Private Properties
Landed Housing
Where houses are erected on a piece of land, and where the land title represents ownership of the entire land.
Condominium Apartments
Where apartments are erected on a piece of land and where the strata title represents ownership of the apartment and a proportionate share in the land.
Types of Tenancy
Personal Lease
The Tenant who is also the occupier binds himself as the agreeing party in the Tenancy Agreement. Hence the Tenant personally undertakes to abide by the contractual terms and conditions of the Tenancy Agreement.
Corporate Lease
The Tenant as the agreeing party in the Tenancy Agreement is a registered corporate entity and undertakes to abide by the contractual terms and conditions of the Tenancy Agreement. The occupier must be an employee of the Tenant and has the duty to ensure that his employer's obligations towards the Tenancy Agreement are met.
Agreements
Overview
Before accepting / offering any good-faith deposits for a premises, landlords / tenants are advised to determine the following:
- The Landlord is the legal owner of the premises, and if not,
- the Landlord is duly authorized to enter into a lease agreement with the Tenant.
- The tenant is legally permitted to reside in Singapore
- The tenant being a corporate entity is legally permitted to conduct his business in Singapore
- Any other conditions that may affect the transaction
Letter of Intent
A Letter of Intent (LOI) is a formal proposal on the intention to lease a property accompanied with certain specific requirements or conditions to the landlord. LOIs include and are not limited to:
- Particulars of the Tenant and the occupiers
- Proposed monthly rent and the lease term
- Commencement of lease and the option to renew lease
- Diplomatic or repatriate clause requirements
- Good-fath deposit (booking deposit) and security deposit
- Furnishing conditions
- Special requirements of conditions
The good-faith deposit is usually one month's proposed rental and the Landlord is deemed to have agreed on all stated conditions after accepting the good-faith deposit and endorsing on the LOI.
Tenancy Agreement
The Tenancy Agreement (TA) is a legal agreement formed after the Landlord’s acceptance of the LOI. Typical TAs explicitly spell out the obligations of Landlords and Tenants. Apart from what is stated in the LOI, the integral clauses to ascertain are as follows:
- Full particulars of the Landlord, the Tenant and the occupiers
- The final amount of security deposit
- Full conditions of the diplomatic or repatriate clause
- Subletting, temporary occupants, assignments or novations
- Rates, taxes, refund of agent's brokerage fees, stamp duty, legal fees etc
- Upkeep, maintenance and repair of the premises
- Any other special terms and conditions as may be agreed upon
The stamping duty of the TA is usually borne by the Tenant and upon stamping, the TA becomes a legally binding contract.
The Agent
Estate Agent and Salespersons' Role in Property Letting
The responsibilities of a salesperson representing a landlord include and are not limited to:
- Ensure that the landlord's interests are protected
- Assist to set statistically realistic lease price
- Implement marketing strategies
- Conduct viewings, manage liaisons, negotiations
- Negotiate for fair market purchase prices
- Prepare / Vet relevant agreements
- Obtain and verify signatories
- Ensure that agreements are proper and legally enforceable
- Arrange with the tenant or his agent for the handing over of the premises
- Assist the landlord in the provision of any special requirements as stated in the LOI
- Ensure the premises is clean and all fittings/appliances in working order for handing over
- Draw-up / Vet the hand-over inventory list
Estate Agent and Salespersons' Role in a Property Lease
The responsibilities of a salesperson representing a tenant include and are not limited to:
- Ensure that the tenant's interests are protected
- Recommend and propose suitable properties
- Arrange and schedule viewing appointments
- Ascertain accurate property ownership and relevant details
- Negotiate for fair market lease prices
- Prepare / Vet relevant agreements
- Obtain and verify signatories
- Ensure that agreements are proper and legally enforceable
- Arrange with the landlord or his agent for the taking over of the premises
- Ensure that all special requirements stated in the LOI are met
- Ensure the premises is clean and all fittings/appliances are in working order
- Draw-up / Vet the take-over inventory list
- Facilitate the payment of stamp duty
- Facilitate the application for utilities and other services
Stamp Duty
Leasing and Letting Progression
Letter of Intent
The tenant endorses on the LOI to express interest to lease together with any special requests or conditions. The LOI, accompanied by a good-faith deposit, is proposed to the Landlord for acceptance.
Tenancy Agreement
The TA is drafted for both parites to vet. Extraordinary terms and conditions will be discussed, agreed upon and inserted as clauses in the TA. Both parties will endorse on the finalized TA and the date of handing over of the premises will be determined.
Stamp Duty
The tenant proceeds to stamp the TA (within 14 days of the date of agreement) to make it legally binding.
Handing Over
The landlord prepares the premises including the agreed provisions in the LOI for handing over. An inventory list is checked through during the handover of the premises and both parties will retain a copy for future references.