The buyer therefore has a real interest in ensuring the seller pays
A worked RES examination question on seller stamp duty, from our Paper 2 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
A buyer has duly paid his Buyer's Stamp Duty, but the seller has not paid the Seller's Stamp Duty on the same sale contract. The buyer assumes this is entirely the seller's problem. Which statement is correct?
The answer, and why
Answer: D
The rule. If the seller fails to pay SSD, the sale contract is not duly stamped even though the buyer paid BSD — so the contract is unenforceable and a penalty of up to four times the duty can follow. The buyer therefore has a real interest in ensuring the seller pays.
Why D is correct. Outstanding SSD leaves the contract not duly stamped and thus unenforceable — a genuine risk to the buyer, not just the seller.
The other options.
- A — paying BSD does not fully stamp a contract on which SSD is outstanding.
- B — an unstamped contract is unenforceable, which is the buyer's concern too.
- C — IRAS does not waive SSD because BSD was paid; a penalty up to 4× may apply.
Exam note. The buyer is not insulated from the seller's unpaid SSD — the contract stays "not duly stamped" until all duty is paid.
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The free half-paper is 20 questions with a Section B case study, explained to this same depth. The paid sets are ten full 80-question papers across Paper 1 and Paper 2, every figure checked against the current IRAS, CEA, HDB, URA and SLA position.
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Independent study material. Not affiliated with or endorsed by the Council for Estate Agencies. No pass guarantee — for study use only.