Paper 2 · Lesson 5 — Collective Sale, Private and HDB Leasing, Foreign-Worker Housing, Lease Stamp Duty and AML/CFT
HDB flat and room rental
Renting out a whole HDB flat vs bedrooms: the MOP before whole-flat rental, citizen / PR eligibility, the non-citizen occupancy cap and quota, maximum occupants, and HDB registration. Tiebreak with `foreign-worker-housing`: a question framed around an HDB owner / agent letting to a foreign pass-holder homes here; one framed around an employer housing its own workers homes in `foreign-worker-housing`.
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Question 1
A homeowner intends to keep living in his HDB flat while renting out a couple of rooms to help with the instalments, and asks his agent which rooms he may sublet and whether the agent can simply take the tenants' cash deposit off his hands. He is under the impression the store and the utility room could be let as sleeping spaces. He also assumes that, because the tenants will pay him in cash, his agent can simply keep their deposit on his behalf for convenience.
Consider the following statements.
(i) Only bedrooms originally constructed by HDB may be sublet.
(ii) The salesperson may collect and keep a cash rental deposit on the owner's behalf.
(iii) The living room, household shelter and utility room may not be sublet as bedrooms.
(iv) HDB's approval must be obtained before the tenancy begins.
A. (i) and (iii) only
B. (iii) and (iv) only
C. (i), (iii) and (iv) only
D. (i), (ii), (iii) and (iv)
Show the answer and full explanation
Answer: C
The rule. Only HDB-original bedrooms may be sublet (i); common spaces such as the living room, household shelter and utility room may not be sublet as bedrooms (iii); and HDB's approval is needed before the tenancy begins (iv). The salesperson may not collect and keep a cash deposit for the flat (ii is false).
Why C is correct. (i), (iii) and (iv) are right; (ii) is false.
The other options.
A drops (iv), the approval requirement.
B drops (i), the original-bedroom limit.
D adds the false (ii), the cash-deposit handling.
Exam note. Original bedrooms only; approval before the tenancy; and the agent cannot hold the cash deposit.
An HDB owner who will keep living in his flat wants to sublet a single bedroom, and asks his agent three practical things: whether the agent can take the tenant's cash deposit, what he must do if the tenant later changes, and whether he needs to go through any anti-money-laundering checks for so small a letting. He has heard conflicting things about whether so small a letting needs the same anti-money-laundering checks as a full sale would.
Consider the following statements.
(i) The salesperson may hold the cash deposit for the room rental on the owner's behalf.
(ii) Only bedrooms originally built by HDB may be sublet; converted or common spaces may not.
(iii) The owner should inform HDB of later changes to the tenant's particulars.
(iv) Customer due diligence is not required for an HDB room rental.
A. (ii) and (iii) only
B. (i), (ii), (iii) and (iv)
C. (iii) and (iv) only
D. (ii), (iii) and (iv) only
Show the answer and full explanation
Answer: D
The rule. Only HDB-original bedrooms may be sublet (ii), the owner should notify HDB of later tenant changes (iii), and customer due diligence is not required for an HDB room rental (iv). The salesperson may not hold a cash deposit for the rental (i is false).
Why D is correct. (ii), (iii) and (iv) are right; (i) is false.
The other options.
A drops (iv), the CDD exemption.
C drops (ii), the original-bedroom limit.
B adds the false (i), the agent holding the cash deposit.
Exam note. Original bedrooms; notify HDB of changes; no CDD for the room rental; and no cash deposit in the agent's hands.
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