The prescribed estate agency forms are for ordinary residential sale, purchase and lease
A worked RES examination question on commission and forms, from our Paper 2 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
A salesperson is asked whether the prescribed estate agency forms must be used across a mixed bag of deals his firm is handling: a factory lease, an en-bloc collective sale, a developer's sale of new units in its own project, and an ordinary residential resale in Singapore.
Consider the following statements.
- (i) The prescribed forms are not required for industrial property, such as a factory lease.
- (ii) The prescribed forms are not required for an en-bloc collective sale under the Land Titles (Strata) Act.
- (iii) The prescribed forms must be used for a developer's sale of new units in its own licensed project.
- (iv) The prescribed forms are appropriate for a residential resale of a Singapore property.
The answer, and why
Answer: D
The rule. The prescribed estate agency forms are for ordinary residential sale, purchase and lease. They are not required for industrial or commercial property, for en-bloc collective sales under the Land Titles (Strata) Act, or for a developer's sale of new units in its own project.
Why D is correct. (i), (ii) and (iv) are correct. (iii) is false — a developer's new-launch sale is outside the prescribed forms.
The other options.
- A adds the false (iii), that new-launch developer sales use the forms.
- B drops the industrial-property exclusion at (i).
- C drops the en-bloc exclusion at (ii).
Exam note. Industrial, commercial, en-bloc and developer launches all sit outside the prescribed forms; ordinary residential resale is where they apply.
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