{"id":7583,"date":"2021-07-05T05:00:30","date_gmt":"2021-07-04T21:00:30","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=7583"},"modified":"2024-09-17T14:08:27","modified_gmt":"2024-09-17T06:08:27","slug":"tenancy-agreement-early-termination-singapore","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/tenancy-agreement-early-termination-singapore\/","title":{"rendered":"Guide to breaking lease and early termination of tenancy agreement in Singapore"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p>In Singapore, tenancy agreements typically include a lease term of six months to two years. During this period, the tenant is legally obliged to pay the rent outlined in the&nbsp;<span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\"><a href=\"https:\/\/www.99.co\/singapore\/insider\/property-jargon-of-the-day-tenancy-agreement-ta\/\" target=\"_blank\" rel=\"noopener\">landlord&#8217;s tenancy agreement (TA)<\/a><\/span>.<\/p>\n\n\n\n<p>However, due to unforeseen circumstances, either party could need to break the lease. In this article, we explore these circumstances and their consequences so that landlords and tenants in Singapore will know what to do in the event of early termination of the tenancy agreement.<\/p>\n\n\n\n<div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><h2>Table of contents<\/h2><ul><li><a href=\"#h-what-a-tenancy-agreement-ta-entails\" data-level=\"2\">What a tenancy agreement (TA) entails<\/a><\/li><li><a href=\"#h-ending-a-tenancy-early\" data-level=\"2\">Ending a tenancy early<\/a><\/li><li><a href=\"#h-when-tenants-break-a-lease-early\" data-level=\"2\">When tenants break a lease early<\/a><ul><li><a href=\"#h-the-diplomatic-clause\" data-level=\"3\">The Diplomatic Clause<\/a><\/li><li><a href=\"#h-the-reimbursement-clause\" data-level=\"3\">The Reimbursement Clause<\/a><\/li><li><a href=\"#h-the-en-bloc-clause\" data-level=\"3\">The En Bloc Clause<\/a><\/li><li><a href=\"#h-breaking-the-lease-without-these-clauses\" data-level=\"3\">Breaking the lease without these clauses<\/a><\/li><\/ul><\/li><li><a href=\"#h-when-landlords-break-leases-early\" data-level=\"2\">When landlords break leases early<\/a><\/li><li><a href=\"#h-eviction-of-a-tenant\" data-level=\"2\">Eviction of a tenant<\/a><\/li><li><a href=\"#h-breaking-lease-equitably\" data-level=\"2\">Breaking lease equitably<\/a><\/li><li><a href=\"#h-frequently-asked-questions-faqs\" data-level=\"2\">Frequently asked questions (FAQs)<\/a><\/li><\/ul><\/div>\n\n\n<div class=\"wp-block-image wp-block-image aligncenter is-resized wp-image-9415\">\n<figure class=\"\"><img decoding=\"async\" width=\"1687\" height=\"1126\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2016\/11\/breaking-lease-early-termination.jpg\" alt=\"Person tearing a tenancy agreement. \" class=\"wp-image-9415\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2016\/11\/breaking-lease-early-termination.jpg 1687w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2016\/11\/breaking-lease-early-termination-600x400.jpg 600w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2016\/11\/breaking-lease-early-termination-940x627.jpg 940w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2016\/11\/breaking-lease-early-termination-440x294.jpg 440w\" sizes=\"(max-width: 1687px) 100vw, 1687px\" \/><figcaption class=\"wp-element-caption\">Breaking the lease and early termination of your rental contract can cause a lot of frustration and stress.<\/figcaption><\/figure><\/div>\n\n\n<p>(If you&#8217;re looking for a place to rent in Singapore, browse the latest listings of <a href=\"https:\/\/www.99.co\/singapore\/rent\" target=\"_blank\" rel=\"noopener\">units&nbsp;<\/a><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">and&nbsp;<a href=\"https:\/\/www.99.co\/singapore\/rent\/rooms\" target=\"_blank\" rel=\"noopener\">rooms for rent<\/a> <\/span>on 99.co.)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-a-tenancy-agreement-ta-entails\"><b>What a tenancy agreement (TA) entails<\/b><\/h2>\n\n\n\n<p>Tenants and landlords should be aware of the terms of the tenancy agreement before signing it. After all, the very nature of the TA is to avoid any conflict or miscommunication between both parties.<\/p>\n\n\n\n<p>(Read <a href=\"https:\/\/www.99.co\/singapore\/insider\/tenancy-agreement-and-security-deposit\/\" target=\"_blank\" rel=\"noopener\">this article<\/a> for more info about what should be included in the TA.)<\/p>\n\n\n\n<p>In most cases, the TA should contain terms that ensure the tenant(s) has exclusive possession of the property within a stipulated duration. Moreover, tenant(s) should be able to live without intrusions and disruptions to their personal space, security and\/or belongings during the period above of occupancy.<\/p>\n\n\n\n<p>On the other hand, tenants are also responsible for upholding the obligations outlined in the contract terms. Basic terms include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Rent payment for the duration of stay<\/li>\n\n\n\n<li>Upkeep and maintenance of the property<\/li>\n\n\n\n<li>An agreement not to sublet the property for personal profit<\/li>\n\n\n\n<li>An agreement to bear the burden for utilities\/repairs (unless otherwise stated)<\/li>\n\n\n\n<li>The start and end date of occupancy<\/li>\n<\/ul>\n\n\n\n<p>Check out the sample tenancy agreements for <a href=\"https:\/\/www.cea.gov.sg\/docs\/default-source\/default-document-library\/tenancy-agreement-template-for-hdb-flats.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">HDB<\/a> and <a href=\"https:\/\/www.cea.gov.sg\/docs\/default-source\/default-document-library\/tenancy-agreement-template-for-private-residential-property-2021.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">private property<\/a> to better understand the terms and clauses included.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ending-a-tenancy-early\"><b>Ending a tenancy early<\/b><\/h2>\n\n\n\n<p>Disputes often arise concerning the last point mentioned above. Once the tenancy agreement has been signed and approved, it may be terminated only when the landlord or tenant gives prior and appropriate notice.<\/p>\n\n\n\n<p>The notice period corresponds with the length of the tenancy and the rent payment frequency. The appropriate notice period should be one month in tenancies, where the rent is paid monthly. In most instances, one month is the minimum notice period.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-when-tenants-break-a-lease-early\"><b>When tenants break a lease early<\/b><\/h2>\n\n\n\n<p>Tenants should not end their tenancy prematurely without first notifying their landlords. Obtaining the landlord&#8217;s consent before vacating the premises is always advisable.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/media.giphy.com\/media\/ggE6VjTg0DPVfNj7LA\/giphy.gif\" alt=\"\"\/><\/figure><\/div>\n\n\n<p>Sometimes, the landlord may object to the tenant\u2019s request to end the tenancy if it does not comply with the TA. Hence, they may request full payment of the month&#8217;s notice or other forms of compensation if the minimum rental period or lease is not fulfilled.<\/p>\n\n\n\n<p>This is where the security deposit comes into play. Typically equivalent to one month\u2019s rent, the security deposit is often used to safeguard against early termination of a tenancy agreement in Singapore. This is in addition to paying for reparations for damages (if any) found during the tenancy.<\/p>\n\n\n\n<p><b>To avoid legal conflict, landlords should ascertain the likelihood of ending the lease early and, based on this, clearly establish the parameters for early termination terms and penalties to be specified in the TA. <\/b><\/p>\n\n\n\n<p><b>Tenants, meanwhile, should inform landlords of any factor(s) that may contribute to early termination of the lease, such as a work transfer overseas.<\/b><\/p>\n\n\n\n<p>There are instances when breaking a lease is inevitable, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Tenant relocated overseas by their company<\/li>\n\n\n\n<li>The tenant\u2019s employment terminated<\/li>\n\n\n\n<li>The tenant is ordered to leave the country by authorities (e.g. employment pass not renewed)<\/li>\n<\/ul>\n\n\n\n<p>To indemnify against monetary penalties when such issues occur, tenants should negotiate such clauses to be included in the tenancy agreement before signing it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-diplomatic-clause\"><b>The Diplomatic Clause<\/b><\/h3>\n\n\n\n<p>Because of cultural norms and public housing policy, the rental market in Singapore tends to be very expat-centric. Most tenancy agreements include a Diplomatic Clause \u2014 a Get-Out Clause or minimum rental period. These are the typical terms for a Diplomatic Clause:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Six-month lease: No Diplomatic Clause or three months minimum rental<\/li>\n\n\n\n<li>One-year lease: Six months minimum rental<\/li>\n\n\n\n<li>Two-year lease: 12 months minimum rental<\/li>\n<\/ul>\n\n\n\n<p>(The minimum period for renting an HDB room or unit is six months, while the minimum for private property rentals is three months.)<\/p>\n\n\n\n<p>Usually, the Diplomatic Clause is included in a two-year lease, with a minimum stay of one year. After that, the tenant can exercise the clause and give at least two months&#8217; notice or pay two months&#8217; rent instead of the notice.<\/p>\n\n\n\n<p>It serves as a safeguard for the tenant who may encounter unexpected changes in work arrangements. With this clause, the tenant won&#8217;t need to also provide any compensation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-reimbursement-clause\"><b>The Reimbursement Clause<\/b><\/h3>\n\n\n\n<p>Auxiliary to the Diplomatic Clause is the Reimbursement Clause. Seldom included in the TA nowadays, this clause covers fees paid to the agent by the landlord at the commencement of the lease. Upon exercising the Diplomatic Clause, the tenant is liable to reimburse the landlord pro-rata for these fees if the Reimbursement Clause is included in the TA.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-en-bloc-clause\"><b>The En Bloc Clause<\/b><\/h3>\n\n\n\n<p>The En Bloc Clause allows the landlord to terminate the lease prematurely if the entire building is sold for redevelopment. While this is relatively rare, this clause allows the landlord to end the lease early without compensating the tenant.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-breaking-the-lease-without-these-clauses\"><b>Breaking the lease without these clauses<\/b><\/h3>\n\n\n\n<p>What happens if your tenancy agreement does not include these clauses or you break your lease before the Diplomatic Clause period? What are your options, then?<\/p>\n\n\n\n<p>The Diplomatic and Reimbursement Clauses aim to ensure an equitable and fair resolution in a trying situation. Without these clauses, it is still possible to negotiate this with your landlord by understanding the losses they will incur with your early termination of rental in Singapore.<\/p>\n\n\n\n<p>Primarily, there is a loss of rental income. Finding a replacement tenant takes time and effort, and keeping the property empty would be a significant loss. To mitigate this, as a tenant, you can search for a tenant to take over your lease until the end of its term.<\/p>\n\n\n\n<p>However, before searching for a replacement tenant, ensure the landlord agrees with this arrangement. Be prepared to ensure that the replacement tenant pays the same amount of rent. Sometimes, this could entail subsidising the replacement tenant\u2019s rent until the termination of the lease.<\/p>\n\n\n\n<p>These clauses are vital to protecting yourself as a tenant. If these clauses are not in the tenancy agreement,<b> you are liable to pay for rent until the end of the lease term<\/b>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-when-landlords-break-leases-early\"><b>When landlords break leases early<\/b><\/h2>\n\n\n\n<p>Despite property law in Singapore strongly favouring the landlord over the tenant, landlords terminating the lease is a fairly rare situation. As a tenant, openly communicating with the landlord and seeking fair compensation would be the best solution for any disputes.<\/p>\n\n\n\n<p>Landlords breaking the lease should also realise the costs incurred by the tenant and compensate the tenant accordingly. In some cases, this could entail refunding the rent for the notice period the landlord provides, along with the security deposit.<\/p>\n\n\n\n<p>Legally, however, the tenant is within their rights to reside in the property until the end of the lease. If a wrongful eviction occurs, the tenant could pursue a case with the <a href=\"https:\/\/www.99.co\/singapore\/insider\/small-claims-tribunal-rental-disputes\/\" target=\"_blank\" rel=\"noopener\">Small Claims Tribunal<\/a> if the lease does not exceed two years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-eviction-of-a-tenant\"><b>Eviction of a tenant<\/b><\/h2>\n\n\n\n<p>If the terms of the tenancy agreement \u2013 such as non-payment of rent \u2013 have been breached, the landlord may choose to end the contract early and evict the tenant.<\/p>\n\n\n\n<p>To this end, it is important that the landlord expressly stipulates the right of re-entry in the TA. The landlord must also serve notice specifying the breach, the compensation sought, and the course of action they wish the tenant to take.<\/p>\n\n\n\n<p>The tenant may also apply to the courts for relief to alleviate the forfeiture of the property. The courts may then choose to give the tenant an additional amount of time to settle their affairs. In most cases, this is four weeks.<\/p>\n\n\n\n<p>A landlord may also&nbsp;<span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">invoke their right to distress under the&nbsp;<a href=\"https:\/\/sso.agc.gov.sg\/Act\/DA1934\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Distress Act<\/a>. This allows them to claim up to 12 months\u2019 arrears before the distress application. The landlord then sends<\/span> the tenant a notice of seizure of selected goods and a writ of distress to recover the unpaid rent. If the tenant does not reply within five days, the landlord may sell off their goods.<\/p>\n\n\n\n<p>In any case, consult a legal professional if unsure about your legal course of action.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-breaking-lease-equitably\"><b>Breaking lease equitably<\/b><\/h2>\n\n\n\n<p>Whether you\u2019re a tenant or a landlord, the status quo can change without warning. So, the TA must anticipate what may happen during a lease.<\/p>\n\n\n\n<p>Ultimately, it&#8217;s ideal for the landlord and tenant to be considerate towards each other. Open and honest communication is the key to a reasonable settlement with fair outcomes for all involved, without things getting ugly.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Are you terminating your lease early? Let us know in the comments section below.<\/h2>\n\n\n\n<p>If you found this article helpful, 99.co recommends&nbsp;<a href=\"https:\/\/www.99.co\/singapore\/insider\/renting-out-a-room\/\" target=\"_blank\" rel=\"noopener\">Renting out a room? 9 landlord must-dos to avoid headaches<\/a>&nbsp;and <a href=\"https:\/\/www.99.co\/singapore\/insider\/how-to-rent-out-a-condo-singapore\/\" target=\"_blank\" rel=\"noopener\">How to rent out a condo quickly in Singapore: a 7-step guide<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-faqs\"><strong>Frequently asked questions<\/strong> <strong>(FAQs)<\/strong><\/h2>\n\n\n\n<p><strong>What is a tenancy agreement (TA), and why is it important?<\/strong> <br>A tenancy agreement (TA) is a legally binding document outlining the terms and conditions of the rental arrangement between a landlord and a tenant. It is crucial as it helps to prevent conflicts and misunderstandings between both parties during the tenancy period.<\/p>\n\n\n\n<p><strong>Can a tenancy agreement be terminated before the end of the lease term?<\/strong> <br>Yes, a tenancy agreement can be terminated before the end of the lease term, but it requires prior notice from either the landlord or the tenant. The notice period typically corresponds with the tenancy period&#8217;s length and the rent payment frequency.<\/p>\n\n\n\n<p><strong>What are the consequences if a tenant breaks the lease early?<\/strong> <br>If a tenant breaks the lease early without proper notice or consent from the landlord, they may be required to compensate the landlord. This could involve forfeiting the security deposit or paying rent for the remaining period until the end of the lease term.<\/p>\n\n\n\n<p><strong>Are there any clauses that protect tenants in case of early termination of the lease?<\/strong> <br>Yes, clauses such as the Diplomatic Clause, Reimbursement Clause, and En Bloc Clause can protect tenants in case of early termination of the lease. These clauses outline the conditions and penalties for breaking the lease early and should ideally be included in the tenancy agreement.<\/p>\n\n\n\n<p><strong>What should tenants do if they need to terminate the lease early due to unforeseen circumstances?<\/strong> <br>Tenants should inform their landlords as soon as possible if they need to terminate the lease early due to unforeseen circumstances such as relocation or job loss. They should negotiate with the landlord and try to reach a fair agreement regarding compensation and early termination terms.<\/p>\n\n\n\n<p><strong>Can landlords terminate the lease early, and what are the implications?<\/strong> <br>While it&#8217;s less common, landlords can terminate the lease early under certain circumstances. However, they may need to compensate the tenant for any losses incurred. Landlords need to communicate openly with tenants and seek fair resolutions in disputes.<\/p>\n\n\n\n<p><strong>What are the legal options for tenants and landlords in case of disputes over early termination of the lease?<\/strong> <br>Tenants and landlords can seek legal advice and mediation to resolve disputes over early termination of the lease. They may also pursue legal action through the Small Claims Tribunal or the courts if necessary.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Due to unforeseen circumstances, there could be a need for the tenant or landlord breaking lease. We explore what are their consequences.<\/p>\n","protected":false},"author":17,"featured_media":60325,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"59689,50070,12264,1684,45473,3069","_relevanssi_noindex_reason":"","_lmt_disableupdate":"no","_lmt_disable":"no","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[57131,53590],"tags":[54059,53612,54060,53716,54061,53640,53701],"persona":[57126],"class_list":{"2":"type-post","17":"entry","18":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Breaking your lease: Early termination of TA in Singapore - 99.co<\/title>\n<meta name=\"description\" content=\"Thinking of breaking your tenancy lease early? 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