Question 1
A salesperson is told that the bundle of rights an owner holds includes the right to use, to enjoy, to exclude others, to dispose of, and to recover the property. He is then asked to apply that to a client who owns an HDB flat and who must obtain approval before selling and before renting out, but needs no approval at all to mortgage. The client has said he feels he owns the flat in every way that matters, and the salesperson is unsure whether to agree with him.
Which statement most appropriately describes the flat owner's position?
- A. Where approval must be obtained, the owner does not hold that right as of right at all.
- B. The owner holds the full bundle of rights, the approval requirement being administrative.
- C. The owner holds none of the bundle, the flat being under the authority's control throughout.
- D. The owner holds the full bundle of rights, approval being granted in most cases in practice.
Show the answer and full explanation
Answer: A
The rule. Where approval must be obtained before an act may be done, the owner does not hold that right as of right. Where no approval is needed, he does.
Why A is correct. It states the test correctly.
The other options.
- B treats the requirement as administrative
- C denies the owner any rights at all
- D relies on approval usually being granted. D is the subtle one: how often approval is given says nothing about whether the right exists.
Exam note. "When you need someone's approval, you have no right." Frequency of approval is irrelevant.
Where approval must be obtained before an act may be done, the owner does not hold that right as of right →
Question 2
A registered proprietor of a terrace house wishes to understand precisely what he may do with it without asking anybody's permission, having become frustrated during a renovation. He may occupy it, let it out, sell it, mortgage it, and leave it by will, and has done several of these over the years without difficulty. He may not build a second storey without approval, nor change its use from residential to commercial, and has recently been refused on the first of those. He asks his agent whether he can properly be said to own the property at all.
Which statement most appropriately describes his position?
- A. The rights he holds are extensive but not unlimited, several of them needing approval.
- B. He holds no real rights at all, given how many matters require somebody's approval.
- C. He holds unlimited rights, planning approval being a formality that qualifies nothing.
- D. He holds unlimited rights over the building but none at all over the land beneath it.
Show the answer and full explanation
Answer: A
The rule. Ownership confers a bundle of rights, several of which are qualified by the need for approval. The rights are extensive but not unlimited.
Why A is correct. Extensive but qualified.
The other options.
- B denies real rights
- C dismisses planning approval as a formality
- D invents a division between building and land.
Exam note. The right answer here is the moderate one, which is unusual and worth noticing.
Ownership confers a bundle of rights, several of which are qualified by the need for approval →