Singapore Real Estate Salesperson (RES) Comprehensive Examination Notes: Legislation, Licensing, Professional Practice, and Taxation

Comprehensive flashcards covering developer sales procedures, OTP terms, stamp duties, CEA licensing requirements, PII guidelines, fit-and-proper criteria, and KEO qualifications.

When is a developer's Option to Purchase (OTP) issued?

When the developer accepts the purchaser's booking fee.

What is the standard booking fee for a licensed developer's OTP?

Generally $5\%$ to $10\%$ of the purchase price, subject to the prescribed OTP form.

How quickly must the developer deliver the Sale and Purchase (S&P) agreement and title deeds?

Within $2\text{ weeks}$ from the OTP date.

How long does the purchaser have to exercise a developer's OTP?

$3\text{ weeks}$ from delivery of the S&P agreement and title documents.

How does the purchaser exercise the developer's OTP?

By signing and returning the S&P agreement to the developer within the option period.

When is Buyer's Stamp Duty (BSD) and applicable Additional Buyer's Stamp Duty (ABSD) payable?

Generally within $14\text{ days}$ after signing the dutiable instrument in Singapore, or $30\text{ days}$ after receipt in Singapore if executed overseas.

When must the buyer pay up to $20\%$ of the purchase price in a developer sale?

Within $8\text{ weeks}$ of the OTP date, with the booking fee counted towards the $20\%$.

If a purchaser has paid a $5\%$ booking fee, how much more is required to reach the $20\%$ payment stage?

$15\%$ of the purchase price ($20\% - 5\%$).

If the developer's OTP is not exercised, how much of the booking fee is refunded?

$75\%$ of the booking fee is refundable; $25\%$ may be forfeited.

When must the developer refund the booking fee after an OTP lapses unexercised?

Generally within $4\text{ weeks}$, subject to the prescribed refund conditions.

Can the same developer reissue an OTP for the same unit to the same purchaser?

Generally prohibited within $12\text{ months}$ of the earlier OTP's expiry without prior written consent from the Controller of Housing.

What was the OTP validity extension period referenced in URA's 2020 guidance?

The Controller could consider extensions up to $12\text{ weeks}$ from the OTP date, subject to approval and agreement of both parties.

Can a purchaser assign a developer's OTP to another party?

No. The standard OTP is personal to the intending purchaser and cannot be assigned or transferred.

What must be consistent between cupboards and wardrobes shown in a show unit and the actual unit?

Items promised in the actual unit must match the show unit in specifications, dimensions, and types of materials.

What does vacant possession (VP) mean in property transactions?

The buyer is given physical possession of the property, free from occupants and belongings that interfere with possession.

What is the difference between TOP, VP, and CSC?

Temporary Occupation Permit (TOP) permits occupation; Vacant Possession (VP) is delivery of possession to the buyer; Certificate of Statutory Completion (CSC) records statutory completion.

How soon after the relevant $25\%$ TOP-stage payment must a developer generally deliver Vacant Possession (VP)?

Generally within $21\text{ days}$ after receiving the payment, subject to prescribed S&P terms.

What is the annual minimum CPD requirement under the CEA framework?

$16\text{ training hours}$ per cycle: $12\text{ Structured Learning (SL) hours}$ and $4\text{ Self-directed Learning (SDL) hours}$.

How are the $12\text{ Structured Learning (SL) hours}$ divided under the CEA CPD framework?

At least $4\text{ hours}$ of Prescribed Essentials (PE) and $8\text{ hours}$ of Professional Competencies (PC).

How many Self-directed Learning (SDL) hours are required annually, and under which category?

At least $4\text{ hours}$ under Generic Competencies Plus (GC Plus).

What is the prescribed Prescribed Essentials (PE) topic for the 2026 CPD cycle?

Prevention of Money Laundering, Proliferation Financing and Terrorism Financing (PMLPFTF).

Which two broad categories of Prescribed Essentials (PE) can CEA specify?

Specific PE topic, and Laws, Regulations and Ethics.

Which CPD course categories require CEA accreditation?

Structured Learning courses: Prescribed Essentials (PE) and Professional Competencies (PC).

Who approves an RES's Self-directed Learning / Generic Competencies Plus courses?

The real estate salesperson's Key Executive Officer (KEO).

Name three subject areas covered under Professional Competencies (PC).

Laws and regulations, property markets, and other related real estate competencies.

What subjects may count towards Generic Competencies Plus (GC Plus)?

SkillsFuture Singapore's $16$ Critical Core Skills, and other knowledge areas approved by the KEO.

When does each CPD cycle under the CEA framework run?

1 January to 31 December each year, aligned with the RES registration cycle.

Can $2\text{ hours}$ of PMLPFTF plus $2\text{ hours}$ of an ethics course fulfil the 2026 PE requirement?

No. The 2026 prescribed PE requirement requires at least $4\text{ hours}$ in the specific PE topic.

Are the CEA CPD requirements measured in credits or training hours?

Training hours, not the older CPD-credit system ($16\text{ training hours}$ total).

Who must obtain an Estate Agent (EA) licence?

Any entity conducting estate agency work, whether through salespersons (RESs) or directly.

Who submits a new Estate Agent (EA) licence application?

The EA's Key Executive Officer (KEO), via CEA's ACEAS platform.

When must an existing Estate Agent (EA) apply for a new licence?

When it changes its mode of business, such as converting from a sole proprietorship to a partnership or company.

With which government agency must a new EA entity be registered before applying for a licence?

ACRA.

Whom must an EA appoint to satisfy Estate Agents Act and Regulations requirements?

A qualified Key Executive Officer (KEO).

Can an Estate Agent (EA) entity hold a moneylender's licence?

No.

Which EA officeholders face moneylender licence restrictions?

Directors, partners, the sole proprietor, and the KEO cannot hold a moneylender's licence or be employed by a licensed moneylender.

What financial or legal statuses jeopardize an EA's fit-and-proper qualification?

Liquidation, winding-up, receivership, or a composition/scheme of arrangement with creditors.

What legal judgments or convictions may cause an EA to fail the fit-and-proper assessment?

Convictions, or civil judgments finding fraud, dishonesty, or breach of fiduciary duties.

Which individuals in an EA's management must personally meet fit-and-proper criteria?

The KEO, all directors/partners, and all persons responsible for the management of the EA.

Who must an EA's Professional Indemnity Insurance (PII) cover, and for what duration?

The EA entity, all RESs, and applicable partners, for the entire duration of the EA licence period.

What minimum operational standard operating procedure (SOP) subjects must an EA establish?

RES training and supervision, complaints and dispute handling, advertising and publicity, client accounts, and transaction records.

Who decides whether an applicant is fit and proper for CEA licensing or registration?

CEA, after considering all relevant facts and matters.

Which past criminal convictions must applicants disclose to CEA?

All court convictions, including military courts, in Singapore or overseas.

What dishonesty-related criminal conviction may render a person unfit for CEA registration?

An offence involving dishonesty or fraud, unless CEA determines otherwise.

What type of civil judgment against an applicant may make them unfit for registration?

A judgment involving fraud, dishonesty, or breach of fiduciary duties.

Which financial-crime convictions are major fit-and-proper red flags under CEA guidelines?

Money laundering, proliferation financing, or terrorism financing offences.

Which real estate legislation conviction directly impacts an applicant's fit-and-proper status?

Conviction of an offence under the Estate Agents Act 2010.

Which insolvency circumstances may render an applicant unfit under CEA regulations?

Undischarged bankruptcy or entering into a composition or arrangement with creditors.

Are CEA's stated fit-and-proper disqualifying circumstances absolute?

No. CEA retains the discretion to determine otherwise after considering all relevant facts and circumstances.

How can past detention or supervision affect an applicant's fit-and-proper status?

Prior Misuse of Drugs Act detention or CL(TP)A detention/police supervision may affect suitability.

Can CEA consider information beyond its listed fit-and-proper factors?

Yes, any other relevant facts or matters may be considered.

What liabilities are covered by Professional Indemnity Insurance (PII)?

Claims arising from professional wrongful acts, such as negligence, errors, or omissions committed in estate agency work.

Can an Estate Agent choose PII coverage above CEA's statutory minimum?

Yes. CEA's stated coverage limits are statutory minimum requirements.

What is the minimum PII entity indemnity for a sole proprietorship with exactly $1$ RES?

$\$100{,}000$.

What is the minimum PII entity indemnity for a non-sole-proprietorship with $1$ to $10$ RESs?

$\$200{,}000$.

What is the minimum PII entity indemnity for a sole proprietorship with $2$ to $10$ RESs?

$\$200{,}000$.

What is the minimum PII entity indemnity for an EA with $11$ to $30$ RESs?

$\$300{,}000$.

What is the minimum PII entity indemnity for an EA with $31$ to $50$ RESs?

$\$400{,}000$.

What is the minimum PII entity indemnity for an EA with $51$ to $500$ RESs?

$\$600{,}000$.

What is the minimum PII entity indemnity for an EA with more than $500$ RESs?

$\$1{,}000{,}000$.

What minimum PII sub-limit applies per individual RES across all EA categories?

$\$100{,}000$ per salesperson, for every EA-size category.

What is the maximum PII deductible per entity claim for EAs with up to $50$ RESs?

$\$5{,}000$.

What is the maximum PII deductible per entity claim for EAs with $51$ to $500$ RESs?

$\$10{,}000$.

What is the maximum PII deductible per entity claim for EAs with over $500$ RESs?

$\$20{,}000$.

What is the maximum PII deductible per claim against a salesperson across all EA sizes?

$\$5{,}000$.

Can the minimum PII indemnity limit cover both the EA entity and its RESs under one policy?

Yes, the minimum indemnity limit may cover the entity and its salespersons collectively under a single policy.

What is the minimum academic qualification required for a Key Executive Officer (KEO)?

$4$ GCE O-Level passes or equivalent.

How recent must a KEO's Real Estate Agency (REA) examination pass be?

Passed within the $2\text{ years}$ immediately preceding the date of the EA licence application.

What corporate role must a KEO hold within the EA entity?

Sole proprietor, director, or partner.

What is the minimum estate agency work experience required to qualify as a KEO?

At least $3\text{ years}$ of experience (e.g., as a registered RES, KEO, or practising director/partner).

What is the transaction-based competency criterion for a KEO applicant?

Completion of at least $30$ concluded transactions in the preceding $3\text{ years}$ as or on behalf of an EA.

What is the alternative experience route to the $30$ concluded transactions for a KEO?

At least $3\text{ years}$ managing a licensed EA as an executive director, partner, or KEO.

Can a KEO concurrently serve as a salesperson, KEO, or director in another EA?

No; nor can they be a sole proprietor of another licensed EA.

What prior EA licence revocation history disqualifies a prospective KEO?

Having previously been a sole proprietor, KEO, director, or partner of an EA whose licence was revoked.

What moneylender affiliations are prohibited for a prospective KEO?

Holding a moneylender's licence or serving as an employee, director, partner, or shareholder of a licensed moneylender.

What MediSave status must KEOs, directors, and partners maintain?

Self-employed MediSave contributions paid in full or an active CPF Board GIRO payment arrangement.

How can applicants check or arrange their self-employed MediSave payments?

Through the CPF self-employment dashboard using Singpass.

Which KEO criteria also apply to practising partners and practising directors of an EA?

All listed KEO criteria except the REA examination pass requirement.

What must an EA do first if its KEO application involves a foreign national?

Check with CEA regarding which type of employment pass the foreign national requires.

May an RES handle money in connection with a Singapore property sale or purchase?

Generally no. A narrow exception allows handing over a crossed cheque made payable directly to the client or prescribed stakeholder.

Does the Regulation 7 transaction-money prohibition apply to rental deposits for private residential property?

That specific prohibition does not cover private residential rental deposits.

If an agent represents a client without signing a prescribed estate agency agreement, are they exempt from statutory duties?

No. Statutory duties under the Estate Agents Act, Regulations, and Code of Ethics and Conduct remain fully applicable.

If a buyer is unrepresented, does the seller’s agent automatically represent the buyer by assisting them?

No. The agent continues to represent only the seller. With the seller's consent, the agent may render assistance to the unrepresented buyer.

If a seller prefers offers above $\$1{,}000{,}000$ and an offer of $\$980{,}000$ is received, what must the salesperson do?

Promptly communicate the offer to the seller and follow the seller's instructions.

How do you calculate the available monthly debt repayment capacity under TDSR?

$\text{Approximate room} = 55\% \times \text{assessed gross monthly income} - \text{existing monthly debt commitments}$.

Does TDSR calculation always use the borrower's full gross income and actual current interest rate?

Not necessarily. Variable and rental income are subject to haircuts (typically 30%), and stress-test interest rates are applied.

What valuation base is used to calculate Buyer's Stamp Duty (BSD) and Seller's Stamp Duty (SSD)?

BSD uses the higher of the purchase price or market value at acquisition; SSD uses the higher of the sale price or market value at disposal.

What is a salesperson's duty regarding potential Seller's Stamp Duty (SSD) when advising a seller?

Conduct reasonable checks and inform the client whether SSD applies to their sale.

Calculate estimated cash proceeds: Sale price $\$950{,}000$, outstanding loan redemption $\$580{,}000$, and CPF principal plus accrued interest refund $\$160{,}000$.

$\$210{,}000$ ($\$950{,}000 - \$580{,}000 - \$160{,}000$).

Is the net cash proceeds after repaying the bank loan and CPF refund equivalent to capital profit or gain?

No. Capital profit/loss compares the sale price with the original purchase price (and allowable costs), whereas cash proceeds depend on loan amortization and CPF funds used.

Define output tax, input tax, and Singapore's current standard rate of GST.

Output tax is GST charged on taxable supplies; input tax is GST incurred on business purchases; standard rate is $9\%$.

What is the general GST treatment for the sale and lease of bare residential versus non-residential properties?

Bare residential property sale or lease is exempt from GST. Non-residential property transactions are generally standard-rated at $9\%$.

When may a GST-registered landlord account for GST on a nominal $\$1$ rent for residential common property?

Only when all three criteria are met: the tenant is unrelated to the landlord; the common property is used exclusively for residential purposes; and the rent charged is nominal.

What formulas are used to calculate $9\%$ GST on GST-exclusive and GST-inclusive amounts?

GST-exclusive: $\text{GST} = \text{price} \times 9\%$. GST-inclusive: $\text{GST} = \text{total price} \times \frac{9}{109}$.

When is an eligible SC/SPR household eligible to apply for the HDB $\$10{,}000$ Citizen Top-Up?

When a qualifying listed SPR family member obtains Singapore citizenship, or when a Singapore Citizen child is born to the SC/SPR core household.

How does HDB disburse the $\$10{,}000$ Citizen Top-Up to two core-owners (one SC and one SPR becoming SC)?

Disbursed equally to both core-owners by crediting $\$5{,}000$ into each of their CPF Ordinary Accounts (CPF OA).

What is the application fee for an individual RES registration?

$\$60$, GST exempt.

What is the annual registration fee for an RES for a full year or if registered on or before 30 June?

$\$280$, GST exempt.

What is the RES annual registration fee if the registration is granted after 30 June (up to 31 December)?

$\$140$, GST exempt.

What half-rate fee principle applies to mid-year RES registrations?

A half-rate fee of $\$140$ applies for registrations approved after 30 June ending 31 December (half of the full annual fee of $\$280$).