How to Read Lease Term. Move Out Date Is Midnight of October 1st
A tenancy agreement (TA) is the more detailed, legally binding version of the letter of intent (LOI). The document states the rental terms agreed past the landlord and tenant. Information technology also sets out each party's rights and obligations with regards to the tenancy. Unremarkably, the landlord — or the property amanuensis of the landlord — prepares the tenancy agreement in accordance with the LOI.
Note that the TA is more important than the LOI, and must be read in close detail. If there are legal disputes, the final effect hinges on this document.
The Council for Estate Agencies (CEA) now provides a standardised template of the rental agreement that you lot can apply. As such, we now expect that near tenancy agreements in Singapore will exist based on these samples that yous can download:
- HDB flats
- Private property
You are advised to have a property agent of your own to go through the TA, at least for your starting time time as a tenant in Singapore.
Security deposit
In Singapore, the signing of the rental understanding is often concurrent with your handing over of the security deposit.
Past convention (not law), the security eolith is ane month's rent for a one-yr charter, or double that for a two-yr lease. Information technology volition be refunded at the end of the lease, after deductions due to damages.
If there is any impairment to the property too fair habiliment and tear, the landlord can subtract the cost of damages from your security deposit. In general, the deposit is simply used to comprehend amercement for which you are direct responsible. A leak caused past an old kitchen piping won't be deducted from your deposit, but a pigsty in the wall from a wild party will exist.
If there'due south a premature termination of the charter — and no clause in the TA permits such a termination — your security eolith can be withheld. In brusque, breaking the charter causes y'all to forfeit the deposit.
For a more detailed business relationship on the security deposit, meet our Good Faith Deposit vs Security Deposit Guide.
What'south in a tenancy agreement?
If the CEA template is not being used, all rental agreements should include the post-obit information:
- Full name and contact address of the landlord and tenant
- Address of the property to be rented
- The date the TA is signed
- Lease period, including the starting and end dates of the tenancy
- Addresses for service for both the landlord and the tenant
- The rent corporeality and frequency of payments
- Payment mode and the account to which payment is to be made
- Any fees to be paid (eg. commission for property agents)
- Inventory list of all the items in the flat
What to look out for in a rental tenancy agreement in Singapore?
In add-on to the above, many rental contracts in Singapore include clauses regarding:
- Payment for utilities (find out if this is included in the rent; if aye, find out if it includes internet access — some agreements simply encompass water and electricity)
- Insurance matters (notation that the landlord's dwelling content insurance may not extend to cover tenants)
- Applicable stamp duties
- Conditions of access to bounds (this states when and how your landlord can enter the firm during the lease period)
- Any regular servicing schedules, such every bit air-conditioner servicing or gardening (for landed properties)
- Conditions of the security deposit and adept faith deposit
- Termination clauses
- Details of what happens if rent is paid late or not at all.
(If you're looking to rent a place in Singapore, browse the latest rooms for rent on 99.co or the latest property for rent in Singapore!)
Here are some clauses to pay special attention to.
ane. Diplomatic Clause and Reimbursement Clause (Early Termination of Lease)
Expatriates should insist on this clause. This lets y'all cease the charter prematurely if you lose your job or are transferred to some other state.
Commonly, the clause tin be exercised after you lot are 12 months into a two-year charter. Information technology allows you to cease the contract without having to pay the additional months of hire.
By convention, a notice period of two months will be stated in the clause.
If you require the landlord to include the Diplomatic Clause, it is non unusual for a Reimbursement Clause to exist included. This stipulates that you have to reimburse a part of the holding amanuensis's commission.
You tin discover out more about early termination of lease agreements in our guide here.
For more information on mutual commission rates and responsibilities check out our agent commission guide.
2. Modest Repair Clause and Other Maintenance Clause
This clause states how much you are liable to pay, for damage acquired by vesture and tear (damage from directly negligence is deducted from the security deposit). By convention, tenants pay the starting time S$150 for fixing whatever wear and tear, while the landlord covers the rest.
For instance, the washing car requires repairing and it costs South$200. As a tenant, you'll take to pay the first Southward$150, while your landlord will embrace the remaining S$50.
Nosotros propose all tenants to insert a trouble-free menstruum clause in the tenancy agreement, preferably xxx days or more. This way you are not liable for any damages during the initial period of the lease. It also protects you lot from amercement caused by the previous tenant.
three. Choice to Renew Clause
This is a clause that lets tenants extend the lease for another term — normally a year — with a two-calendar month prior observe. If the clause is exercised, the landlord volition prepare a contract for an extension. The clauses stay the same as the electric current contract unless specified otherwise.
iv. Admission to Bounds Clause
At that place are commonly a series of "Access to Premises" clauses, allowing landlords to enter the premises for a stated purpose. Typically, the purposes for which a landlord would enter the premises is for repair piece of work or viewings for time to come tenants.
Towards the end of your charter, the landlord may adjust for viewings to minimise the vacancy period of the unit.
5. En Bloc Clause
This clause states that, if in that location is a collective sale of the evolution, the landlord can sell the property and prematurely end your lease without bounty. En bloc sales are passed by a majority of the development'southward owners, so your landlord has to sell the property regardless of whether he wants to or not.
This is a risk to take seriously when renting very old leasehold properties, such as those that are past 30 or xl years in age. Given how long it takes an en bloc to proceed, however, it's probable that your lease volition exist over long before yous need to vacate the property.
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If you found this commodity helpful, 99.co recommends Guide to breaking lease and early termination of tenancy agreement in Singapore and 7 things Singapore landlords MUST DO to survive 2021.
Looking for a holding? Find the domicile of your dreams today on Singapore'south fastest-growing holding portal 99.co! If you would like to estimate the potential value of your holding, check out 99.co'southward Property Value Tool for free. Meanwhile, if you have an interesting property-related story to share with us, drib us a message here — and we'll review information technology and get dorsum to you.
Frequently asked questions
Can I write my own tenancy agreement?
Technically, yeah, you lot can do that. You may also refer to the tenancy understanding samples on the CEA website to write your own rental contract.
Tin I download a tenancy agreement?
Yes, you can download a template of the tenancy agreement used in Singapore from the CEA website.
How to due east-stamp the tenancy agreement?
You tin do so online through the IRAS e-Stamping Portal and login with your SingPass. You'll then be prompted to fill in the necessary information and pay the tenancy agreement postage duty. You can brand the payment by GIRO, eNETS or other payment methods similar FAST and AXS.
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Source: https://www.99.co/singapore/insider/tenancy-agreement-and-security-deposit/
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