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The salesperson may not collect and keep a cash deposit for the flat (ii is false)

A worked RES examination question on hdb flat and room rental, from our Paper 2 bank — with the rule it turns on, and why each of the four options is right or wrong.

Paper 2Lesson 5HDB flat and room rentalFree — no sign-up

The question

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.

  1. (i) Only bedrooms originally constructed by HDB may be sublet.
  2. (ii) The salesperson may collect and keep a cash rental deposit on the owner's behalf.
  3. (iii) The living room, household shelter and utility room may not be sublet as bedrooms.
  4. (iv) HDB's approval must be obtained before the tenancy begins.
  1. A. (i) and (iii) only
  2. B. (iii) and (iv) only
  3. C. (i), (iii) and (iv) only
  4. D. (i), (ii), (iii) and (iv)

The answer, and why

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.

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