RES Exam Paper 2 Last-Minute Revision Notes (Singapore)

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

1. Identify and verify the customer and any beneficial owner.

2. Screen against UN sanctions lists. On a match: stop, report to your KEO, file an STR, and do not tip off the client.

3. If you cannot complete CDD, or you suspect money laundering, cease the transaction and end the business. File the STR through SONAR.

4. Keep records for 5 years.

5. CDD can be outsourced to a third party, but the RES and EA stay responsible for it.

6. 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

1. 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.

2. 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.

3. 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.

4. 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.

5. 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

• Planned retail price S$29.90. Pre-order price S$22.90. Paperback ships in March 2027.

• Join the pre-order waitlist and ask for the free first third at frugalman.garynbc.com.

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.

RES Exam Paper 1 Last-Minute Revision Notes (Singapore)

Sitting the Real Estate Salesperson (RES) exam soon? This is a one-sitting, last-minute revision of Paper 1 topics: land planning, land law, interests in land, trusts and succession, contract law, agency law and the property market.

This is my personal note when I studied 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.

Every figure and rule here was checked against official Singapore sources (URA, SLA, IRAS, MAS and the statutes) as of November 2026. Rules change, so always confirm against the latest source before you rely on a number in practice.

Contents: Land planning and development · Land laws · Interest in land · Trusts, succession and co-ownership · Contract law · Agency law · Property market and financing · Numbers cheat sheet

1. Land planning and development

Plans and who does what

• Long Term Plan: looks about 50 years ahead, reviewed every 10 years.

• Master Plan: looks 10 to 15 years ahead, reviewed every 5 years. URA prepares both under the Planning Act.

• Development Control Plan (DCP): the statutory detail on setbacks, building coverage, intensity and height.

• Special and Detailed Control Plans (SDCP): guidelines from different authorities that support the Master Plan, covering parks and water bodies, envelope control, building height, conservation areas and landed housing areas.

• Government Land Sales (GLS): SLA manages the sale of State land and issues land titles and lease administration for sites sold. SLA can appoint URA, HDB or JTC to sell State land through tender or auction.

Quick tip: open URA's online Master Plan map and look up the zoning of a few addresses you know. It is the fastest way to make "zoning" stick.

Measuring space

• GFA (gross floor area) = gross plot ratio × site area. Under the harmonised rules, every agency measures floor area to the middle of the wall, all strata areas count as GFA, and voids are excluded from strata area.

• Strata area defines what you own. GFA defines how much can be built.

• Setback: the distance from the road boundary to the external wall.

• NLA (net lettable area): the usable floor space that can be leased to tenants, measured from internal surfaces and excluding shared areas.

Charges when land value goes up

• Land Betterment Charge (LBC): payable when an approval raises land value, for example a higher plot ratio, a rezoning to a higher-value use, or lifting a State title restriction. SLA issues a Liability Order and payment is due within 1 month.

• Value ladder for rezoning: Commercial > Residential > Industrial.

• Land premium: payable when renewing or extending a State lease, assessed by the Chief Valuer of SLA.

• En bloc and redevelopment make sense when plot ratio or zoning improves, not just because a building is old.

• Change of use: before you buy or lease commercial space, check that the previous use falls in the same use class. If not, apply to URA for change of use. Temporary approval does not change the permanent use.

Conservation

The guiding principle is the 3R: maximum Retention, sensitive Restoration, careful Repair. The four groups of conservation areas:

Group	Examples
Historic Districts	Boat Quay, Chinatown, Kampong Glam, Little India
Residential Historic Districts	Blair Plain, Cairnhill, Emerald Hill
Secondary Settlements	Balestier, Beach Road, Geylang, Jalan Besar, Jalan Jurong Kechil, Joo Chiat, Mount Sophia, River Valley, Tanjong Katong, Upper Circular Road, Tiong Bahru
Bungalow Areas	Good Class Bungalow Areas and Fringe (Chatsworth Park, Holland Park/Ridout Road, Nassim Road/Whitehouse Park) and Mountbatten Road

Types of residential property

Type	Minimum plot	Minimum width	Key controls
Good Class Bungalow (GCB)	1,400 sqm	18.5 m (30 m deep)	45% site coverage (35% sub-control), 2 storeys
Bungalow (detached)	400 sqm	10 m	50% site coverage (40% sub-control), 2 to 3 storeys
Semi-detached	200 sqm per unit	8 m	Envelope control
Corner terrace	200 sqm	8 m	Envelope control
Intermediate terrace	150 sqm	6 m	Envelope control

• Strata landed housing (cluster housing, townhouses) has strata title, shared facilities and monthly MCST maintenance fees. Owners do not own the land directly under their unit. A cluster development combines landed-style homes with condo facilities such as a pool, gym and security.

• Condominium vs flats: your course notes give a minimum site area of 4,000 sqm for a condominium and 1,000 sqm for flats, both with 50% maximum site coverage.

• Maximum dwelling units in non-landed projects = GFA ÷ 85 sqm, rounded down. In nine specified areas (for example Joo Chiat–Mountbatten, Telok Kurau–Jalan Eunos and Kovan–How Sun) the divisor is 100 sqm. In the Central Area, at least 20% of units must have a net internal area of 70 sqm or more.

Quick tip: landed homes are land title; condos, townhouses and cluster houses are strata title. That one line answers many multiple-choice questions.

Foreign ownership (Residential Property Act)

A "foreigner" under the Act is anyone who is not a Singapore citizen, PRs included, plus companies with foreign ownership.

• Free to buy: private apartments and condominiums. HDB flats and HDB shophouses cannot be bought.

• Restricted (SLA approval needed): vacant residential land, terrace, semi-detached and detached houses, strata landed homes outside approved condominiums (townhouses, cluster houses), landed homes at Sentosa Cove, residential shophouses, places of worship, association premises and workers' dormitories.

• Approval comes from SLA's Land Dealings Approval Unit. Applicants must show strong ties and a real economic contribution. For PRs, SLA generally looks for at least 5 years as a PR and an exceptional contribution. Each case is assessed individually.

• Conditions: owner-occupation only (no renting out, whole or part), one restricted property at a time, and a 5-year non-disposal period. Land area is capped at 15,000 sq ft on the mainland and 1,800 sqm at Sentosa Cove.

• Buying a second restricted property: allowed after the 5-year period, but the first one must be disposed of on or before legal completion of the new purchase.

• If you lose PR or citizenship: sell within 2 years. If you inherit a restricted property without approval, it must be disposed of within 5 years of the owner's death.

• Renting: foreigners may lease residential property for up to 7 years, including renewal options.

• Foreign developers need a Qualifying Certificate (QC): finish construction within 5 years, sell every unit within 2 years of TOP or CSC, and provide a banker's guarantee of at least 10% of the land price. Missing the sales deadline costs 8%, 16% and 24% of the land price for the first, second and third extension year, pro-rated on unsold units. Developers also pay ABSD of 40% on residential land, of which 35% is remittable and 5% is not. (always update)

• Shophouses and mixed-use: full commercial has no foreign restriction. In mixed-use projects, ABSD applies to the residential component. A residential shophouse is restricted and needs approval.

• Home Office Scheme: register with URA (private homes) or HDB (flats). Business activity stays inside the home and up to 2 non-resident employees, partners or directors may work there.

2. Land laws

The key Acts

Act	What it covers
Residential Property Act	Foreign ownership of residential property
State Lands Act	How the State grants land and the types of estate
Land Titles Act	Registration of title, caveats, easements, covenants
Land Titles (Strata) Act	Strata living: subdividing land, issuing strata titles and share values
Building Maintenance and Strata Management Act (BMSMA)	Maintaining common property, duties of stakeholders and by-laws

Lot numbers and titles

• Singapore's land is divided into 64 divisions: 34 Mukims (MK) and 30 Town Subdivisions (TS). You can see them on the cadastral map (INLIS or the free OneMap).

• Lot numbers 1 to 99999 are land lots. The 7xxxx series is airspace and the 8xxxx series is subterranean. U marks a strata lot and A marks an accessory lot.

Title	Used for	Owner is called
Certificate of Title (CT)	Landed property, serviced apartments, a hotel or commercial building under one owner	Proprietor
Subsidiary Strata Certificate of Title (SSCT)	Condos, apartments, ECs, cluster houses, townhouses, strata retail, office and factory units	Subsidiary proprietor
Subsidiary Certificate of Title (SCT)	HDB flats	Subsidiary proprietor

Share value and maintenance

• Share value (SV) is fixed by the Commissioner of Buildings (BCA) according to strata area and recorded in the strata roll kept by the MCST.

• Subsidiary proprietors pay into the management fund and sinking fund in proportion to share value.

• Formula: 5 SV for up to 50 sqm, then +1 SV for every further 50 sqm. A 300 sqm unit = 5 + 5 = 10 SV.

Who can hold land

• Individuals must be 21 or older. Someone aged 18 to 20 can only contract for a lease of up to 3 years.

• A private limited company or LLP can hold land. A sole proprietorship or partnership cannot, because neither is a separate legal person.

LPA vs POA

• Lasting Power of Attorney (LPA): the donor appoints one or more donees while mentally capable. It keeps working if the donor later loses mental capacity. Without one, family must apply to court for a deputy, which usually costs more.

• Power of Attorney (POA): lets someone sign documents such as an OTP or tenancy agreement for you, following your instructions. It does not cover loss of mental capacity. The donor signs in front of a solicitor, or before a notary public if overseas.

What does "owning land" include?

You own the surface plus the airspace and subterranean space reasonably necessary for the use and enjoyment of the land. For subterranean space, the State Lands Act sets this at 30 m below the Singapore Height Datum unless your title says otherwise.

Real vs personal property, fixtures and fittings

• Real property is land, buildings, trees and things attached to land. Personal property (chattels) is movable: bed, chair, TV.

• A fixture is permanently fixed (swimming pool, floor tiles) and passes to the buyer automatically. A fitting is not attached to the land (washing machine, shower head) and must be listed in the inventory to pass to the buyer.

• Two tests for a fixture: the degree of annexation (how firmly attached) and the purpose (to improve the land, or for personal or trade use).

• A trade fixture or chattel fixture (a bowling alley, for example) belongs to the tenant and can be removed without damaging the land.

Quick tip: put a final inspection clause and an inventory list in the OTP. It stops sellers taking expensive fittings and buyers throwing away items they should keep.

Mortgage, charge, caveat

• Mortgage: secures the payment of a debt and gives the lender the statutory right to foreclose.

• Charge: secures periodic payments such as rent, other than a debt.

• Caveat: a notice of claim that restricts dealings with the land (covered in the next section).

3. Interest in land: easements, covenants, licences and caveats

Legal vs equitable interest

• Legal interest: your name is on the title. It ranks ahead of an equitable interest.

• Equitable interest: a beneficial interest without being on the title, for example a beneficiary under a will, a buyer of an uncompleted unit, or a lender holding security.

• Rights of an owner: possession and enjoyment, exclusion of others, alienation (sell, gift, assign), renting out, and pledging as security. An HDB lessee needs HDB approval to sell or rent out, but can pledge the flat.

• Proprietary (legal) right: can be enforced against third parties and passes to the next owner. Personal right: a permission that only binds the person who granted it.

Estates under the State Lands Act

Fee simple · estate in perpetuity (subject to State conditions, such as the State's right to minerals) · leasehold · Temporary Occupation Licence (TOL) · Tenancy Agreement (TA).

• Reversionary interest: when land is leased, the original owner keeps the future interest (the reversion).

• Life tenant: may use the property and rent it out during their lifetime, but cannot sell, gift or will it. The grantor holds the reversion.

• Tenant: has the right to possess and exclude others only, not to sell, rent out or pledge. When a landlord sells a property with a tenant in place, he passes on the reversion and the right to collect rent for the rest of the lease.

Easements

An easement is a non-possessory right to use someone else's land, such as a right of way, and it runs with the land. The dominant tenement enjoys the benefit and the servient tenement bears the burden. Examples: right of way, light, water or electricity services, and support.

How created	Meaning
Express	In writing
Implied	By law, without a written agreement
Necessity	Landlocked land needs access
Prescription	Continuous use for 20 years

• An easement needs two owners. When one person owns both plots, the right is a quasi-easement. If he later sells one plot, an implied grant gives the buyer access (the buyer becomes dominant) and an implied reservation lets the seller keep a right of way over what he sold.

• Ways an easement ends: abandonment (non-use for more than 12 years), express release by the dominant owner, implied release (for example, the dominant owner blocks his own way), both plots coming under one owner, expiry of a fixed period (for example, a construction access), or a court order.

Covenants

• Restrictive covenant (a promise not to do something): runs with the land and can be notified on the title. Under the Land Titles Act it lasts 20 years from notification and can be extended in 10-year steps. It ends by expiry, by variation or release (agreement), or by court order.

• Positive covenant (a promise to do something, at a cost, such as painting a fence): does not run with the land. The exceptions are covenants that touch and concern the land, such as maintaining or repairing pipes, drains, fences, and retaining, party or boundary walls.

• Defective title: a title with a restrictive covenant or other encumbrance. Caveat emptor does not apply, so the seller or agent must tell the buyer.

Licences

A licence is permission and gives no interest in land. It is a personal right and cannot be assigned.

• Bare licence: a friend visiting your home; can be withdrawn at any time.

• Licence coupled with a grant: a contractor entering to carry out work.

• Contractual licence: a cinema ticket.

• Licence by estoppel: the piano example. The old owner let someone leave a piano on the property, and the new owner cannot simply demand its removal.

• TOL: a temporary licence from SLA to use State land, usually for short-term uses. Only SLA issues it, and it creates no interest in land.

• Al fresco dining: the operator has a personal right under a licence, while pedestrians exercise a right of way. The State or landlord keeps the reversion.

Caveats

A caveat is a notice that someone claims an interest in the land. It lasts 5 years unless extended.

• Who may lodge: a buyer who has exercised an option, a lender with a mortgage, CPF Board, a beneficiary, a lessee with a legal interest, the Controller of Residential Property (to stop a foreigner selling during the non-disposal period), and an MCST for outstanding maintenance.

• How it comes off: on sale, on loan redemption, when the caveator dies or goes bankrupt, by court order (for example, a caveat on the wrong unit), by withdrawal, or by lapse.

• A creditor who is owed commission can sue, but cannot caveat or place a charge on the debtor's property.

• A will alone cannot support a caveat because it is not an instrument that has taken effect.

The land registration system

• The old deeds system was replaced by the Land Titles system. A converted title may be qualified, with a caution, meaning it may still be subject to older interests. The caution lapses automatically 10 years after the title is created, and the title then becomes indefeasible.

• Torrens principles: mirror (the register shows the full and accurate facts), curtain (you need not trace the history behind the register), insurance (the State guarantees the title).

• Interests that may sit off the title: tenancies of 7 years or less, equitable interests, and beneficiaries' interests.

One-table summary

Concept	Type of right	Binds the next owner?	Registrable?
Easement (right of way)	Proprietary	Yes	Yes
Restrictive covenant	Proprietary	Yes	Yes (as a notification)
Positive covenant	Personal	No (with limited exceptions)	No
Licence	Personal	No	No
Lease of more than 7 years	Proprietary	Yes	Yes
Caveat	Protective notice	Blocks dealings	Yes (as a claim)

4. Trusts, succession, gifts and co-ownership

Trusts

The settlor (trustor) creates the trust, the trustee holds the legal interest, and the beneficiary holds the equitable interest. A beneficiary can lodge a caveat to protect that interest.

Type	How it arises
Express trust	Created by a trust deed
Resulting trust	You paid for the property but it is held in someone else's name
Constructive trust	Arises from fraud, theft, deceit or breach of trust
Unregistered trust	The seller holds the property for the buyer between exercise of the OTP and completion

• An inter vivos trust is created during life. A testamentary trust takes effect on death.

• Limits: a foreigner cannot claim a resulting trust over restricted property under the Residential Property Act, and HDB does not recognise resulting or constructive trust claims. For example, a father cannot claim his son's flat under a resulting trust when the son divorces.

Gifts

• A gift is a voluntary transfer with no money consideration. The donor must intend it and the donee must accept it. It is irrevocable, unless it was a conditional gift and the condition is not met.

• Stamp duty is still payable, based on market value.

• Bankruptcy clawback: under the Insolvency, Restructuring and Dissolution Act 2018 (IRDA), a gift or transfer at an undervalue made within 3 years before the bankruptcy application can be reversed so that assets return to creditors.

• Since 1 November 2023, private trustees in bankruptcy (PTIBs) administer bankruptcies unless the Official Assignee (OA) agrees to act. Both have the same duties.

• CPF savings are generally protected from creditors. An HDB flat is protected only if at least one co-owner is a Singapore citizen.

Succession

• Testate (with a will): a grant of probate to the named executor.

• Intestate (without a will): letters of administration to an administrator.

• A trust deed, grant of probate and letters of administration are all instruments, meaning official documents that show a claim to land and are lodged with SLA.

Muslim inheritance (AMLA)

Term	Meaning
Faraid	Islamic inheritance law, fixed shares for specific heirs. As a general rule a son receives twice the share of a daughter.
Wasiat	A will covering up to one-third of the estate, which can go to non-Faraid heirs such as non-Muslims or charities
Hibah	A gift made during the donor's lifetime; not subject to Faraid
Baitulmal	The public treasury managed by MUIS; receives the estate if a Muslim dies with no heirs

Without a will, nothing goes to a non-Muslim relative.

Co-ownership

	Joint tenancy	Tenancy in common
Shares	Equal, no separate shares	Specific shares (can be unequal)
Four unities	Possession, interest, title and time	Possession only
On death	Right of survivorship; you cannot will your share. File a notice of death.	You can will your share; file a transmission application
Selling	All owners deal together	You may sell or transfer your own share

Joint tenancy ends by transferring your share to another party (alienation), partition, bankruptcy or a court order. Transferring a share converts the joint tenancy into a tenancy in common.

5. Law of contract and the transaction process

A valid contract needs four elements

1. Offer (in property, the OTP).

2. Acceptance: must be unqualified and communicated. A conditional reply is a counter-offer, which kills the original offer.

3. Consideration: something of value given for the promise, such as the 1% option fee. Past consideration is no consideration.

4. Intention to create legal relations.

A real estate contract also needs the 4 Ps: Property address, Parties' names, Price and Provisions (terms and conditions).

• An advertisement is an invitation to treat, not an offer. It only invites negotiation.

• Subject to contract means no contract yet and no intention to be bound until a formal contract is signed.

• Stakeholder clause: a third party (for example a lawyer's conveyancing account or an escrow account) holds the money until the sale completes.

• "And/or nominee": lets the buyer name another person to exercise the OTP.

• Privity of contract: only the parties to a contract can sue each other. Privity of estate: a successor who takes over the interest, such as a buyer taking over a tenancy, can enforce it even though his name is not on the original contract.

• Condition vs warranty: breach of a condition (a major term) lets you rescind and claim damages. Breach of a warranty (a minor term) only gives damages.

• Postal rule: acceptance takes effect when posted. A revocation takes effect only when received.

Property transaction process (private resale)

1. Option fee of 1% secures the option. The seller signs and issues the OTP, usually valid for 14 days. Miss it and the fee is forfeited.

2. The buyer exercises by signing the acceptance copy and paying the 4% exercise fee (5% in total). The buyer now holds an equitable interest and can lodge a caveat; the seller holds the property on trust.

3. Stamp duty (BSD, and ABSD if it applies) is due within 14 days of exercise.

4. The seller's lawyer discharges the seller's mortgage and clears encumbrances. The buyer's lawyer obtains replies from the authorities. If the replies are unsatisfactory, the buyer may rescind.

5. A completion statement shows the sale proceeds, the balance of the price and the conveyancing fee.

6. On completion, the buyer pays the balance by cash, CPF or a new mortgage, receives the keys, and legal ownership passes.

Quick tip: the buyer's equitable interest begins when the option is exercised, not when the OTP is signed. Many exam questions hinge on that timing.

When is a contract void, voidable or unenforceable?

Situation	Effect
Illegal purpose	Void
Fundamental mistake, such as both parties being mistaken about the property	Void or voidable, depending on the type of mistake
Misrepresentation (a false statement of fact that induces the contract): innocent, negligent or fraudulent	Voidable
Fraud	Voidable, with a claim for damages
Duress (threats)	Voidable
Undue influence (pressure from a relationship of trust)	Voidable
Lack of capacity, such as mental incapacity	Can be set aside by the party lacking capacity
Unstamped S&P agreement	Valid but cannot be enforced in court until stamped

How a contract is discharged

• Performance: the contract is completed.

• Agreement: the parties mutually cancel it.

• Failure of a condition: for example, the required approval is not granted.

• Frustration: an event beyond both parties' control makes performance impossible or radically different, such as government acquisition or an act of God like an earthquake.

• Death: if the seller dies, his estate completes the sale (or the contract may be rescinded if the contract allows).

Breach and remedies

• Anticipatory (repudiatory) breach: one party announces in advance that he will not perform. Actual breach: he fails to perform on time, for example does not show up at completion.

• Minor breach: a small shortfall, such as a TV smaller than promised. Material breach: a serious difference, such as a different layout.

• Remedies: damages (liquidated = pre-agreed amount in the contract; unliquidated = set by the court), specific performance (the court orders you to do something) and an injunction (the court orders you to stop doing something).

6. Law of agency, duty of care and negligence

Your own deal: a salesperson who transacts a property for himself cannot collect commission, or co-broke commission, from any party.

How an agency relationship is created

• Express: an agreement, usually in writing.

• Ratification: the principal approves what the agent did after the fact, for example by not objecting to an appointment the agent arranged.

• Estoppel: the principal leads a third party to believe someone is his agent, and cannot later deny it.

Authority of an agent

• Actual authority, express: exactly what the agency agreement says.

• Actual authority, implied: no express instruction, so the agent uses reasonable judgment to carry out the job.

• Apparent authority: the agent has no appointment but a third party reasonably believes he does, because of what the principal said or did.

• Breach of warranty of authority: the agent acts without authority and the principal does not ratify. The agent is then personally liable to the third party.

An agent's authorised acts bind the client.

Duties

• Utmost good faith (uberrimae fidei).

• Fiduciary duty: a position of trust and confidentiality. Think for the client and act in the client's best interest.

• Duty of care: take reasonable care, and make sure the factual information you give to others, including third parties who are not your client, is accurate.

• Standard: the reasonable-person test applies to everyone, but a higher standard applies to clients who are vulnerable, illiterate or disabled and cannot make a rational decision.

Tort of negligence

Negligence needs three things: you owed a duty of care, you breached it (for example by giving false factual information), and the other party suffered damage or loss.

To decide whether a duty exists, courts use two stages: proximity (physical or legal closeness) and policy considerations (for example, the PDPA may stop you from disclosing someone's personal data).

Defences:

• Volenti non fit injuria: the claimant freely accepted the risk, as with a signed consent form for skydiving.

• Contributory negligence: the claimant's own carelessness contributed to the loss, which reduces what he can recover.

• Disclaimer: denies liability for mistakes or omissions.

• Exclusion clause: limits liability for breach of contract.

Caveat emptor and defects

• Caveat emptor (let the buyer beware): silence is not misrepresentation, but you must never mislead with wrong information.

• Patent defect: visible on inspection. Caveat emptor applies.

• Latent defect: hidden. Caveat emptor does not apply, so the duty of care applies.

• Defective title (a title with an encumbrance such as a restrictive covenant): must be disclosed.

Arm's length transaction

A fair-price deal between unrelated parties. A sale far below valuation, such as for $1, is not arm's length.

7. The property market, cooling measures and financing

How the market behaves

• Macro factors: political, social and economic.

• Demand is elastic: it reacts quickly to news and policy changes. Supply is inelastic: adding supply takes years to show up in the market.

• Property vs stock market: property has no central trading floor, information is imperfect, and the market is less competitive and less efficient. Stocks are the reverse.

• Cycle: Recovery (low prices, swinging up; a good time to enter) → Peak / expansion (population and incomes grow, buyers compete and push up prices) → Decline (high prices trigger more building, supply overtakes demand) → Recession (oversupply depresses prices).

• Primary market: a new launch bought directly from the developer. Secondary market: resale, plus sub-sales (selling a Buyer-Under-Construction unit before TOP), so the unit can be new or old.

• Submarkets: CCR (Core Central Region, for example Raffles Place and Sentosa), RCR (Rest of Central Region, for example Queenstown) and OCR (Outside Central Region).

• Data sources: REALIS (URA, paid subscription) for past transaction data. INLIS (SLA) for land titles, legal records and land boundaries.

Cooling measures (rates as at November 2026)

Additional Buyer's Stamp Duty (ABSD) reduces demand and discourages speculation. Seller's Stamp Duty (SSD) discourages quick flipping. (alway change)

Buyer	1st property	2nd property	3rd and later
Singapore citizen	0%	20%	30%
Singapore PR	5%	30%	35%
Foreigner	60%	60%	60%
Entity or trust	65%	65%	65%
Housing developer	40% (35% remittable, 5% not)	same	same

SSD holding period (property bought on or after 4 July 2025)	Rate
Up to 1 year	16%
Over 1 to 2 years	12%
Over 2 to 3 years	8%
Over 3 to 4 years	4%
Over 4 years	0%

Properties bought between 11 March 2017 and 3 July 2025 follow the older 3-year schedule of 12%, 8% and 4%.

Financing rules

• SORA (Singapore Overnight Rate Average): the volume-weighted average rate of actual unsecured overnight interbank SGD transactions. Because it comes from observed transactions it is harder to manipulate, and compounded SORA smooths out daily swings.

• TDSR (Total Debt Servicing Ratio) 55%: your total monthly debt repayments (mortgage, personal loans, credit cards, hire purchase) cannot exceed 55% of gross monthly income. Refinancing an owner-occupied home is exempt if the loan amount is not increased and the tenure is not extended. Other exemptions are narrower, so ask the bank.

• MSR (Mortgage Servicing Ratio) 30%: applies only to HDB flats and new ECs. Mortgage repayments alone are capped at 30% of gross monthly income. For joint borrowers, use total mortgage over total gross income.

Quick tip: TDSR counts all debts and applies to every property loan. MSR counts the mortgage only and applies to HDB and new EC only.

8. Numbers cheat sheet and who's who

Topic	Number to remember
Master Plan	10 to 15 year horizon, review every 5 years
Long Term Plan	About 50 year horizon, review every 10 years
LBC payment	Within 1 month of the Liability Order
Minimum plots	GCB 1,400 sqm · bungalow 400 · semi-D and corner terrace 200 · intermediate terrace 150
Dwelling units	GFA ÷ 85 sqm (÷ 100 sqm in nine listed areas)
Share value	5 SV up to 50 sqm, then +1 per extra 50 sqm
Age to hold land	21 (18 to 20: leases up to 3 years only)
Easement by prescription	20 years of continuous use
Easement abandonment	Non-use for more than 12 years
Restrictive covenant	20 years, extended in 10-year steps
Caveat	5 years unless extended
Qualified title caution	Lapses 10 years after the title is created
Lease that must be registered	More than 7 years
Foreigner's lease limit	7 years including renewal options
Foreigner's land cap	15,000 sq ft (Sentosa Cove: 1,800 sqm)
Restricted property	5-year non-disposal · lose PR: sell in 2 years · inherited: dispose in 5 years
Foreign developer (QC)	Build in 5 years, sell in 2 years, extension 8% / 16% / 24%
OTP	1% option fee + 4% exercise fee = 5%, usually 14 days
Stamp duty after exercise	Due within 14 days
Gift clawback in bankruptcy	Transfers within 3 years before the application
TDSR / MSR	55% / 30%
SSD	16% / 12% / 8% / 4% over 4 years (bought on or after 4 July 2025)

Who's who

Role A	Role B
Mortgagor = borrower	Mortgagee = lender
Lessor = landlord	Lessee = tenant
Grantor = gives the easement	Grantee = receives the easement
Covenantor = promisor	Covenantee = promisee
Settlor = creates the trust	Trustee = holds legal interest for the beneficiary
Donor = gives the gift	Donee = receives the gift
Offeror = makes the offer	Offeree = receives the offer
Guarantor = gives the guarantee	Guarantee = the person protected

Before you walk into the exam

• Read each question for who is involved (citizen, PR, foreigner, company) before you pick an answer. Many Paper 1 traps depend on it.

• Match the time period in the question to the right rule: caveat 5, covenant 20, easement 12 and 20, QC 5 and 2.

• When two answers look right, ask which one protects the client or the public. Agency law usually favours that answer.

• Land is land title, strata is strata title, and HDB is its own rules.

Good luck, and thanks for reading. Bookmark this page and check back under the RES exam label. Paper 2 notes are here.

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

• Planned retail price S$29.90. Pre-order price S$22.90. Paperback ships in March 2027.

• Join the pre-order waitlist and ask for the free first third at frugalman.garynbc.com.

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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 URA, SLA, IRAS, MAS and CEA before relying on any figure. Let me know if you think I should remove any of the material.