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Paper 2 · Lesson 3 — Marketing, Listings, Methods of Sale, Data Protection, Advertising and CPFTA

Foreign ownership RPA

Foreign person, restricted vs non-restricted, the PR-5-year threshold, the statutory windows, Sentosa, the nominee trust, the whole-development rule.

2 questionsAnswers & explanations includedFree — no sign-up

Question 1

A conveyancing team is checking, for the Residential Property Act, which of several prospective buyers of a landed house count as a "foreign person" who would need approval before buying.

Consider the following statements.

  1. (i) A Singapore citizen is a foreign person under the Act.
  2. (ii) A Singapore Permanent Resident is a foreign person under the Act.
  3. (iii) A company incorporated in Singapore and wholly owned by Singaporeans is a foreign person under the Act.
  4. (iv) A company with foreign shareholders is a foreign person under the Act.
  1. A. (iv) only
  2. B. (ii), (iii) and (iv) only
  3. C. (ii) and (iv) only
  4. D. (i), (ii) and (iv) only
Show the answer and full explanation

Answer: C

The rule. Under the Residential Property Act a "foreign person" is anyone who is not a Singapore citizen, a Singapore company, a Singapore LLP or a Singapore society. A Singapore Permanent Resident is a foreign person, and so is a company with any foreign shareholders. A Singapore citizen and a wholly Singapore-owned Singapore company are not foreign persons.

Why C is correct. (ii) the SPR and (iv) the company with foreign shareholders are foreign persons. (i) is false (a citizen is not) and (iii) is false (a wholly Singapore-owned company is not).

The other options.

  • B adds the false (iii), the Singapore-owned company as foreign.
  • A drops (ii), the SPR.
  • D adds the false (i), the citizen as foreign.

Exam note. SPR = foreign person under the RPA; a citizen and a wholly Singapore-owned company are not.

A Singapore citizen and a wholly Singapore-owned Singapore company are not foreign persons →

Question 2

On Elena's status and the proposed condominium purchase, consider the following statements.

  1. (i) Elena, as a Singapore Permanent Resident, is a foreign person under the Residential Property Act.
  2. (ii) A private condominium unit is a non-restricted property.
  3. (iii) Elena may buy the Tanjong Rhu condominium unit without Land Dealings Approval Unit approval.
  4. (iv) Because Elena is married to a Singapore citizen, she ceases to be a foreign person under the Act.
  1. A. (i), (ii), (iii) and (iv)
  2. B. (i), (ii) and (iii) only
  3. C. (i) and (iii) only
  4. D. (ii) and (iii) only
Show the answer and full explanation

Answer: B

The rule. A Singapore Permanent Resident is a foreign person under the Residential Property Act, and marriage to a citizen does not change that. But a private condominium unit is non-restricted, so a foreign person may buy it without approval.

Why B is correct. (i) Elena as a foreign person, (ii) the condominium as non-restricted and (iii) buying it without approval are correct. (iv) is false — marrying a citizen does not make Elena a non-foreign person.

The other options.

  • A adds the false (iv), the marriage changing her status.
  • C drops (ii), the non-restricted condominium.
  • D drops (i), Elena's foreign-person status.

Exam note. A PR is a foreign person (marriage does not change it), but a condominium is non-restricted — no approval needed.

But a private condominium unit is non-restricted, so a foreign person may buy it without approval →

Practise it under exam conditions

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