Rent Diplomatic Clause Singapore: How does it work?

  • June 1, 2018
  • 5 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

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
Stacked Homes

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

Jayaraj
Jayaraj

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

Stacked Homes
Stacked Homes

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

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
Stacked Homes

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

Canisa
Canisa

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
Stacked Homes

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

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
Stacked Homes

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… Read more »

Irma
Irma

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

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.”… Read more »

Janice Brydon
Janice Brydon

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
Stacked Homes

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… Read more »

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