Where approval must be obtained before an act may be done, the owner does not hold that right as of right
A worked RES examination question on ownership bundle of rights, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
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?
The answer, and why
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.
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