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Diplomatic Clause Singapore: How does it work?

  • June 1, 2018
  • 4 min read
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Sean

Sean has a writing experience of 3 years and is currently with Stacked Homes focused on general property research, helping to pen articles focused on condos. In his free time, he enjoys photography and coffee tasting.

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[…] of the Security Deposit, and the Landlord will reserve the rights for further compensation. ーhttps://stackedhomes.com/editorial/diplomatic-clause-singapore/ […]

Ian
Ian
3 years ago

Hi! I was wondering if the diplomatic clause would cover the situation where the tenant voluntarily resigns, instead of having his employment terminated by the employer?

Stacked Homes
Admin
3 years ago
Reply to  Ian

Hi Ian, will drop you an email about it as we’ll need to see the clause. Thanks!

Jayaraj
Jayaraj
3 years ago
Reply to  Stacked Homes

Hi Ian, I would like to get the answer for the same question. Please let me know. Thank you.

Stacked Homes
Admin
3 years ago
Reply to  Jayaraj

Hi Jayaraj, it depends on the clause. If it states that the relationship between the employer and the tenant is ceased, or terminated, it shouldn’t matter how – voluntary or not, unless stated otherwise

Park
Park
3 years ago

Hi My friend had contracted which denoting the tenant shall compensate 3 months rental fee at least regardless of the stay duration. Now he need to leave Singapore and relocate to China soon and having trouble due to this clause. is there any legal protection to protect tenant against those unfair contract?

Stacked Homes
Admin
3 years ago
Reply to  Park

Hi Park, will drop you an email about this. Thank you.

Canisa
Canisa
3 years ago

Hi!

I’ve purchased a unit with tenancy, and the tenants would like to terminate the tenancy early based on the diplomatic clause.

There is also a reimbursement agent fee clause in the tenancy agreement. May I check if the tenants are required to pay us the commission fees on a pro-rated basis, please?

Thanks so much!

Stacked Homes
Admin
3 years ago
Reply to  Canisa

Hi Casina, thanks for your question. It wouldn’t make sense to collect the agent fees or marketing-related costs here because you didn’t incur them to begin with – this was incurred by the previous landlord/owner.

Michael
Michael
2 years ago

I have had an initial 2 year lease and then two extensions of one year each on the same property. The Landlord now wants to issue another 2 year lease when it is renewed and insist on the minimum 12 months before the Diplomatic Clause kicks in. Can the Landlord insist on this ?

Stacked Homes
Admin
2 years ago
Reply to  Michael

Hey Michael, this is really negotiable. The landlord can insist on it, but you can also reject the terms and find another place to stay. Generally it’s acceptable for tenants to stay a minimum of 12 months, but considering that this is an extension, you can argue not to have this. This clause is set up to protect the landlord from having to pay so much in initial cost to procure you as a tenant. It is also set up so that you can break the lease after 12 months due to unforeseen circumstances. If this is on a rolling yearly basis, you could argue that that point is moot, and hence unnecessary. So this would just depend on your relationship with the landlord. If you’ve been paying on time and treating the place well, you should have more leverage – landlords are deathly afraid of tenants that don’t pay on time, or treat the place badly.

Irma
Irma
2 years ago

Hi, if there will be 2 tenants who signed the Letter of Intent, would that mean the diplomatic clause will only be applicable if both the signatories needs to relocate?

Matt
Matt
1 year ago

Hi Sean,
The diplomatic clause in my lease agreement is worded as under.
“Provided the Tenant has occupied the premises for a period of Six (06) months, the Tenant may exercise the diplomatic clause by giving the Landlord One (01) month notice of the Tenant’s intention to terminate the Tenancy or One (01) month’s rent in lieu of such notice if the Tenant shall be required to leave Singapore permanently or the Tenant’s employment is terminated for any reason whatsoever. The said notice must be accompanied by documentary evidence providing the event relied upon by the Tenant in the notice.”
If the lease was signed on 10-Jan-22 , then the 6th month would fall on 10-Jul-22. The tenant wishes to depart permanently Singapore on 10-May-22 and he has served me notice on 02-March-22.
Does this mean that,
(1) the rent would be payable till 10-May-22 and he will forfeit the security deposit ( equal to one month rent) only?
OR
(2) rent would be payable till 10-Jul-22 (6th month) even though he vacates on 10-May-22, but the security deposit can be offset from the rent in his favour if there is no dispute on the same.

Thanks

Janice Brydon
Janice Brydon
1 year ago

Hi Ian, question on the diplomatic clause applicability. We have been in the same property for nearly 5 years, we renewed just under 3 years ago, and at the end of the 2 year period requested an extension for 1 further year. Now we are being moved back to Australia and whilst its 1 month shy of the year, requested to invoke the diplomatic clause. I am being told by the landlord this doesn’t apply because we haven’t done a year, but I would have thought our 2 years previously would count?

Stacked Homes
Admin
1 year ago
Reply to  Janice Brydon

Hi Janice! Just a disclaimer – we’re not lawyers nor can I respond in the capacity of a legal professional by any means, this is just sharing my experience. The diplomatic clause is meant to protect the landlord in the event that you cancel too early, and also gives you the option to leave before the agreement expires. Landlords typically incur costs to procure a tenant. Some agreements are done such that the subsequent agreements are more of a renewal rather than a new tenancy agreement. The landlord can argue that you have signed a new agreement, and so agreed to a new diplomatic clause. However, in substance, it’s essentially a renewal. You could check if the landlord incurred any cost in extending your stay and offer to pay for that cost, assuming the landlord paid the agent renewal fees.

Ian
Ian
10 months ago

How does the diplomatic clause work for foreign students? What are the relevant proofs they should be showing the landlord if they have decided to invoke diplomatic clause?

Stacked Homes
Admin
10 months ago
Reply to  Ian

Hey Ian, perhaps the boilerplate clause could be edited to reflect their circumstances, as the diplomatic clause usually relates to termination of employment. It’s to protect them in the event that somehow, they aren’t able to continue your studies here after they have stayed for a minimum period specified in the contract. The proof really depends on the reason for exiting the rental arrangement.

Nish
Nish
2 months ago

Hi….
As I am no longer working here
I already paid rent and want to waive off security deposit as damage but the landlord is asking to pay one more month rent additional to deposit and also I have paid agent fee in d beginning…the clause says security deposit and balance lease to be paid at early termination…is there any way

Stacked Homes
Admin
2 months ago
Reply to  Nish

Hey Nish, we aren’t able to give legal advice. However typically the diplomatic clause would allow you to terminate the tenancy agreement if you can provide evidence that you were terminated. I’m also not sure what you mean by waive off security deposit as damage here, but typically the landlord would have 1 month’s worth of security deposit in the event that there is damage at the end of the tenancy agreement which can be used to offset those costs.

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