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Paper 2 · Lesson 4 — Sale of Uncompleted and Completed Private Properties

Developer licensing

The Sale / No-Sale Licence, the >4-unit threshold, track record and BCA quality systems, the show-unit regime, approvals before sale, the pre-contract info package, the name-board, the unit-cap formula.

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Question 1

Marina Bay Developments promotes its track record using two BCA assessment systems and has set up a show unit for its uncompleted project. A buyer asks the agent how those systems and the show-unit rules bear on the type of licence the developer needs.

Consider the following statements.

  1. (i) Quality Mark and CONQUAS are distinct BCA systems used to assess construction quality and track record.
  2. (ii) A show-unit regime governs the display units a developer may present for an uncompleted project.
  3. (iii) A weak track record on these systems can push a developer towards a No-Sale Licence.
  4. (iv) A developer may use its performance on these systems to demonstrate its construction track record.
  1. A. (i), (ii), (iii) and (iv)
  2. B. (i), (iii) and (iv) only
  3. C. (ii), (iii) and (iv) only
  4. D. (i), (ii) and (iv) only
Show the answer and full explanation

Answer: A

The rule. Quality Mark and CONQUAS are distinct BCA systems assessing construction quality and track record; a developer may use its performance on them to show its track record, and a weak record can push it toward a No-Sale Licence. A show-unit regime governs the display units a developer presents for an uncompleted project.

Why A is correct. All four are correct — the two BCA systems, the show-unit regime, the No-Sale Licence link, and the use of performance to demonstrate a track record.

The other options.

  • D drops (iii), the No-Sale Licence link.
  • B drops (ii), the show-unit regime.
  • C drops (i), the two BCA systems.

Exam note. Quality Mark and CONQUAS assess quality/track record; a weak record steers toward a No-Sale Licence; a show-unit regime governs display units.

A show-unit regime governs the display units a developer presents for an uncompleted project →

Question 2

Skyline Developments holds a Sale Licence for its uncompleted project, and its marketing agent checks which conditions attach to how and when the developer may sell the units.

Consider the following statements.

  1. (i) A Sale Licence permits the developer to sell units after Building Plan Approval is obtained.
  2. (ii) A Sale Licence removes the developer's need to hold any licence at all.
  3. (iii) The developer's sale of units remains subject to the conditions attached to its licence.
  4. (iv) A No-Sale Licence, by contrast, bars selling until TOP.
  1. A. (i) and (iii) only
  2. B. (i), (ii), (iii) and (iv)
  3. C. (i), (iii) and (iv) only
  4. D. (ii) and (iii) only
Show the answer and full explanation

Answer: C

The rule. A Sale Licence permits selling after Building Plan Approval, but the developer's sale of units remains subject to the conditions attached to its licence; a No-Sale Licence, by contrast, bars selling until TOP. A licence does not remove the need to be licensed at all.

Why C is correct. (i) selling after Building Plan Approval, (iii) the licence conditions and (iv) the No-Sale Licence bar are correct. (ii) is false — a Sale Licence does not remove the need to hold a licence.

The other options.

  • B adds the false (ii), dispensing with the licence.
  • A drops (iv), the No-Sale Licence bar.
  • D drops (i), selling after Building Plan Approval.

Exam note. A Sale Licence lets you sell after Building Plan Approval — under its conditions; a No-Sale Licence bars selling until TOP.

A licence does not remove the need to be licensed at all →

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