What does CU4 cover in RES Paper 2?
A buyer’s purchase price is only one part of a transaction. Eligibility, documents, deadlines, taxes and financing all affect what can happen next. CU4 helps you put those parts in order and distinguish the rules for different property and transaction types.
The 2027 syllabus has eight CU4 topics, ending with taxes on property at 4.7 and property finance at 4.8. Older notes may use 4.8 and 4.9 for those subjects because Foreign Worker Housing was previously a separate topic. Check the edition before matching your notes to a chapter.
CU4 covers uncompleted and completed private property sales, collective sales, HDB sales, private residential leasing and HDB rentals. Its final two topics bring together taxes and financing. Organise your revision around the type of transaction first, then identify the eligibility checks, documents and calculations that apply to it.
Official unit title: Property Transactions.
All 8 CU4 topics, explained
The headings and numbers below follow the 2027 syllabus. Use the chapter links to plan a focused revision session.
- 4.1Sale of uncompleted private properties
- 4.2Sale of completed private properties
- 4.3Collective sale of private properties
- 4.4Sale of HDB flats
- 4.5Leasing of private residential properties
- 4.6Renting out HDB flats/bedrooms
- 4.7Taxes on property
- 4.8Property finance and financial calculations
4.1 Sale of uncompleted private properties
Follow a developer sale from the option stage through the sale and purchase agreement and payment milestones. Keep the prescribed process for an uncompleted property distinct from the resale of a completed home.
Practise topic 4.14.2 Sale of completed private properties
Map the stages of a completed private property sale, including checks, the option, exercise and completion. Read the actual transaction terms when considering dates, payments and obligations rather than assuming one standard timetable fits every deal.
Practise topic 4.24.3 Collective sale of private properties
Understand how a collective sale differs from an individual owner’s sale. Study the consent requirements, process and safeguards together, and identify which legal framework applies to the development described.
Practise topic 4.34.4 Sale of HDB flats
Connect HDB eligibility, the HFE letter, resale procedures and the policies affecting sellers and buyers. Separate eligibility to buy from eligibility for a loan or grant, and check the household and flat circumstances relevant to each.
Practise topic 4.44.5 Leasing of private residential properties
Work through the leasing of a private residential property, from checks and negotiations to the tenancy agreement and handover. Identify the applicable use and occupancy requirements alongside the parties’ contractual responsibilities.
Practise topic 4.54.6 Renting out HDB flats/bedrooms
Distinguish renting out an entire HDB flat from renting out bedrooms. Compare the owner, tenant, approval and occupancy requirements for the arrangement being considered, with reference to current HDB guidance.
Practise topic 4.64.7 Taxes on property
Study Buyer’s Stamp Duty (BSD), Additional Buyer’s Stamp Duty (ABSD), Seller’s Stamp Duty (SSD), lease duty, property tax, rental income tax and GST. Identify the taxable event, relevant date, property type and party before selecting a treatment or rate.
Practise topic 4.74.8 Property finance and financial calculations
Bring together loan-to-value (LTV), Total Debt Servicing Ratio (TDSR), Mortgage Servicing Ratio (MSR), HDB loans, CPF housing rules, grants and resale levies. Work towards a complete financing picture, including cash, CPF, loan quantum and net sale proceeds.
Practise topic 4.8TDSR, MSR, LTV and CPF answer different questions
A financing calculation can involve several constraints. Start by understanding what each one measures, then use the rules and assumptions applicable to the buyer and property.
| Concept | Question it answers | Keep in view |
|---|---|---|
| TDSR | How do total monthly debt obligations compare with income? | Other debts, recognised income and applicable assessment rules. |
| MSR | How do the relevant monthly mortgage repayments compare with income? | Whether the property and loan fall within the MSR framework. |
| LTV | How much can be borrowed relative to the relevant property value? | Applicable loan limits, valuation, tenure and borrower circumstances. |
| CPF housing usage | How much CPF can be used towards the property? | The buyer’s eligibility, housing limits and remaining lease. |
TDSR and MSR concern monthly affordability; LTV concerns loan size. CPF usage is a further part of the funding calculation. An LTV result alone does not establish a buyer’s final borrowing capacity.
Read the official guidance: MAS: Mortgage Servicing Ratio and Total Debt Servicing Ratio rules
How to study CU4
Choose the right transaction process
Identify whether you are dealing with a developer sale, private resale, collective sale, HDB resale or rental. Draw the relevant stages before adding figures.
Write down dates and assumptions
For tax and financing practice, note the transaction date, buyer profile, property type and any conditions in the facts. A remembered rate is useful only when its conditions match.
Show the complete funding picture
Keep price, valuation, loan, CPF, cash and transaction costs on separate lines. For a sale, distinguish the sale price from the net proceeds after the relevant repayments and costs.
Put the chapter into practice.
Work through Paper 2 by topic, then bring the concepts together in case studies and mock practice.
Practise Paper 2Sign in or create an account to save your progress.
RES CU4 FAQs
How many topics are in RES CU4 for 2027?
There are eight topics, numbered 4.1 to 4.8. The separate Foreign Worker Housing topic has been removed from the revised syllabus, so taxes and property finance have different numbers from those in older outlines.
Does CU4 include stamp duty and property tax calculations?
Yes. Taxes on property is topic 4.7 in the 2027 syllabus. It includes stamp duties and property tax, as well as rental income tax and GST considerations. Use IRAS guidance to check the relevant treatment and effective dates.
Where do TDSR, MSR, LTV and CPF fit in the syllabus?
They belong in CU4 topic 4.8, Property finance and financial calculations. Study them as related parts of funding a property purchase, while keeping their different purposes and conditions clear.
Should I always use the latest published policy in exam practice?
Check both the effective date and CEA’s exam policy. CEA states that candidates will not be tested on government policy changes announced or implemented within one month before the examination. Keep the sitting date and applicable rules explicit when choosing revision material.
Sources & further reading
This is an overview to support revision. Read the official syllabus for the full learning outcomes, and check the relevant authority’s guidance for the rules and effective dates.
- Official CEA RES syllabus 2027 · Version 1.0 (PDF)
- CEA: RES examination preparation and syllabus changes
- IRAS: Stamp duty basics for property
- MAS: MSR and TDSR rules for housing loans
- HDB: Application process for a resale flat purchase
- CPF Board: Using CPF to buy a home
Written by RESU. Independent study material based on the published CEA syllabus.