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What governs classification — and a foreigner's eligibility — is the unit's actual title and zoning

A worked RES examination question on residential classification, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.

Paper 1Lesson 1Residential classificationFree — no sign-up

The question

An agent is asked to state the property type of a unit that a developer has marketed as a "dual-key SOHO with a loft", the buyer believing that one of those three labels must fix what kind of property it is for the purpose of buying and selling. The buyer wants to know which of the labels determines the unit's classification, and how a foreigner's eligibility to buy it would be judged.

Which statement is correct?

  1. A. The "SOHO" label fixes the type; the unit is classified as a SOHO on that basis.
  2. B. The "dual-key" label fixes the type; the loft and SOHO labels are mere marketing.
  3. C. None of the labels fixes the type; the title and zoning govern instead.
  4. D. The labels fix the type together, the three forming a recognised property class.

The answer, and why

Answer: C

The rule. "SOHO", "loft" and "dual-key" are marketing terms or design features, not property types. What governs classification — and a foreigner's eligibility — is the unit's actual title and zoning.

Why C is correct. None of the three labels classifies the unit; they are marketing, and the real type is fixed by the title and zoning.

The other options.

  • A and B each promote one label to a property type.
  • D treats the three together as a recognised class.

Exam note. Strip the marketing words away. A "dual-key SOHO with a loft" is classified by what its title and zoning say, not by the advertisement.

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