Renting a HDB

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tropicalstorm
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Renting a HDB

Post by tropicalstorm » Mon, 12 Jan 2015 3:48 pm

Hi,

I have been renting a HDB for the past 18 months. The contract I signed states that I rented it for a period of 18 months with a "firm extension" of 6 months after that.

I wish to leave the HDB soon, which will be the 18 month mark. What does "firm extension" actually mean? I have found someone to take over the lease but am being charged fees for the handover.

I understand that HDBs can't legally be rented for longer than 18 months at a time. Should I have to pay these handover fees or am I legally "free" after the 18 month period?

Thanks in advance for your help!

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x9200
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Re: Renting a HDB

Post by x9200 » Tue, 13 Jan 2015 5:35 am

tropicalstorm wrote:Hi,

I have been renting a HDB for the past 18 months. The contract I signed states that I rented it for a period of 18 months with a "firm extension" of 6 months after that.

I wish to leave the HDB soon, which will be the 18 month mark. What does "firm extension" actually mean? I have found someone to take over the lease but am being charged fees for the handover.

I understand that HDBs can't legally be rented for longer than 18 months at a time. Should I have to pay these handover fees or am I legally "free" after the 18 month period?

Thanks in advance for your help!
May I ask for a reason why you don't want to continue with the lease (assuming HDB further agrees for the 18++ period)?
Has the LL paid anything to the agent? If yes, was it for 24 or 18 months?
What are the handover fees you mentioned?

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JR8
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Re: Renting a HDB

Post by JR8 » Tue, 13 Jan 2015 10:18 am

If HDB say you can't rent for longer than 18 months, then that means what it says. This "firm extension" you mention sounds like a pretty typical 'mom and pop' device to try and get around those rules.

Did you pay Stamp Duty on the Tenancy Agreement that incorporates this term? Did the landlord provide you with a copy of the thus stamped document?

That is the starting point to considering the situation further.
'Do it or do not do it: You will regret both' - Kierkegaard

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zzm9980
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Re: Renting a HDB

Post by zzm9980 » Tue, 13 Jan 2015 10:42 am

"Firm extension" sounds like a way to force you into a 24 month lease while working around HDB's 18 month requirement. I'm skeptical if this is enforceable. If you want out, I would call HDB and ask about it.

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Re: Renting a HDB

Post by zzm9980 » Tue, 13 Jan 2015 10:43 am

JR8 wrote:If HDB say you can't rent for longer than 18 months, then that means what it says. This "firm extension" you mention sounds like a pretty typical 'mom and pop' device to try and get around those rules.

Did you pay Stamp Duty on the Tenancy Agreement that incorporates this term? Did the landlord provide you with a copy of the thus stamped document?

That is the starting point to considering the situation further.
^- what Jr8 said.

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Re: Renting a HDB

Post by tropicalstorm » Tue, 13 Jan 2015 3:59 pm

Thanks for your help!

I just found this on the HDB website:

Maximum Subletting Period
The maximum subletting period allowed is 3 years per application or as indicated in the approval letter, whichever is shorter. However, for subletting involving non-Malaysian NC subtenants, the period of subletting per application is 1.5 years or as indicated in the approval letter, whichever is shorter. NCs refer to Singapore Permanent Residents and foreigners. You are required to apply each time you sublet your flat or when you renew the subletting tenancy.


I am a foreigner so shouldn't be subletting for longer than 18 months. However, it does state in my contract that I was letting for 18 months with a firm extension of 6 months. I did sign the contract, but it sounds like this firm extension is more of a goodwill gesture than anything. The HDB website states they will not get involved with any disputes between landlords and tenants.

Should I have to pay an early termination fee?

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Re: Renting a HDB

Post by zzm9980 » Wed, 14 Jan 2015 12:08 pm

tropicalstorm wrote:Thanks for your help!

I just found this on the HDB website:

Maximum Subletting Period
The maximum subletting period allowed is 3 years per application or as indicated in the approval letter, whichever is shorter. However, for subletting involving non-Malaysian NC subtenants, the period of subletting per application is 1.5 years or as indicated in the approval letter, whichever is shorter. NCs refer to Singapore Permanent Residents and foreigners. You are required to apply each time you sublet your flat or when you renew the subletting tenancy.


I am a foreigner so shouldn't be subletting for longer than 18 months. However, it does state in my contract that I was letting for 18 months with a firm extension of 6 months. I did sign the contract, but it sounds like this firm extension is more of a goodwill gesture than anything. The HDB website states they will not get involved with any disputes between landlords and tenants.

Should I have to pay an early termination fee?
I would personally fight it, and point to this on the HDB web site. Their case is very shaky at best, and I don't think they'll take it to court.

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Re: Renting a HDB

Post by x9200 » Thu, 15 Jan 2015 7:09 am

OP as you did not bother to answer any question it is just a guess only but one of the scenario is the LL keeping your deposit so it would be you going to the court. In the court the LL says, of course this extension was subject to the HDB approval and if not approved (how likely?) the extension would be void but these considerations are irrelevant as the tenant refused to take part in the extension process what he was obliged to do under the TA he signed. His action in the first place prevented me from obtaining the approval.

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