An independent RES exam study resource — not a Government website and not affiliated with the Council for Estate Agencies (CEA).Find My OrderHow to identify official CEA sources
Home / Free RES questions / Strata management share value

Paper 1 · Lesson 2 — Land, Title Types, Capacity, Powers of Attorney and Fixtures

Strata management share value

Share value (share owned vs right of use, voting, maintenance contribution), the management corporation, by-laws, management fund vs sinking fund.

1 questionAnswers & explanations includedFree — no sign-up

Question 1

A buyer of a unit in a strata development asks his agent two things before he commits. First, whether the development is obliged to have some body responsible for running and maintaining the common property, or whether that is left to the owners to arrange among themselves as they see fit. Second, whether the rules that govern the use of the common areas are the same across every condominium in Singapore, or whether they are particular to each development, so that what is allowed in one might be forbidden in another. He is thinking in particular of whether he will be able to keep a dog.

Which statement is correct?

  1. A. A management corporation is optional, and where one exists its rules are standard.
  2. B. A management corporation is optional, but its by-laws once made bind every development.
  3. C. A management corporation is compulsory, and its by-laws are identical everywhere.
  4. D. A management corporation is compulsory, and each may add by-laws of its own.
Show the answer and full explanation

Answer: D

The rule. Every strata development must form a management corporation to maintain the common property. A baseline set of by-laws applies to all such developments, and each corporation may add by-laws of its own by resolution.

Why D is correct. Compulsory corporation; each adds its own by-laws.

The other options.

  • A and B make the corporation optional.
  • C treats the by-laws as identical everywhere, which ignores the project-specific additions an agent must check.

Exam note. The corporation is compulsory, and the by-laws are baseline-plus-local — which is why you check the particular development's rules before answering a buyer about, say, pets.

Every strata development must form a management corporation to maintain the common property →

Practise it under exam conditions

Single questions test whether you know a rule. The paper tests whether you can find it in a scenario, at speed, with three plausible alternatives in the way. Start with the free 20-question half-paper.

Looking for past-year papers? CEA doesn't publish them — here's what it does publish.

Independent study material. Not affiliated with or endorsed by the Council for Estate Agencies. No pass guarantee — for study use only.