output tax is charged to the residential tenant. (iv) A developer building only residential units can claim full input tax recovery on GST paid for construction materials and professional fees because the development is a commercial enterprise. Which statements are CORRECT?

• A (i) and (ii) only
• B (i), (ii) and (iii) only✓ correct
• C (ii) and (iv) only
• D All four statements are correct

Why: Statements (i), (ii) and (iii) are all correct. Residential property sales and residential rental income are GST-exempt supplies — no GST is charged on these even when the supplier is GST-registered (this is an EXEMPTION, not zero-rating; the distinction matters for input tax recovery). Commercial property sales and rentals are standard-rated at 9% when made by GST-registered parties; a GST-registered buyer/tenant can recover the input GST if the property is used for taxable business activities. Statement (iv) is WRONG: because residential property sales are exempt supplies, a developer of purely residential units CANNOT recover the input GST paid on construction costs and professional fees attributable to those exempt supplies. Input tax credit is only available for costs attributable to taxable (standard-rated or zero-rated) supplies.

A landlord grants occupancy of a residential unit: • Exclusive possession is given for a fixed 2-year term at a rent • The document is titled a 'licence' • The landlord enters monthly without notice to inspect Which is/are correct? (i) Exclusive possession for a term at a rent points to a lease/tenancy, despite the label (ii) A tenant is entitled to quiet enjoyment of the premises (iii) Entering without notice may breach the covenant of quiet enjoyment (iv) Calling the document a 'licence' conclusively prevents it being a tenancy

• A (i), (ii) and (iii) only✓ correct
• B (i) and (iv) only
• C (ii) and (iii) only
• D All of the above

Why: Substance over form: exclusive possession for a term at a rent is a tenancy regardless of the 'licence' label, with a right to quiet enjoyment. (iv) is the trap.

A seller signs an estate agency agreement: • It is an exclusive agency for 3 months • The seller separately finds his own buyer during the period • A prescribed estate agency agreement form applies Which is/are correct? (i) Under an exclusive agency, commission may be payable to the agent even if the seller finds the buyer, depending on the terms (ii) Estate agency agreements should use the prescribed form and disclose commission terms (iii) The scope and duration of authority are governed by the agreement (iv) An exclusive agency lets the seller freely appoint multiple agencies at once for the same property

• A (i) and (iv) only
• B (ii) and (iii) only
• C (i), (ii) and (iii) only✓ correct
• D All of the above

Why: (iv) is the trap — 'exclusive' means a single appointed agency for the period; multiple concurrent agencies is an open listing.

Mary, a Singapore Citizen, and her husband collected the keys to their BTO flat in January 2022. By 2025 — three years later, with a second child on the way — they want to buy a private condominium for $1,800,000 while keeping the HDB flat to rent out for extra income. Evaluate the statements: (i) They have not met the 5-year MOP, so they generally cannot rent out the WHOLE flat yet (ii) As they would then own a second property, ABSD at the SC second-property rate (20%) applies to the condo purchase (iii) To avoid that ABSD, a married couple would generally need to sell the first home within the remission window (iv) Because Mary is a citizen, no ABSD is payable on the condo regardless of the existing flat Which statements are CORRECT?

• A (i) and (iv) only
• B (i), (ii) and (iii) only✓ correct
• C (ii) and (iv) only
• D All of the above

Why: MOP (5 yrs from key collection) isn't met at 3 years, so whole-flat rental is generally not allowed. Owning a 2nd property triggers SC 2nd-property ABSD (20%); the married-couple remission requires selling the first home within the stipulated window. (iv) is the trap — citizenship does not exempt a second-property purchase from ABSD.