What is tenancy agreement?

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What is tenancy agreement?

New postby Rosli » Sun Dec 28, 2008 6:11 pm

It is a agreement to lease the property between landlords and tenants. Some points to take note of when writing the tenancy agreement:

Rental Amount - Check the rental amount to make sure that everything is in the correct amount.

Term of Lease - The standard lease period is 1 year or more, with or without an option to renew the lease.

Diplomatic or Escape Clause and Reimbursement Clause - The Diplomatic Clause is to make you more secure. If it happens that you get unemployed or transferred overseas, you can terminate the lease after a period of 12 months, provided that you give a 2 months' advance notice. Therefore, the security deposit that you paid will be refunded to you.

However, most landlords will only include the diplomatic clause or repatriate clause if the lease is a year or more. In a standard Singapore Tenancy Agreement, there is usually the reimbursement clause together with the diplomatic clause. This clause states that if you exercise the diplomatic clause, you will have to reimburse part of the commission the landlord had paid to his agent. Public Utilities, Telephone and Cable Television

- Tenants should take responsibility on monthly bills and services of the following:
• City gas - piped gas in selected areas.
• SP Services - the water and electricity supply.
• Starhub Cable Vision (SCV) - cable television and cable broadband Internet.
• Singapore Telecom- residential telephone line.

Repairs and Maintenance - Tenants who carry out minor repairs for maintaining the leased premise are to bear the cost on their own. However, the landlord will pay major repairs and maintenance expenses exceeding $100 or $150. This is provided that the damage or malfunction of appliances is not caused by the tenant's negligence.

Stamp Duty - In Singapore, the Tenancy Agreement will need to be stamped by the Inland Revenue Authority of Singapore as only then it can be considered a valid contract as evidence in court for any disputes that may arise in the future. This protects the interests of both the landlord and the tenant.

Ensure that all your requirements and requests are stated in the Tenancy Agreement clearly. After the landlord had signed the Tenancy Agreement, he is bound by the Agrement to provide your requests.

Only those over 21 years can sign the tenancy (rental) agreement. For those below 21 years, a guard or a guarantor/sponsor should sign the agreement of hiring as well as the occupant.
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Rosli

 

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