Sitting the Real Estate Salesperson (RES) exam soon? This is a one-sitting, last-minute revision of Paper 2: estate agency regulation, ethics and anti-money laundering, strata management, HDB rules, stamp duties and home loans.
This is my personal revision note taken in 2026, not a replacement for your course notes. Read the bold terms first, then the tables, and keep the Quick tip lines for the night before the exam. If you have not revised land law and contracts yet, start with the Paper 1 post under the same label.
Figures were checked against CEA, HDB, IRAS, MAS and MOF sources as at November 2026. Rules change, and a few have changed this year (the 15-month HDB wait-out and en bloc thresholds), so the notes flag them.
Contents: Estate agency regulation · Ethics, AML and data protection · Strata management and en bloc · Land acquisition and foreign ownership · Marketing and special properties · HDB · Taxes and stamp duty · Loans and CPF · Numbers cheat sheet
1. Regulation of estate agency
The Estate Agents Act (EAA) applies to anyone doing estate agency work for a client. Auctions, surveys, valuations and sales assistant roles are outside it. The Council for Estate Agencies (CEA) licenses estate agents (EAs, the agencies) and registers real estate salespersons (RESs, the individual agents). The Public Register shows an agent's transactions for the past 36 months, for HDB and private residential property only. Overseas and commercial deals are not listed.
Licensing and the Key Executive Officer (KEO)
The EA must be registered with ACRA, must not hold a moneylender licence, must be fit and proper, and must carry professional indemnity insurance (PII).
The KEO needs at least 4 GCE O-level passes, a pass in the Real Estate Agency (REA) exam within 2 years, at least 3 years of experience with more than 30 transactions, and no CPF Medisave arrears.
If the KEO dies or resigns, tell CEA within 7 working days and appoint a replacement within 1 month.
A salesperson must be at least 21 years old.
Fit and proper means no disqualifying convictions, no adverse civil findings, and not an undischarged bankrupt. A false declaration is itself an offence.
Penalties to remember
| Offence | Maximum penalty |
|---|
| Acting as an estate agent without a licence | Fine up to $75,000 or up to 3 years in jail, or both |
| Acting as a salesperson without registration | Fine up to $25,000 or up to 12 months in jail, or both |
| Dual representation | Fine up to $25,000 or up to 12 months in jail, or both |
| False statement in an application to CEA | Fine up to $50,000 or up to 24 months in jail, or both |
How breaches are handled
Letter of censure (LOC): minor breaches, fine up to $5,000.
Disciplinary committee (DC): major breaches such as financial loss, wrongful gain, dishonesty, fraud or intent to mislead. Fine up to $100,000 for an RES and $200,000 for an EA.
PII pays the legal cost of a negligence claim. It does not pay your fine.
Minimum PII cover
| Agency size | Minimum indemnity limit | Sub-limit per RES | Max deductible (entity / RES) |
|---|
| Sole proprietor, no salesperson | $100,000 | $100,000 | $5,000 / $5,000 |
| 1 to 10 salespersons | $200,000 | $100,000 | $5,000 / $5,000 |
| 11 to 30 | $300,000 | $100,000 | $5,000 / $5,000 |
| 31 to 50 | $400,000 | $100,000 | $5,000 / $5,000 |
| 51 to 500 | $600,000 | $100,000 | $10,000 / $5,000 |
| More than 500 | $1,000,000 | $100,000 | $20,000 / $5,000 |
CPD: 16 hours a year
Structured learning of 12 hours (4 hours Prescribed Essentials and 8 hours Professional Competencies) plus 4 hours of self-directed learning approved by your KEO. Each part must be met on its own.
Rules in the regulations
No dual representation. You cannot act for both buyer and seller, or both landlord and tenant, on the same property. You also cannot collect commission from both sides. Collecting a management fee from the landlord while acting for the tenant needs written consent from both sides and no agency work for the landlord.
No holding of transaction monies. You may handle your commission, valuation fees, lease stamp duty, monthly rent and rental deposit only as the rules allow. Never hold option fees or sale deposits.
No use of CEA's symbols to suggest endorsement.
Estate agent card: show it, with the EA and RES names, licence number, mobile number and email.
Forms 1 to 8: prescribed agency agreements for residential property only, not commercial. Forms 1 to 4 are non-exclusive and forms 5 to 8 are exclusive, across sale, purchase, landlord and tenant.
Exclusive agreement: valid for 3 months and renewable. The agent earns commission whoever finds the buyer, and a 3-month protection period applies for buyers the exclusive agent introduced.
Disputes: the Dispute Resolution Scheme covers only salesperson or EA matters. It does not cover commission disputes, contract disagreements, compensation claims or valuation and defect issues. Mediation centres include the Consumers Association of Singapore, the Singapore Institute of Surveyors and Valuers (SISV) and the Singapore Mediation Centre. Arbitration centres include the Singapore Institute of Arbitrators and SISV.
Records: keep documents for 5 years.
Quick tip: if a question mentions two sides paying you, think dual representation first. The only exception is the written-consent management fee.
2. Ethics, money laundering and data protection
Code of Ethics and Professional Client Care (CEPCC) and Code of Practice (COPEA)
Do due diligence and comply with the law. Vet advertisements before they go out.
Send a copy of every agreement to every person who signed it.
Submit every offer, counter-offer and expression of interest to your client.
Never disclose a client's confidential information.
Tell the client in writing about a conflict of interest, for example when you co-broke with your own manager from the same EA who earns an overriding fee.
If you market your own property, you cannot co-broke with the buyer's agent for commission.
Vulnerable clients (physically, mentally or emotionally impaired, illiterate, without income or under financial pressure) need extra care and due diligence.
CEA aims to complete a violation investigation in about 2 weeks.
Anti-money laundering (AML)
Money laundering runs in three stages: placement, layering, integration.
| Law | What it covers | Penalty to know |
|---|
| CDSA | Money laundering; failure to file a Suspicious Transaction Report (STR); tipping off | Failing to file an STR: fine up to $20,000. Tipping off: fine up to $30,000 or up to 3 years in jail, or both. Laundering by a company: fine up to $1 million |
| TSOFA | Terrorism financing; duty to report | Report to the police. Check the current penalty in the Act |
If the question lists these, check dates: penalties were raised in 2019 and again by an amendment passed in April 2025.
Customer due diligence (CDD) steps
Identify and verify the customer and any beneficial owner.
Screen against UN sanctions lists. On a match: stop, report to your KEO, file an STR, and do not tip off the client.
If you cannot complete CDD, or you suspect money laundering, cease the transaction and end the business. File the STR through SONAR.
Keep records for 5 years.
CDD can be outsourced to a third party, but the RES and EA stay responsible for it.
CDD is not required for an HDB residential rental.
Personal Data Protection Act (PDPA) and Do Not Call (DNC)
Personal data is anything that identifies a person: full name, NRIC, marital status, contact details, home address, personal cheque.
You need consent, a stated purpose and a reasonable use.
PDPA does not cover publicly available data, business contact information, investigations, regulators, news outlets or debt recovery.
Do not disclose a seller's personal data during negotiation without consent.
No marketing messages to numbers on the DNC register unless the person gave clear and unambiguous consent. If someone opts out, stop within 21 calendar days.
Quick tip: "Suspect, stop, report, do not tip off" is the order for a sanctions match, and tipping off is a separate offence from failing to report.
3. Strata management and en bloc sales
The MCST and its meetings
The management corporation (MC) runs the common property. The AGM must be held every calendar year and not more than 15 months apart. Both conditions must be met.
The chairperson and secretary are responsible if the AGM is not held. Fine up to $5,000.
Interest on late contributions starts after 30 days at a rate set by the council, unless waived at the AGM.
Resolutions
| Resolution | Threshold | Typical use |
|---|
| Ordinary | Simple majority of votes | Routine decisions |
| Special | 75% of share value of valid votes cast | Amend by-laws |
| 90% resolution | 90% | Exclusive use of common property for more than 3 years; increase in gross floor area (with URA and MCST approval) |
A proposal to change the law on resolution thresholds is under consultation, so quote the thresholds in the table for the exam.
Two funds
Management fund: day-to-day and recurring costs such as security, admin, insurance, legal, cleaning and utilities, plus small items.
Sinking fund: long-term capital work such as repairs, renovation, piping and external walls, plus big-ticket upgrading.
Collective sale (en bloc)
Sale of a whole strata development with less than 100% consent under the Land Titles (Strata) Act. Consent is counted by share value and strata area, excluding accessory lots.
| Age of development | Consent needed (current rules) |
|---|
| Less than 10 years | 90% |
| 10 years or more | 80% |
Process
Form a collective sale committee (CSC), with a quorum of a majority of members. Post minutes on the notice board within 7 days and keep them up for more than 14 days.
Collect signatures. Sellers get a 5 working day cooling-off period. The committee must update owners every 4 weeks on the number and percentage signed, in 4 languages.
Find a buyer within 12 months of the first signature. A lawyer drafts the tender or auction documents. The valuation obtained at close of tender becomes the reserve price.
After a failed attempt there is a 2-year restriction period. A fresh attempt to form a CSC then needs a higher requisition (20% of share value or 25% of owners) and, during the restriction period, 50% consent on the first retry and 80% on the next.
You still pay SSD if you sell within the SSD holding period, even in an en bloc sale.
Check before you publish or sit: Parliament passed the Land Titles (Strata) (Amendment) Bill on 8 September 2026. It adds lower thresholds for older developments (70% for 40 to 59 years, 65% for 60 years and above), a 3-year restriction period and a 6-month signature window. The 90% and 80% bands for newer developments stay. Confirm the commencement date, and answer exam questions on the syllabus version.
Quick tip: For en bloc numbers, tie the percentage to the age: 90% under 10 years, 80% at 10 years or more.
4. Land acquisition, foreign buyers and the sale process
Land Acquisition Act (SLA)
The State can compulsorily acquire land for public purposes, for example to build an MRT line. Compensation is based on market value. Owners who disagree with the award can appeal.
Residential Property Act (RPA)
The Controller of Residential Property, under the Land Dealings Approval Unit (LDAU) of SLA, controls who may own restricted residential property. A foreign person can be a company too.
Foreigners need approval for landed property and vacant residential land. Strata units in condominiums are open to them. Approval is also needed for a Good Class Bungalow (GCB) or land larger than 15,000 sq ft.
Approval is at the Minister's discretion, for example for exceptional economic contribution or benefit to Singapore. Once granted it is valid for 12 months.
A foreigner can take a leasehold of up to 7 years without approval.
A foreigner who inherits restricted property without approval must dispose of it within 5 years.
A Singapore citizen who gives up citizenship, or a PR who loses PR status, must dispose of restricted property within 2 years.
Conveyancing money
Purchase monies go into the solicitor's conveyancing account or the Singapore Academy of Law's Conveyancing Money Service (CMS).
It can be used for stamp duty, financial institutions and government bodies. Withdrawals need two signatures. After completion the balance goes to the seller's solicitor.
Consumer Protection (Fair Trading) Act (CPFTA)
Protects consumers against unfair practices. It does not apply to the sale and purchase of property. A claim must be brought within 2 years. The Small Claims Tribunal handles claims up to $20,000, or $30,000 if both sides agree.
Buying a completed property
Caveat emptor means buyer beware. The type of defect decides the outcome.
| Issue | Seller's duty | Buyer's remedy |
|---|
| Patent (visible) defect | No need to disclose; buyer takes as-is | None for damages |
| Latent (hidden) defect, such as a title defect | Must disclose if known; must not misrepresent | Claim where the seller knew or misrepresented |
| Fraudulent misrepresentation (false statement, careless of truth) | Liable | Rescission and damages |
| Negligent misrepresentation (no checking) | Liable | Rescission and damages |
| Innocent misrepresentation (no intent to mislead) | Liable | Rescission |
Which agency answers which question
| Need | Check with |
|---|
| Land title, caveats, encumbrances, ownership | INLIS (SLA) |
| Transaction prices and rentals | REALIS (URA) |
| HDB quota, MOP, upgrade status | HDB |
| Annual value and property tax | IRAS |
| Is the seller bankrupt? | Insolvency Office, Ministry of Law |
Contract points
A contract needs parties, property, price and consideration. A deed is signed, sealed and delivered and needs no consideration.
The contract forms when the seller or agent receives the OTP and option fee, including by email.
Postal rule: acceptance takes effect when posted, even if delayed or lost.
During conveyancing the lawyer makes formal enquiries to government agencies. If the replies are unsatisfactory the buyer can rescind and get the full deposit back. A conditional contract that fails because of unsatisfactory statutory replies is not a breach.
Repudiation means one party no longer wants to perform: the other can rescind, forfeit the deposit and claim damages, or ask for specific performance.
Until completion the seller keeps the rent and pays the maintenance. If the buyer delays, the seller can waive interest and keep the rent as compensation. If the seller has not paid SSD, the buyer can deduct it from the price.
A letter of intent often comes with a good-faith deposit. Mark it "subject to contract" if no contract is intended.
Late completion: liquidated damages
Interest is 8% a year on the purchase price less deposit, for the days late.
LD = (price - deposit) x 8% x (days late / 365)
Example: price $3,000,000, deposit $450,000, completion 30 days late. LD = $2,550,000 × 8% × 30 / 365 = $16,767.
Quick tip: visible defect, buyer cannot claim. Hidden defect the seller knew about, buyer can.
5. Marketing, advertising and special properties
Marketing basics
4 Ps: product (including services), pricing, promotion, place (distribution or platform).
Buyer behaviour factors: cultural, social, personal, psychological.
Market segmentation: geographic, demographic, psychographic, behavioural.
| Strategy | Targets |
|---|
| Mass marketing | The whole market |
| Differentiated marketing | Several segments, each with its own offer |
| Concentrated marketing | One niche segment |
Ethical advertising
Get the client's agreement before you advertise.
No untrue claims, for example "King of Queenstown". Your name and contact details must be correct.
Remove the listing when the property is no longer available, including once the OTP is exercised.
Email marketing: show your name, registration number and EA licence number, put <ADV> in the subject line, and give an unsubscribe option. The same applies to social media and online marketing.
Spam SMS: stop within 10 business days of an unsubscribe request.
DNC rules from section 2 apply to calls and messages.
Working from home
| Scheme | Rules |
|---|
| Home Office Scheme | Administrative functions of a business, up to 2 non-resident workers. Must register with URA or HDB |
| Home-based business | Small business without approval. Run only by the owner, occupier or a tenant (with the owner's consent). No signage or posters, no disturbing neighbours |
Landed housing, GFA and dwelling units
GFA = site area × plot ratio.
Dwelling units (DU) = GFA ÷ 85 sqm (or ÷ 100 sqm in the listed areas), rounded down.
Landed housing is controlled by building envelope rules, including the Good Class Bungalow (GCB) areas.
Industrial and business park
B1: clean industry, 50 m nuisance buffer. B2: heavier industry, 100 m buffer. Predominant use 60%, ancillary 40%.
White zone uses include shops, restaurants, showrooms, offices, commercial schools and sports and recreation. B1 also allows kindergartens and childcare.
In a mixed site such as GPR 3.5 with 2.5 for industrial (B) and 1.0 for white (W), the industrial 2.5 is built first before the white 1.0 can be used.
Business park: 85% business use, 15% white. For a business park that is white, the split is 60 and 40.
Land lease: government industrial leases are 60 years and JTC leases are 30 years.
Triple net (NNN) lease: the tenant pays base rent plus insurance, maintenance and property tax.
Conservation
Three principles: retention (keep original elements), restoration (return to original design or material) and repair (use an appropriate method). Traditional signs cannot be removed. Contemporary signs need BCA approval. Signboards must not exceed 15 m or 3 storeys in height and must cover no more than 15% or 15 sq m.
Buying new: BUC and developers
A developer selling 5 or more units in a building under construction (BUC) must comply with the Housing Developers (Control and Licensing) Act. Licences are either sale (may sell during construction) or no sale (may not).
Licence checks include track record, planning approval, land ownership or power of attorney, a project account and audited accounts.
TOP (Temporary Occupation Permit) means lawful occupation, though some non-critical items such as signage and landscaping may be outstanding. CSC (Certificate of Statutory Completion) means the project is complete with full statutory compliance.
Vacant possession is due by the TOP or CSC date in the S&P. Late delivery lets the buyer claim liquidated damages. The defect liability period after TOP is 12 months.
Strata area definitions were updated in 2023: void areas and non-sellable air-con ledges are excluded.
Share value is 5 for units up to 50 sqm, plus 1 for each extra 50 sqm. A 250 sqm unit gets 9.
Foreign developers
A Singapore company applies for a clearance certificate. A foreign company needs a qualifying certificate (QC): build and get TOP or CSC within 5 years, sell all units within 2 years. If not, the 10% bank guarantee can be forfeited. The sale deadline can be extended with an extension charge of 8%, 16% and 24% of the land price in years 1, 2 and 3, pro-rated for unsold units. There is no pro-rated extension for the construction deadline.
Quick tip: a unit of 250 sqm: 5 + 1 + 1 + 1 + 1 = 9 share value.
6. HDB flats
Flat types and the minimum occupation period (MOP)
MOP: 5 years for standard flats and 10 years for Plus and Prime flats. For an Executive Condominium (EC) the MOP is 5 years for citizens and PRs and 10 years for foreigners and companies. EC income ceiling is $16,000.
During MOP the flat can be repossessed for breach, and you cannot create a trust over it, use it as collateral or sell it. Subsidy recovery applies to Plus and Prime flats.
Community Care Apartment: for ages 65 and above, with a lease of 15 to 35 years in 5-year steps.
2-room Flexi: for singles aged 35 and above or couples, with a shorter lease option.
HDB Flat Eligibility (HFE) letter is needed before you buy a resale flat.
Wait-out periods
These moderate demand and keep public housing for those who need it.
| Buyer | Wait-out |
|---|
| Private property owner or ex-owner buying a subsidised flat (BTO, resale with CPF grants), or an EC from a developer | 30 months |
| Same buyer using an HDB loan | 30 months |
| Private property owner buying a non-subsidised resale flat, no HDB loan and no grant | None since 28 July 2026 (the old 15 months was removed) |
Down payment and loans
HDB loan: borrow up to 80% of price or valuation, so the down payment is 20% (cash or CPF).
Bank loan: borrow up to 75%, so the down payment is 25% and at least 5% must be cash.
Cash over valuation (COV) must be paid in cash. Stamp duty and legal fees can be paid in cash or CPF.
Income ceiling for BTO is $14,000 for families and $21,000 for extended families.
CPF housing grants (resale)
| Grant | Who | Amount |
|---|
| Family Grant | First-timer families | Up to $80,000 for 4-room or smaller, $50,000 for 5-room or bigger |
| Enhanced CPF Housing Grant (EHG) | First-timers, household income up to $9,000 | Up to $120,000, tiered by income (singles get half) |
| Step-Up CPF Housing Grant | Second-timers moving from a rental or 2-room flat | $15,000 |
| Proximity Housing Grant (PHG) | Resale flat, living with or near parents or children | $30,000 to live with, $20,000 to live within 4 km |
EHG by monthly household income (families)
| Income | EHG | Income | EHG |
|---|
| Up to $1,500 | $120,000 | $5,501 to $6,000 | $50,000 |
| $1,501 to $2,000 | $110,000 | $6,001 to $6,500 | $40,000 |
| $2,001 to $2,500 | $105,000 | $6,501 to $7,000 | $30,000 |
| $2,501 to $3,000 | $95,000 | $7,001 to $7,500 | $25,000 |
| $3,001 to $3,500 | $90,000 | $7,501 to $8,000 | $20,000 |
| $3,501 to $4,000 | $80,000 | $8,001 to $8,500 | $10,000 |
| $4,001 to $4,500 | $70,000 | $8,501 to $9,000 | $5,000 |
| $4,501 to $5,000 | $65,000 | Above $9,000 | $0 |
| $5,001 to $5,500 | $55,000 | | |
Resale levy
Charged to second-timers who bought a subsidised flat before and buy another subsidised flat. Paid in cash only, no CPF or loan.
| First subsidised flat | Family | Single |
|---|
| 2-room or 2-room Flexi | $15,000 | $7,500 |
| 3-room | $30,000 | $15,000 |
| 4-room | $40,000 | $20,000 |
| 5-room | $45,000 | $22,500 |
| 3Gen | $45,000 | Not applicable |
| Executive | $50,000 | $25,000 |
| Executive Condominium | $55,000 | $27,500 |
Selling a resale flat
Seller files an intent to sell, then grants the OTP within 7 days.
An extension of stay after completion is allowed for up to 3 months.
The enhanced contra facility lets a seller use sale proceeds to pay for the next flat. No financial institution financing is allowed in that arrangement.
Support for seniors and estate upgrading
Silver Housing Bonus: older owners who right-size top up their Retirement Account (55 and above).
Lease Buyback Scheme: owners aged 65 and above sell part of the lease back to HDB. They cannot rent out or sell on the open market.
Home Improvement Programme (HIP) proceeds only with 75% of owners in favour. EASE is for improvements for active seniors.
Renting out an HDB flat
| Rule | Detail |
|---|
| Minimum rental | 6 months per application |
| Maximum rental | 3 years if all tenants are citizens or Malaysians, 2 years if any tenant is a non-Malaysian non-citizen (PRs and foreigners) |
| Non-citizen quota | 8% at neighbourhood and 11% at block level, for whole-flat rentals to non-Malaysian non-citizens |
| Passes | Employment, S Pass, student and dependant passes must have at least 6 months validity |
| Work permits | Malaysians can rent any. Non-Malaysian construction, manufacturing and process sector workers can rent rooms only, not a whole flat |
| 1-room and 2-room | Cannot rent out the whole flat or rooms |
| 3-room | Rooms up to 1; occupancy cap 6 |
| 4-room and bigger | Rooms up to 2; occupancy cap 6, temporarily raised to 8 from 22 January 2024 to 31 December 2026 |
The owner and any non-tenants count toward the occupancy cap. A diplomatic clause lets a foreign tenant end the tenancy after the minimum period. It is an agreed term, not compulsory.
Quick tip: "30 months" is for subsidised flats, EC from a developer and HDB loans. The 15-month rule is gone, and many exam guides still list it.
7. Property tax and stamp duties
Property tax
The owner pays property tax each year, with bills due around the end of January. It is based on annual value (AV), the estimated yearly rent the property could fetch, excluding furniture, furnishings and maintenance fees. Check AV and tax with IRAS.
Buyer's Stamp Duty (BSD)
Charged on the higher of price and market value, in bands. Due within 14 days of exercising the OTP.
| Residential band | Rate |
|---|
| First $180,000 | 1% |
| Next $180,000 | 2% |
| Next $640,000 | 3% |
| Next $500,000 | 4% |
| Next $1,500,000 | 5% |
| Above $3,000,000 | 6% |
Shortcut for a price (P) above $360,000:
| Price | BSD |
|---|
| Up to $1,000,000 | 3% × P − $5,400 |
| $1,000,001 to $1,500,000 | 4% × P − $15,400 |
| $1,500,001 to $3,000,000 | 5% × P − $30,400 |
| Above $3,000,000 | 6% × P − $60,400 |
Example: $1,200,000 gives 4% × 1,200,000 − 15,400 = $32,600.
Additional Buyer's Stamp Duty (ABSD)
Paid on the full price or value, on top of BSD, in cash. Rates in force since 27 April 2023.
| Buyer | 1st property | 2nd property | 3rd and later |
|---|
| Singapore citizen | 0% | 20% | 30% |
| Permanent resident | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entity (company, trust and so on) | 65% | 65% | 65% |
Nationals of the US, Iceland, Liechtenstein, Norway and Switzerland are treated like citizens under free trade agreements.
A citizen married to a PR or foreigner can apply for remission of ABSD on the first home, subject to conditions.
A HDB owner buying a second HDB or EC does not pay ABSD if the first flat is sold within 6 months.
A trust pays 65%, with remission possible when the beneficiaries are identifiable, alive or born, and the trust is irrevocable, not variable and not subject to conditions.
Additional Conveyance Duty (ACD) was introduced to close the loophole of buying shares in a property-holding company to avoid ABSD.
Seller's Stamp Duty (SSD)
SSD depends on property type, holding period and the date of purchase. You still pay SSD in a collective sale if you sell inside the holding period.
| Holding period | Residential (bought on or after 4 July 2025) |
|---|
| Up to 1 year | 16% |
| More than 1 and up to 2 years | 12% |
| More than 2 and up to 3 years | 8% |
| More than 3 and up to 4 years | 4% |
| More than 4 years | 0% |
Industrial property has its own, lower SSD bands over 3 years. Check IRAS for the current table.
Mortgage stamp duty
0.4% of the loan amount, capped at $500. Pay within 14 days of signing in Singapore, or within 30 days of receiving the document if signed overseas. Late payment can attract penalties up to 4 times the duty.
Rental income
Rental income is taxable. You can deduct allowable expenses such as mortgage interest and property tax. Check IRAS for the current rules, including any simplified deduction.
Quick tip: BSD is on bands and ABSD is on the whole price. A PR buying a second home at $1,200,000 pays $360,000 ABSD (30%) plus $32,600 BSD.
8. Home loans, TDSR, MSR and CPF
Loan limits
| Ratio | Limit | Applies to |
|---|
| Total Debt Servicing Ratio (TDSR) | 55% of gross monthly income | All property loans from financial institutions |
| Mortgage Servicing Ratio (MSR) | 30% of gross monthly income | HDB flats and ECs bought directly from a developer |
Max total monthly debt (TDSR) = 55% x gross monthly income
Max home loan instalment = 55% x income - other monthly debts
Max mortgage instalment (MSR) = 30% x income
Example: income $8,000 with $1,000 of other debt payments. TDSR allows $4,400 of debt in total, so the home loan instalment can be up to $3,400. MSR caps a HDB or EC instalment at $2,400.
Counting income
Variable income such as bonuses, dividends and rental income takes a 30% haircut.
Rental income needs a stamped tenancy agreement as proof.
HDB loan versus bank loan
| HDB loan | Bank loan |
|---|
| Maximum borrowing | 80% of price or valuation | 75% |
| Interest | Concessionary rate, unchanged at 2.6% a year; loan size is assessed at a 3% floor | Market rate |
| Maximum tenure | 25 years | Up to 30 years for HDB flats, subject to age limits |
| Who | Not available to two PRs buying together | Anyone who qualifies |
If you take a bank loan you cannot refinance back to an HDB loan.
Home Protection Scheme (HPS)
Mortgage insurance for CPF members who own HDB flats, until age 65 or until the loan is paid up. It does not cover private homes, ECs or HUDC flats.
Using CPF
CPF can be used for HDB flats, DBSS flats and private condominiums.
CPF cannot pay the booking fee, option fee, deposit or cash over valuation (COV). Those are cash.
BSD can be paid with CPF. ABSD is cash.
Quick tip: write the formula before the numbers. TDSR minus other debts gives the room for the new loan.
9. Numbers cheat sheet and exam-day reminders
| Topic | Number to remember |
|---|
| Unlicensed estate agent | $75,000 or 3 years |
| Unregistered salesperson / dual representation | $25,000 or 12 months |
| False statement to CEA | $50,000 or 24 months |
| LOC / DC fine | LOC up to $5,000 · DC up to $100,000 (RES), $200,000 (EA) |
| KEO | 4 O levels · 3 years and 30+ deals · replace within 1 month · notify within 7 working days |
| Salesperson age | 21 |
| CPD | 16 hours: 4 + 8 + 4 |
| Records and CDD | Keep 5 years |
| Exclusive agreement | 3 months, plus 3-month protection |
| DNC opt-out | Stop within 21 calendar days |
| Spam SMS unsubscribe | 10 business days |
| MCST AGM | Every year, no more than 15 months apart |
| Special resolution / 90% resolution | 75% / 90% (common property lease over 3 years, or GFA increase) |
| En bloc | 90% under 10 years, 80% at 10 years or more |
| En bloc process | CSC minutes 7 days, display 14 days · 5-working-day cooling-off · updates every 4 weeks · 12 months to sell |
| RPA | Approval valid 12 months · lease up to 7 years · inherit: 5 years · lose PR: 2 years · 15,000 sq ft |
| CPFTA claims | Within 2 years · Small Claims $20,000 / $30,000 |
| Share value | 5 up to 50 sqm, +1 per extra 50 sqm |
| QC | Build 5 years · sell 2 years · 8% / 16% / 24% |
| HDB MOP | 5 years (standard) · 10 years (Plus, Prime) |
| HDB wait-out | 30 months for subsidised, EC from developer, HDB loan · 15 months removed |
| HDB loan LTV / bank LTV | 80% / 75% |
| HDB rent | Min 6 months · max 3 years (2 with non-Malaysian non-citizen) · quota 8% / 11% |
| HDB occupancy | 1 and 2-room: 4 · 3-room: 6 · 4-room and above: 8 until 31 Dec 2026 |
| PHG | $30,000 live with · $20,000 within 4 km |
| EHG | Up to $120,000, income ceiling $9,000 |
| Mortgage stamp duty | 0.4%, cap $500 |
| BSD top rate | 6% above $3,000,000 |
| ABSD citizen / PR / foreigner / entity | 0-20-30 / 5-30-35 / 60 / 65 |
| SSD residential | 16 / 12 / 8 / 4% |
| TDSR / MSR | 55% / 30% |
| Income haircut | 30% on variable and rental income |
| LD interest | 8% a year on price minus deposit |
Before you walk into the exam
Read who the buyer is (citizen, PR, foreigner, company) before you pick an answer. ABSD, RPA and HDB rules turn on it.
Match the period in the question to the right rule: 7 days, 14 days, 12 months, 30 months, 3 years.
When two answers look right, pick the one that protects the client and the public.
Cash only items: ABSD, COV, option fee, resale levy.
Where your course notes and this post disagree, check the date. Several rules changed in 2025 and 2026.
After the exam: what is one hour of your time worth?
Passing the RES exam gets you the licence. It does not tell you how to run a commission-only income, where one slow month can follow one great month. In that kind of work your hours are your stock, and every purchase, side errand and "quick favour" spends some of them.
That is the idea behind my book, 《你的一小时，值多少？》 (How Much Is Your Hour Worth?). It starts with one question to ask before you buy anything: how many hours of my life does this cost?
Why a property agent should read it
Lumpy income needs a simple spending test. The book's "when you want to buy something" flowchart takes you to one of four answers, the 4D framework: Do, Delay, Downgrade, Ditch. It takes a minute and works on a phone, a car, a watch or a new CRM.
It prices your time. Once you know what an hour of your work is worth, you can decide which leads, viewings and favours deserve one.
It is personal, not preachy. Part autobiography (my grandmother, my mother and me), part the method I use myself.
Short and practical. Made for people who study at night, work weekends and have no patience for a lecture.
Get it
If you are reading this at 11pm the night before Paper 2, finish the cheat sheet first. The book can wait until you pass. Read paper 1 notes here.
This post is a study aid based on course notes and official sources as at November 2026. It is not legal, tax or financial advice, and rules change. Check the latest rules with CEA, HDB, IRAS, MAS and SLA before relying on any figure. Let me know if i should remove any materials.
