Legislation, Regulations & Policies Cheat Sheet for RES Exam Revision

The Estate Agents Act governs real estate practice in Singapore. Key registration requirements: salespersons must register with CEA within 14 days of employment; registration valid for 1 year and renewable. Financial penalties: maximum fine of S$200,000 for corporate offenders, S$100,000 for individuals. Imprisonment terms: up to 5 years for serious offences. Mandatory disclosure: salespersons must disclose their registration status and whether they represent buyer or seller. Prohibited conduct: cannot act for both parties without written consent; cannot mislead on property value or facts. Continuing Professional Development (CPD): 6 CPD points annually required for license renewal. Remember that unlicensed practice carries penalties, and all advertising must include salesperson's registration number and agency license number.

The Residential Property Act restricts foreign ownership of certain property types. Restricted properties: landed residential property (bungalows, terrace houses, etc.) and properties on restricted land. Who qualifies as foreigner: non-Singapore citizens, foreign companies, entities with foreign shareholders. Approval required: foreigners must obtain approval from Minister for Law/Land Dealings (Approval) Unit before purchasing restricted properties. Sentosa Cove exception: landed properties in Sentosa Cove approved for foreign ownership without additional approval. Penalties: contracts void if approval not obtained; fines up to S$100,000 and/or imprisonment up to 3 years. Singapore Permanent Residents (SPRs): can purchase most private residential properties without approval, but landed property requires approval unless part of approved condominium development. Companies: if any shareholder is foreign, company treated as foreign entity.

ABSD rates vary by buyer profile and number of properties owned. Singapore Citizens: 0% (first property), 20% (second property), 30% (third and subsequent). Singapore PRs: 5% (first property), 30% (second property), 35% (third and subsequent). Foreigners: 60% (all residential properties) as of April 2023. Entities: 65% for housing developers, 35% for non-housing developers prior to February 2018, 65% thereafter. Married couples: ABSD applies if either spouse owns property previously. Remission: SC-SC married couples may apply for remission if selling first property within 6 months of acquiring second. Trust purchases: ABSD applies based on beneficiary's profile. En-bloc sales: owners who acquire replacement property within 6 months may apply for remission. These rates are frequently tested and subject to policy changes.

SSD discourages property flipping by taxing short holding periods. Holding period calculation: from date of purchase to date of sale (contract date). SSD rates for residential property: 12% (up to 1 year), 8% (more than 1 year up to 2 years), 4% (more than 2 years up to 3 years), 0% (more than 3 years). Applicable to: all residential properties acquired on or after 14 January 2011, including HDB flats acquired on or after 3 March 2017. Industrial properties: SSD applies to industrial properties acquired between 12 January 2013 and 10 March 2017 (15% up to 1 year, 10% between 1-2 years, 5% between 2-3 years). Exemptions: transfer between immediate family members due to divorce, death, or gift. Calculation base: higher of purchase price or market value. Remember SSD is in addition to Buyer's Stamp Duty.

TDSR limits borrowers' total debt obligations to ensure sustainable borrowing. TDSR threshold: 55% of gross monthly income (increased from 60% in December 2021). Calculation: total monthly debt obligations divided by gross monthly income, including all property loans, car loans, credit cards, and other debts. Applicable to: all property loans granted by financial institutions for residential properties. Income assessment: net income for self-employed; gross income for salaried. Loan tenure cap: maximum 30 years for HDB loans; 35 years for bank loans (reduced to 30 years if borrower is 55+ or LTV exceeds 80%). Interest rate stress test: calculated at medium-term interest rate of 4% per annum. Exemptions: HDB concessionary loans not subject to TDSR but subject to Mortgage Servicing Ratio (MSR). TDSR violations can result in loan rejection.

LTV limits restrict maximum borrowing relative to property value. First housing loan (tenure ≤30 years, borrower <55): 75% LTV, 55% TDSR. First loan (tenure >30 years or borrower ≥55): 55% LTV, 55% TDSR. Second housing loan: 45% LTV, 25% cash down payment (balance can be CPF). Third and subsequent loans: 35% LTV, 25% cash down payment. HDB flats: 80% LTV for HDB loans, 75% for bank loans (subject to MSR 30%). Executive Condominiums (ECs): treated as HDB during 5-year MOP, then as private property. Valuation limit: LTV calculated on lower of purchase price or valuation. Refinancing: different LTV limits apply based on outstanding loan tenure. These limits are critical for advising clients on financing options and frequently appear in exam scenarios.

Minimum Occupation Period (MOP): 5 years before selling or renting entire flat; 3 years for selling under Deferred Income Assessment Scheme. Income ceiling (BTO/new flats): S$14,000 for families, S$7,000 for singles. Age requirements: at least 21 years old; singles must be 35+ (exceptions for orphans, Joint Singles Scheme). Citizenship: at least one buyer must be Singapore Citizen for new flats; SPRs can buy resale only with SC. Family nucleus: recognized family units include married couples, parents with children, children under joint custody. Singles Scheme: singles 35+ can purchase 2-room or smaller resale flats in non-mature estates, or 3-room or smaller in mature estates. Ethnic Integration Policy (EIP): maintains ethnic balance in HDB estates with block and neighborhood limits. Priority schemes: Married Child Priority Scheme, Third Child Priority Scheme, Fresh Start Housing Scheme.

Withdrawal limit: lower of Valuation Limit (VL) or purchase price plus stamp duty and costs. Valuation Limit (VL): 120% of property value or purchase price, whichever is lower. Basic Retirement Sum (BRS): must set aside BRS in Ordinary Account (OA) and Special Account (SA) if 55+; BRS is approximately S$99,400 as of 2024. Accrued interest: must refund principal plus accrued interest (computed at 2.5% per annum) upon sale or transfer. CPF usage priority: OA funds used first before SA funds. Monthly installments: can use CPF to pay monthly mortgage installments up to withdrawal limit. Rental properties: cannot use CPF for purely investment properties; must occupy or have family member occupy. Pledging: property purchased with CPF must be pledged to CPF Board. Refund upon sale: proceeds used to refund CPF (principal + interest) before cash proceeds distributed.

Property tax is annual tax on immovable properties based on Annual Value (AV). Annual Value (AV): estimated gross annual rent property can fetch if rented out, excluding furniture and maintenance. Owner-occupied residential: progressive rates from 0% (first S$8,000 AV) up to 32% (AV above S$130,000). Non-owner-occupied residential: flat rates - 11% (first S$30,000), 16% (next S$15,000), 21% (next S$15,000), 27% (next S$15,000), 36% (above S$75,000). Non-residential: 10% flat rate. Owner-occupier eligibility: must be registered owner, Singapore Citizen or SPR, and personally occupy property. Payment: annual tax payable in January; can pay by monthly GIRO. Reassessment: IRAS reviews AV periodically based on market rental data. Penalties: late payment incurs 5% penalty after due date, additional 1% monthly interest thereafter.

Contract formation: offer + acceptance + consideration + intention = valid contract; must be in writing for property transactions (Section 6(d) Civil Law Act). Cooling-off period: none for private property; 5 working days for EC purchases during 5-year MOP. Option validity: Option to Purchase typically 14 days for private property, 21 days for HDB. Caveat lodging: within 14 days after Option exercise protects buyer's interest. Completion period: typically 8-12 weeks for private property, 8 weeks for HDB resale. Commission disputes: CEA Guidelines state commission rates negotiable; typical 2% for seller, 1% for buyer. Anti-money laundering: salespersons must report suspicious transactions exceeding S$20,000. Data protection: comply with Personal Data Protection Act (PDPA) when handling client information. For comprehensive practice across all these legislative areas and the other 12 RES exam topics, the Prepare app offers approximately 2,000 practice questions designed to test your understanding of these critical thresholds and regulations.