Tenancy Agreement in Singapore: Understanding the Diplomatic Clause
When it comes to renting a property in Singapore, a tenancy agreement is a legally binding document that sets out the terms and conditions between the landlord and tenant. The agreement usually includes clauses that govern rental amount, the lease period, maintenance responsibilities, and other crucial details.
One such important clause that tenants, especially expats, need to be aware of is the diplomatic clause. This clause usually applies to expatriates and diplomats who are relocated to Singapore for a fixed period.
What is the Diplomatic Clause?
The diplomatic clause is a legal provision that allows the tenant to break the tenancy agreement before its expiry date, without incurring any penalty, if they need to leave Singapore due to certain unforeseen circumstances.
These circumstances include:
1. Re-assignment to another country by the employer
2. Termination of employment
3. Medical reasons
4. Family emergencies
5. Other unforeseen events beyond the tenant`s control
How does the Diplomatic Clause work?
If you are a tenant who needs to invoke the diplomatic clause, you must inform your landlord as soon as possible and provide the relevant documentation to prove your circumstances. Once the landlord approves your request, you will need to vacate the property within a specified notice period, usually two months.
The notice period may vary according to individual tenancy agreements, so it`s essential to read the terms carefully before signing the contract.
It`s important to note that the diplomatic clause does not apply to tenants who choose to terminate their lease early for personal reasons, such as buying a property or relocating for personal reasons not related to employment.
Why is the Diplomatic Clause important?
For expat tenants, the diplomatic clause provides an added layer of protection and flexibility in their tenancy agreement. It gives them peace of mind knowing that they can leave Singapore if certain circumstances arise, without incurring any financial penalty.
On the other hand, landlords may view the diplomatic clause as a risk because it provides tenants with the option to terminate the lease early. Hence, landlords may seek to negotiate rental rates and other terms to minimize their risks.
In conclusion, when signing a tenancy agreement in Singapore, it`s crucial to understand the diplomatic clause and its implications. As a tenant, it gives you flexibility, while as a landlord, it`s advisable to negotiate terms that protect your interests. With these considerations in mind, tenants and landlords can enter into a tenancy agreement that is beneficial to both parties.