🏗️ Sale of Uncompleted, Completed and Collective-Sale Private Properties

1. Kenneth owns a residential plot and plans to build four terrace houses on it and sell all of them before completion. His friend Siti plans a similar project of six semi-detached houses. Under the Housing Developers (Control and Licensing) Act 1965 (HDCLA), who needs a housing developer's licence?

1. Kenneth only, as he intends to sell before completion
2. Both of them, as any sale of an uncompleted home is licensed
3. Neither of them, as landed houses fall outside the Act
4. Siti only, as her project exceeds four units of housing

'Housing development' is the business of developing (or financing) more than 4 units of housing accommodation, and s.4(1) allows only a licensed housing developer to carry it out. Four houses do not cross the threshold; six do. Landed houses are 'housing accommodation' too, so the Act is not limited to condominiums (HDCLA 1965, s.2 definition of 'housing development' and s.4(1)).

2. Which authority grants the licence that a housing developer must hold before carrying out housing development in Singapore?

1. The Controller of Housing, under s.4 of the HDCLA 1965
2. The Council for Estate Agencies, under the EAA 2010
3. The Commissioner of Buildings, under the B(SM)A 2004
4. The Registrar of Titles, under the Land Titles Act 1993

Section 4(1) requires a written licence from the Controller, and s.2 defines the Controller as the Controller of Housing appointed under s.3. The CEA licenses estate agents, not developers; the Commissioner of Buildings and the Registrar of Titles have no licensing role here (HDCLA 1965, ss.2, 3 and 4).

3. A licensed bank lends S$80 million to a company to finance a 120-unit condominium project and plays no other part in it. How is the bank treated under the HDCLA 1965?

1. It is not a housing developer, as it only lends money for the project
2. It must hold a licence, as it provides money for more than 4 units
3. It must hold a no-sale licence, as it will not sell any of the units
4. It is a joint housing developer together with the borrowing company

Providing money for developing more than 4 units is normally 'housing development', but the definition of 'housing developer' excludes a bank licensed by MAS (or a licensed insurer) so long as it only lends or provides money for housing development. The borrowing company is the developer that needs the licence (HDCLA 1965, s.2).

4. What is the key difference between a housing developer's sale licence and a no-sale licence?

1. A no-sale licence restricts sales to Singapore Citizens and SPRs
2. A sale licence is needed for landed homes but not for any strata units
3. A no-sale licence allows sales once the foundation works are finished
4. A sale licence allows units to be sold before the project is completed

The syllabus contrasts the two licences: a developer with a sale licence may sell units before completion, under the Housing Developers Rules (standard OTP and S&P, progressive payments, Project Account); a developer with a no-sale licence may not sell before completion. This is why s.9(10)(a) exempts from the Project Account a project whose units will not be offered for sale before completion (HDCLA 1965, s.9(10)(a); syllabus LO 4.1.1).

5. Mr and Mrs Pillai have paid 30% of the price of an uncompleted condominium unit into the developer's Project Account. Before TOP, the licensed housing developer, a company, goes into compulsory liquidation. What is the status of the money in the Project Account?

1. It is part of the developer's assets and is shared among unsecured creditors
2. It must be refunded at once to each buyer in proportion to the sums each paid
3. It is not the developer's property and is applied for the authorised purposes
4. It is frozen by the CEA until the Pillais obtain a court order for its refund

Moneys in a Project Account are deemed not to form part of the developer's property if it goes into liquidation; they vest in the liquidator to be applied only for the purposes authorised by the rules (essentially completing the project). Only what remains after all obligations to purchasers are met is treated as the developer's money (HDCLA 1965, s.9(5)-(6)).

6. According to CEA Practice Circular PC 02-14, which information must a developer of a new strata-titled private housing project give to intending purchasers under the Housing Developers Rules?

1. Drawn-to-scale plans and a breakdown of the unit's strata floor area
2. A valuation report on the unit's market value at the booking date
3. The projected rental yield and an estimated resale price at TOP
4. A list of every unit already booked, with the buyers' names and prices

Since 18 May 2012 developers must provide mandatory information including a drawn-to-scale location plan, site plan and unit floor plan, specifications, and a breakdown of the strata floor area by space. Purchasers' particulars are confidential under the Act, and valuations or yield projections are not part of the mandatory information (CEA PC 02-14, paras 7-8; HDCLA 1965, s.11(4)).

7. Maple Crest Homes Pte Ltd builds 12 terrace houses and sells them before completion without ever obtaining a housing developer's licence. What penalty does s.4(8) of the HDCLA 1965 provide on conviction?

1. A fine up to S$50,000 or jail up to 1 year, or both
2. A fine up to S$10,000 or jail up to 12 months, or both
3. A fine up to S$100,000 and also jail of up to 5 years
4. A fine up to S$100,000 or jail up to 3 years, or both

Carrying out housing development without a licence is an offence under s.4(8): a fine not exceeding $100,000, and liability also to imprisonment for up to 5 years. Up to $100,000 or 3 years (or both) is the penalty for breaching a licence condition (s.4(9)); up to $50,000 or 1 year applies to Project Account breaches (s.9(11)); up to $10,000 or 12 months to unlawful disclosure of purchasers' particulars (s.11(5)) (HDCLA 1965).

8. A licensed housing developer will sell the units of its condominium project before completion but does not wish to keep a Project Account for it. The architect in charge certifies the total construction cost at S$85,000,000. Under s.9(10)(b) of the HDCLA 1965, what is the minimum security the developer must furnish to the Controller of Housing?

1. S$85,000,000, i.e. 100% of the certified construction cost
2. S$119,000,000, i.e. 140% of the certified construction cost
3. S$102,000,000, i.e. 120% of the certified construction cost
4. S$127,500,000, i.e. 150% of the certified construction cost

Section 9(1) requires a Project Account for each building project, but s.9(10)(b) disapplies the section where the developer furnishes security to the Controller of not less than 140% of the total cost of construction, as certified by the architect in charge: 140% x S$85,000,000 = S$119,000,000. Without that security (or a project whose units are not offered for sale before completion, s.9(10)(a)), purchase moneys must go into the Project Account (HDCLA 1965, s.9(1), (3) and (10)).

9. Your agency is asked to advertise a residential project for which the relevant authorities have not yet granted approval for sale. Which wording complies with CEA Practice Circular PC 04-13?

1. New Launch – register now for our exclusive VVIP preview
2. Sales hotline open – book a unit with your cheque today
3. Pending approval for sale – seeking indication of interest
4. Approval expected soon – early-bird prices for all units

For a project not yet approved for sale, the advertisement must state prominently that approval has yet to be obtained (e.g. 'pending approval for sale', 'seeking indication of interest') and must not look like a launch: words such as 'New Launch', 'VVIP Preview' or 'Sales Hotline' are banned, and no cheques may be collected (CEA PC 04-13, para 2(a)-(c) and (e)).

10. At a 'preview' of a project that has not yet been approved for sale, a keen buyer hands salesperson Farah a cheque to 'reserve' a unit. What should Farah do?

1. Accept it, provided it is crossed and payable to the developer
2. Accept it, provided she issues a written receipt to the buyer
3. Accept it, provided the developer refunds it if approval fails
4. Decline it, as no cheque may be collected for this project yet

Estate agents and salespersons must not collect cheques nor conduct sales for a project not yet approved for sale. The exception in reg. 7(2)(a) for delivering a crossed cheque concerns a sale that may lawfully proceed; it does not allow sales of an unapproved project (CEA PC 04-13, para 2(e); Estate Agents (Estate Agency Work) Regulations 2010, reg. 7).

11. Assume this standard progressive payment schedule for an uncompleted private home: 5% of the price on the grant of the option (booking fee), then a further 15% on signing the S&P agreement within 8 weeks of the option date. Mr Lim books a unit priced at S$1,860,000. How much will he have paid in total once he signs the S&P agreement?

1. S$372,000, i.e. 20% of the purchase price
2. S$93,000, i.e. 5% of the purchase price
3. S$279,000, i.e. 15% of the purchase price
4. S$186,000, i.e. 10% of the purchase price

5% + 15% = 20%; 20% × S$1,860,000 = S$372,000 (booking fee S$93,000 + S$279,000 on signing the S&P). The 15% is paid on top of the booking fee, not in place of it. The schedule is given in the question; it reflects the payment stages of the Housing Developers Rules referred to in HDCLA 1965, s.22(2)(c).

12. Ms Wee's uncompleted unit costs S$2,140,000. Her S&P follows this schedule: booking 5%; S&P 15%; foundation 10%; reinforced concrete framework 10%; partition walls 5%; roofing/ceiling 5%; door/window frames, wiring and plumbing 5%; car park, roads and drains 5%; TOP 25%; final 15% after TOP. How much will she have paid once the TOP instalment is paid?

1. S$1,605,000, being 75% of the purchase price
2. S$1,712,000, being 80% of the purchase price
3. S$1,819,000, being 85% of the purchase price
4. S$2,140,000, being 100% of the purchase price

5 + 15 + 10 + 10 + 5 + 5 + 5 + 5 + 25 = 85%; 85% × S$2,140,000 = S$1,819,000. The last 15% (S$321,000) is not payable until after TOP, which protects buyers until the Certificate of Statutory Completion and legal completion. Schedule as given in the question (payment stages are set by rules under HDCLA 1965, s.22(2)(c)).

13. Under Mr Rahim's S&P for an uncompleted unit priced at S$1,350,000, 25% of the price is payable on TOP and the final 15% only after TOP, at the later stages (Certificate of Statutory Completion and legal completion). He has paid every instalment due up to and including the TOP instalment and collects his keys. How much of the price is still outstanding?

1. S$202,500, payable after TOP at the final stages
2. S$337,500, payable after TOP at the final stages
3. S$540,000, payable after TOP at the final stages
4. S$135,000, payable after TOP at the final stages

Only the final 15% remains after TOP: 15% × S$1,350,000 = S$202,500. S$337,500 is the 25% TOP instalment itself, which he has just paid; S$540,000 wrongly adds the TOP instalment to the balance (40%). The figures are given in the question (rules under HDCLA 1965, s.22(2)(c)(iv) fix the share of the price not payable before the CSC).

14. A developer selling uncompleted condominium units wants to add a clause to its S&P agreement allowing it to substitute cheaper fittings without the buyer's consent. What is the position under the HDCLA framework?

1. It may add the clause, provided the buyer initials the page concerned
2. It may add the clause, provided a lawyer explains it to the buyer first
3. It must use the prescribed form; changes need the Controller's approval
4. It may add the clause, as the form is a model the parties may adapt

Rules under s.22(2)(d)-(e) prescribe the forms of contract a licensed developer must use and the conditions that are void. The standard OTP and S&P for uncompleted homes therefore cannot be varied at will; amendments need the Controller of Housing's approval (e.g. the amendments it pre-approved in 2014, PC 02-14, paras 2-3) and must be disclosed to buyers (PC 02-14, para 7). By contrast, the CEA/DPTWG templates for resale property are not mandated and may be negotiated (HDCLA 1965, s.22(2)(d)-(e)).

15. At a show flat, a buyer notices that the unit displayed has no wall between the living room and the second bedroom, although the floor plan shows one. Which statement about show units is correct under the HDCLA 1965?

1. They may differ freely if a disclaimer is shown at the show flat door
2. They are marketing props outside the Act, so the floor plan prevails
3. They are regulated so that they depict the units for sale accurately
4. They are approved one by one by the CEA before they may be displayed

Rules may regulate show units to ensure that any depiction of housing offered for sale is accurate (size, structures, finishes, fittings), and the Controller may inspect show units and direct the developer to rectify them or stop displaying them. The CEA regulates agents, not show units (HDCLA 1965, ss.22(2)(h) and 17A).

16. Ms Chua signed an S&P with a licensed developer for an uncompleted condominium unit in March 2026. In September 2027, before TOP, she sells it by sub-sale to Mr Goh. Unless their agreement provides otherwise, which statement on Seller's Stamp Duty (SSD) is correct?

1. The developer pays SSD, as it signs a fresh S&P with the sub-buyer
2. No SSD is due, as the unit was bought from a licensed developer
3. Mr Goh pays SSD, as the buyer in a sub-sale of an uncompleted unit
4. Ms Chua pays SSD, as she sells within the holding period

For residential property bought on or after 4 July 2025, SSD is payable if it is disposed of within 4 years; the acquisition date is generally the date of the S&P or accepted OTP. Ms Chua bought in March 2026 and sells about 18 months later, so SSD applies, and the seller is the party liable for it. The exemption for licensed housing developers covers the developer's own sales, not a purchaser's sub-sale (IRAS, SSD for residential property: holding period and exemptions; IRAS, Who should pay stamp duty).

17. You act for Mr Haris, who is buying an uncompleted condominium unit by sub-sale. Besides the seller's identity, which document does CEA's checklist ask you to verify before he pays for the OTP?

1. The seller's certificate of title issued by the land registry
2. The developer's audited accounts for the last three years
3. The Certificate of Statutory Completion for the project
4. The seller's own S&P with the developer and any side letters

For a sub-sale, the buyer's agent must sight the seller's S&P agreement with the developer and obtain any side letter or supplementary agreement issued by the developer, since these define what is being assigned. No certificate of title exists before completion (CEA Checklist for Buyer's Property Agent for Sub-sale of Uncompleted Private Residential Property, section A items 3 and 8).

18. Mr Tay has agreed to sell his uncompleted unit by sub-sale. According to CEA's checklist for sellers, what notification must he give, and under which provision?

1. Notify the MCST of the sale, under s.47 of the B(SM)A 2004 on information
2. Notify the Controller of Housing within 4 weeks, under s.8 of the HDCLA
3. Notify the CEA of the sub-sale price, under the Estate Agents Act 2010
4. Notify the developer of the assignment, under Rule 16 of the HD Rules

The seller must notify the developer that he intends to assign, or has assigned, his rights under the S&P with the developer, as stated in Rule 16 of the Housing Developers Rules. Section 8 HDCLA concerns the developer's own constitutional changes, not sub-sales (CEA Checklist for Sellers for Sub-sale of Uncompleted Private Residential Property, 'To further safeguard your interests', item 4).

19. Mr Leong bought an uncompleted unit from a developer for S$1,500,000 and has paid 30% of that price. He sells it by sub-sale to Ms Ho for S$1,680,000. Under her fresh S&P, the developer credits Mr Leong's payments to her and she pays the developer the rest of the original price. Ignoring stamp duties and fees, how much does Ms Ho pay Mr Leong?

1. S$1,680,000, being the full sub-sale price
2. S$630,000, being his payments plus the price gain
3. S$450,000, being the instalments he has paid
4. S$180,000, being the price gain on its own

Mr Leong has paid 30% × S$1,500,000 = S$450,000; Ms Ho still owes the developer S$1,050,000. Of her S$1,680,000 price, S$1,680,000 − S$1,050,000 = S$630,000 goes to Mr Leong (his S$450,000 plus the S$180,000 gain). Paying him the full price would make her pay the developer's balance twice (OTP template cl.12: assignment with credit of monies paid).

20. Mdm Lee's new condominium unit has received its Temporary Occupation Permit (TOP) and she has been given vacant possession, but neither the CSC nor the strata title has been issued. What is the status of her purchase?

1. She is already the registered proprietor of the unit's strata title
2. She may occupy the unit, but legal completion has not taken place
3. She may not move in until the developer obtains the project's CSC
4. She must pay the whole balance of the price before collecting keys

TOP permits lawful occupation before the Certificate of Statutory Completion (CSC); buyers take vacant possession and pay the TOP instalment, while part of the price remains payable at the later stages. Legal completion, when title passes, comes later, once the title can be transferred (syllabus LO 4.1.1: rights and duties at the OTP, S&P, TOP and legal completion stages).

21. Mr Phua's S&P for an uncompleted unit fixes delivery of vacant possession by 30 June 2027 and provides that, if delivery is late, the developer pays liquidated damages at 10% a year on the instalments paid, for each day from the day after that date up to and including the day of delivery. He has paid S$900,000, and vacant possession is delivered on 15 August 2027. What is due to him (365-day year)?

1. S$11,589.04, for 47 days of delay
2. S$11,342.47, for 46 days of delay
3. S$11,500.00, on a 360-day year basis
4. S$3,698.63, for the 15 days in August

Delay: 1 July to 15 August = 31 + 15 = 46 days. S$900,000 × 10% × 46/365 = S$11,342.47. Counting both end dates (47 days) or using a 360-day year overstates the sum; counting only August ignores July. The rate and formula are given in the question; they illustrate the remedy for failure to deliver vacant possession on time (syllabus LO 4.1.1, remedies).

22. Mr Ng's S&P for an uncompleted unit states that if the surveyed strata area differs from the contract area by more than 3%, the price is adjusted for the whole difference at the contract rate per m². The contract area is 100 m² at a price of S$1,600,000; the surveyed area is 95 m². What adjustment applies?

1. No adjustment, as 5 m² is within the tolerance allowed
2. A price reduction of S$80,000 for the 5 m² shortfall
3. A price reduction of S$48,000 for 3 m² of tolerance
4. A price reduction of S$32,000 for the 2 m² above 3%

Contract rate: S$1,600,000 ÷ 100 m² = S$16,000 per m². The shortfall is 5 m² (5%), which exceeds 3%, so the whole difference is adjusted: 5 × S$16,000 = S$80,000. Adjusting only the excess over 3% (2 m²) misreads the clause. The clause is given in the question; it illustrates the buyer's remedy for a shortfall in floor area (syllabus LO 4.1.1).

23. Six months after receiving vacant possession, Mrs Kaur finds cracks in the walls of her new unit caused by defective workmanship. Her S&P gives a defects liability period of 12 months from vacant possession. What should she do first?

1. Give the developer written notice to make good the defects at its cost
2. Ask the CEA to order the developer to repair the defects in her unit
3. Withhold all remaining instalments until the developer pays her damages
4. Accept them, since the TOP proves the building was properly completed

Within the defects liability period stated in her S&P, the developer must make good defects due to defective workmanship or materials at its own cost after written notice; if it fails to do so, the purchaser may have the work done and recover the cost. TOP does not certify the absence of defects, and the CEA does not regulate developers (syllabus LO 4.1.1, remedies: defects).

24. Under Mr Ismail's S&P for an uncompleted unit, an instalment of S$190,000 fell due on 1 March 2027. The S&P charges interest on late instalments at 10% a year, calculated daily on a 365-day year from the day after the due date up to and including the day of payment. He pays on 31 March 2027. How much interest does he owe?

1. S$1,583.33, for one month at 10% ÷ 12
2. S$1,561.64, for 30 days at 10% a year
3. S$1,613.70, for 31 days at 10% a year
4. S$19,000.00, for a full year at 10%

2 March to 31 March inclusive = 30 days late. S$190,000 × 10% × 30/365 = S$1,561.64. Counting 31 days, or charging a calendar month (S$1,583.33), does not follow the daily formula. Continued non-payment can also allow the developer to terminate under the S&P. The rate is given in the question (syllabus LO 4.1.1, remedies: failure to pay).

25. After signing her S&P, Ms Rao learns that the developer has, without her consent, removed the study room shown in the approved unit plan attached to her S&P. What remedy is she most likely to have?

1. Damages from the salesperson who sold her the unit, not the developer
2. Damages or other relief for breach of the agreed plans and specification
3. A refund of her 5% booking fee, as the S&P has already been signed by her
4. None, since developers may change layouts freely until the TOP is issued

The S&P binds the developer to build the unit according to the plans and specifications attached to it; an unauthorised alteration is a breach for which the buyer may claim damages and, if serious enough, other relief. Developers cannot vary the prescribed contract terms at will, and the CEA regulates agents, not developers (syllabus LO 4.1.1, remedies: unauthorised alteration; HDCLA 1965, s.22(2)(d)-(e)).

26. Under the Sale of Commercial Properties Act 1979 (SCPA), what must be in place before a developer may sell a strata office unit in a building that is still under construction?

1. A Temporary Occupation Permit for the whole building
2. The Certificate of Statutory Completion for the building
3. Building Authority approval of the plans for the unit
4. A housing developer's licence from the Controller

Section 3(1) SCPA prohibits the sale of any commercial property unless the plans for its construction have been approved by the Building Authority. A housing developer's licence belongs to the HDCLA regime for housing; neither the TOP nor the CSC is a precondition for a sale under the SCPA (SCPA 1979, s.3(1)).

27. Orchidvale Ventures Pte Ltd is building a 40-unit strata office complex for sale and holds no housing developer's licence. A client asks you whether it may lawfully sell the units before completion. What is the best answer?

1. Yes; the SCPA has no licence but controls plans and sale terms
2. No; any developer selling over 4 units needs an HDCLA licence
3. No; commercial developers need a no-sale licence until the CSC
4. Yes; strata office sales are unregulated and need no approval

The HDCLA licensing regime covers housing accommodation. Sales of commercial strata units fall under the SCPA, which requires no licence but controls the sale: approved building plans before any sale (s.3), an option in the prescribed form (s.4) and prescribed S&P terms (s.5). Both Acts are administered by the Controller of Housing (SCPA 1979, ss.2-5; HDCLA 1965, ss.2 and 4).

28. Which feature is common to both the HDCLA 1965 and the Sale of Commercial Properties Act 1979?

1. Both require the developer to hold a licence before any sale
2. Both are administered by the Council for Estate Agencies
3. Both use a threshold of more than four units being sold
4. Both require the OTP and S&P terms to follow prescribed forms

Under both regimes the option and the sale terms are prescribed by rules and inconsistent terms do not stand (SCPA ss.4-5; HDCLA s.22(2)(d)-(e)), and both are administered by the Controller of Housing. Only the HDCLA licenses developers and uses the 'more than 4 units' test (SCPA 1979, ss.2, 4 and 5; HDCLA 1965, ss.2, 4 and 22).

29. Under s.3 of the Sale of Commercial Properties Act 1979, which transaction is NOT treated as a 'sale' of commercial property?

1. A written agreement to sell a unit to an investor for value
2. A 5-year lease of a unit with no option to renew or purchase
3. A 5-year lease with an option for the tenant to purchase
4. A deed assigning a strata unit that is capable of registration

A lease or agreement for a lease of not more than 7 years without an option of renewal or purchase is not deemed a sale (s.3(3)). A lease carrying a purchase option, a written agreement to divest the unit for value and a registrable assignment are all 'sales' under s.3(2) (SCPA 1979, s.3(2)-(3)).

30. The S&P for a commercial strata unit contains a clause, drafted by the developer, that is inconsistent with the terms of sale prescribed by rules under the Sale of Commercial Properties Act 1979. What is the effect of the clause?

1. It prevails because both parties signed the S&P
2. It is valid unless the buyer objects in 14 days
3. It makes the whole S&P void from the beginning
4. It is void to the extent of the inconsistency

Every S&P for a commercial property must contain the prescribed terms, and any term inconsistent with them is void to the extent of the inconsistency; the rest of the agreement stands (SCPA 1979, s.5(1)-(2)).

31. Mr Seah is selling his 25-year-old landed house through salesperson Joyce. He admits that the roof leaks in heavy rain, and instructs her to tell any buyer who asks that 'the roof has never leaked'. What should Joyce do?

1. Comply, as caveat emptor puts the burden of checking on buyers
2. Comply, provided the buyers sign a waiver before viewing the house
3. Comply, as her duty of fidelity is owed to the seller, not buyers
4. Refuse, as she must not mislead buyers about a material defect

Caveat emptor means buyers must inspect, but it does not permit a salesperson to make false statements. CEA's Professional Service Manual lists water leakages and other defects among the material facts the seller's salesperson must find out and convey when asked, and the CEPCC forbids misleading conduct (PSM, para 3.8.3(d)(v); syllabus LO 4.2.1).

32. Under the general law on the sale of land, which matter must a seller disclose to the buyer even if the buyer never asks about it?

1. Every repair made to the property since he bought it years ago
2. A latent defect in his title that an inspection would not reveal
3. His reason for selling and the lowest price he would accept
4. A patent crack in a wall that any buyer could see on a viewing

Caveat emptor governs the physical state of the property: the buyer must inspect, and a patent defect visible on viewing need not be pointed out (although neither the seller nor his salesperson may conceal or misstate it, and material facts must be conveyed when asked, PSM para 3.8.3(d)). The general law does require the seller to disclose latent defects in his title, i.e. rights or restrictions affecting the title that the buyer could not discover by inspection. His motives and bottom price stay confidential (syllabus LO 4.2.1: caveat emptor and duty of disclosure regarding defects in title and physical defects).

33. Ms Yeo wants to buy a terrace house whose owner has converted the car porch into an enclosed room. As her agent, what does CEA's buyer checklist recommend before she pays for the OTP?

1. Accept the seller's verbal assurance that URA has approved the new room in writing
2. Obtain the approved plans from BCA and, if needed, a competent person's inspection
3. Ask the seller for a letter from his contractor confirming that the works are safe
4. Rely on an INLIS title search, which records all unauthorised building works

The checklist asks the buyer's agent to verify that there are no unauthorised additions and alterations, to obtain the approved plans from BCA to compare with the as-built conditions and, if required, to have a competent person (architect, engineer or building surveyor) inspect the property. A title search does not show building works (CEA Checklist for Buyer's Property Agent, Sale of Completed Private Residential Property, A6 and safeguard 2).

34. To close a deal, salesperson Rizal tells a buyer that a condominium unit is 'freehold', although it is on a 99-year lease. The buyer signs the OTP relying on this statement. Which statement is correct?

1. The buyer has no remedy at all, since a title search shows the tenure
2. It is a misrepresentation of fact that may lead to rescission or damages
3. It is a breach of a minor warranty, giving a right to nominal damages
4. It is mere sales puffery, so neither the buyer nor CEA can take action

A false statement of fact (tenure) that induces the contract is a misrepresentation; the misled party may seek rescission and/or damages, and the salesperson faces disciplinary action for misleading conduct. Puffery covers vague opinions, not verifiable facts such as tenure; the PSM requires tenure to be confirmed in writing (syllabus LO 4.2.2; PSM, para 3.8.3(c)).

35. Selling his condominium unit, Mr Low tells a buyer: 'In my view, the neighbours next door are quiet people.' In fact he has lodged several noise complaints against them with the MCST this year. The buyer relies on the remark and buys. How is the remark best treated?

1. As a misrepresentation, since he did not honestly hold that view
2. As a mere opinion, which cannot amount to a misrepresentation
3. As a statement the buyer should have checked, so he has no remedy
4. As sales puffery, because he began it with the words 'in my view'

A statement of opinion carries an implied statement of fact: that the speaker honestly holds it. Mr Low's complaints show he did not, so the remark is a false statement of fact about his state of mind that induced the purchase, and may be an actionable misrepresentation. Calling it 'my view' does not turn it into puffery, and the buyer's failure to investigate does not excuse a dishonest statement (syllabus LO 4.2.2: constitution of misrepresentation and the liabilities).