Resale option stakeholder

Question 1

On the resale of a completed apartment, the buyer exercises the Option to Purchase and pays the 4% exercise fee. The OTP contains a stakeholder clause naming the Singapore Academy of Law, but the parties strike it out during negotiations. The buyer's agent asks how striking out the clause affects who holds the 4% exercise fee. Which statement is correct?

1. A. The 4% exercise fee must be held by the buyer's own solicitor until completion.
2. B. The 4% exercise fee must still be held by the Singapore Academy of Law as stakeholder.
3. C. The 4% exercise fee is automatically refunded to the buyer once the clause is struck out.
4. D. The 4% exercise fee is released directly to the seller rather than held by a stakeholder.

Question 2

On a completed-property resale, the buyer's exercise fee and the conveyancing moneys must be held pending completion. When the seller asks whether he can have the money early, the agent checks how the safeguards work after the reforms to conveyancing-money handling.

Consider the following statements.

1. (i) The 4% exercise fee may be held by the Singapore Academy of Law as stakeholder.
2. (ii) Once a stakeholder holds the exercise fee, it may be released to the seller before completion at the seller's request.
3. (iii) The 4% exercise fee may instead be held in the vendor's solicitors' conveyancing account.
4. (iv) If the stakeholder clause is struck off, the 4% is released to the seller directly.

1. A. (iii) and (iv) only
2. B. (i), (iii) and (iv) only
3. C. (i), (ii), (iii) and (iv)
4. D. (i) and (iv) only