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Early terminating 2 years contract

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yul26
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Early terminating 2 years contract

Postby yul26 » Wed, 24 Aug 2016 5:12 pm

Hi all, I am leaving SG so have to terminate my 2-year lease. The landlord asked me to pay half a year rental to go. I suggested a new tenant but he is quite picky - he said only very good profiles otherwise refuse to take.

Actually I asked the agent if I can add a termination clause to the TA but he told me the TA is very standard and there is normally no such clause. In my contract there are clauses against me saying that the LL can recover the money if I terminate, but no such thing for the landlord. Is it fair?

After all, what should I do in the current situation. Should I consult a layer about it?

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Re: Early terminating 2 years contract

Postby singaporeflyer » Wed, 24 Aug 2016 5:21 pm

yul26 wrote:Actually I asked the agent if I can add a termination clause to the TA but he told me the TA is very standard and there is normally no such clause. In my contract there are clauses against me saying that the LL can recover the money if I terminate, but no such thing for the landlord. Is it fair?


How can you add some clauses to the TA suddenly after signing it sometime ago. Also regarding the fairness, didn't you read the TA before signing it earlier?

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Re: Early terminating 2 years contract

Postby yul26 » Wed, 24 Aug 2016 5:28 pm

Thanks for the reply. Sorry I did not make it clear, it was before I sign the contract that I asked the agent. Yes I read it. At that time I did not think I would leave Singapore so soon. However, now I have a problem of renewing my contract. It was my fault not to argue before I sign it. The past is past, my question now is how to negotiate with the landlord. What is the normal compensation for such cases?

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Re: Early terminating 2 years contract

Postby singaporeflyer » Wed, 24 Aug 2016 5:40 pm

yul26 wrote:Thanks for the reply. Sorry I did not make it clear, it was before I sign the contract that I asked the agent. Yes I read it. At that time I did not think I would leave Singapore so soon. However, now I have a problem of renewing my contract. It was my fault not to argue before I sign it. The past is past, my question now is how to negotiate with the landlord. What is the normal compensation for such cases?


Since your agreement in TA is for 2 years, do you have a diplomatic clause mentioned in it?

Best is to negotiate with the Landlord and find a tenant close to what he likes (or) to forego the deposit amount.

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Re: Early terminating 2 years contract

Postby yul26 » Wed, 24 Aug 2016 5:47 pm

singaporeflyer wrote:
yul26 wrote:Thanks for the reply. Sorry I did not make it clear, it was before I sign the contract that I asked the agent. Yes I read it. At that time I did not think I would leave Singapore so soon. However, now I have a problem of renewing my contract. It was my fault not to argue before I sign it. The past is past, my question now is how to negotiate with the landlord. What is the normal compensation for such cases?


Since your agreement in TA is for 2 years, do you have a diplomatic clause mentioned in it?

Best is to negotiate with the Landlord and find a tenant close to what he likes (or) to forego the deposit amount.


Yes. Forgoing the deposit is no problem for us. We offered more than that. But the landlord wants 4 more months' rental on top of it. Then we think that is too much. Yes I am trying to find him a replacement but who knows if it will be successful.

Unfortunately, I don't have a diplomatic clause or any termination clause in my contract. Even I have, what I heard is we still need to stay for more than 14 months right? Now it is only 4 months.

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Re: Early terminating 2 years contract

Postby yul26 » Wed, 24 Aug 2016 5:51 pm

Just try to find some reasonable reference so that I can negotiate with the landlord. We think 2 months rental on top of the deposit is the maximum we can pay. Don't know if they can accept it. I don't want to enter into any legal issue. Hopefully they can find a new tenant. But the agent told me that nowadays the rental market is declining, also given the LL's strict preference ....

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Re: Early terminating 2 years contract

Postby singaporeflyer » Wed, 24 Aug 2016 6:45 pm

yul26 wrote:Just try to find some reasonable reference so that I can negotiate with the landlord. We think 2 months rental on top of the deposit is the maximum we can pay. Don't know if they can accept it. I don't want to enter into any legal issue. Hopefully they can find a new tenant. But the agent told me that nowadays the rental market is declining, also given the LL's strict preference ....


Read the TA. It should have the payment that you should make for early termination. I don't think it is like 2-4 months, unless it was mentioned in your TA and you signed it. What I know is the maximum you will lose is the deposit. Please read through your TA first

Additionally read the below links

viewtopic.php?t=88361
viewtopic.php?t=88032

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Max Headroom
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Re: Early terminating 2 years contract

Postby Max Headroom » Wed, 24 Aug 2016 7:04 pm

A contract is a contract and even if the LL were to demand 6 months' rent in addition to forfeiting the deposit, you're obliged to cough up the money. The 4 months plus deposit he's asking are a pretty decent deal, given the current rental market. I reckon you're getting off easy.

That said, if you find a replacement tenant and your LL snubs him, then you may well have a case.

Incidentally, what's the reason you have to leave Singapore? If you've been offered employment elsewhere, why not make your new employer pay the LL?

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Re: Early terminating 2 years contract

Postby singaporeflyer » Wed, 24 Aug 2016 7:12 pm

Max Headroom wrote:A contract is a contract and even if the LL were to demand 6 months' rent in addition to forfeiting the deposit, you're obliged to cough up the money. The 4 months plus deposit he's asking are a pretty decent deal, given the current rental market.


The OP would need to pay the N months of rental as termination fees only if he has agreed to the same in the contract. But if he has done so in the contract, then it means he has not done his research when signing the TA.

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Re: Early terminating 2 years contract

Postby Max Headroom » Wed, 24 Aug 2016 7:25 pm

From what I gather, there's no dip clause in OP's lease.

In addition, in my opinion, when you've signed a 2 year contract and subsequently leave prematurely, you have to make up for the full rental balance due, unless this is addressed in the lease specifically, i.e. it's capped at, say, 6 months' rent.

Apparently, this is not the case here, however. Which means OP is in a bit of a bind, unless he can find a replacement tenant, or can somehow leverage his departure from Singapore.

Keep us posted OP.

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Re: Early terminating 2 years contract

Postby singaporeflyer » Wed, 24 Aug 2016 7:43 pm

Max Headroom wrote:From what I gather, there's no dip clause in OP's lease.

In addition, in my opinion, when you've signed a 2 year contract and subsequently leave prematurely, you have to make up for the full rental balance due, unless this is addressed in the lease specifically, i.e. it's capped at, say, 6 months' rent.

Apparently, this is not the case here, however. Which means OP is in a bit of a bind, unless he can find a replacement tenant, or can somehow leverage his departure from Singapore.

Keep us posted OP.



Even if there is no diplomatic clause, there must be a clause in the OP document for early termination like the below

written notice of [ ] days by the Tenant or the Landlord to the other or in-lieu-of notice,
a sum of Singapore Dollars equivalent to ( ) months Rent; or

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Re: Early terminating 2 years contract

Postby Max Headroom » Wed, 24 Aug 2016 7:54 pm

Yes, noted; ideally it is specified.

However, if and when there is no clause at all pertaining to early termination, the default is for the tenant to pay the balance. Anything less is up to the goodwill of the LL.

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Re: Early terminating 2 years contract

Postby singaporeflyer » Wed, 24 Aug 2016 8:08 pm

Max Headroom wrote:However, if and when there is no clause at all pertaining to early termination, the default is for the tenant to pay the balance.


I don't this so. Will wait for some of the other regulars to comment.

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Re: Early terminating 2 years contract

Postby sundaymorningstaple » Wed, 24 Aug 2016 9:04 pm

Sorry SF, from what I've heard Max is correct. If you don't have a dip clause and there is no provision for early termination, the Tenant is liable for the full term of the lease. Technically speaking. But usually there is a middle ground where the two of you can meet. Unfortunately for you, that is 10 months rent. If he wants less than that, you can't complain, but otherwise you would be splitting the difference with him and you will have learned a valuable lesson about assumptions which I guarantee you wont forget for a long time. Sadly, this is why so many Foreign employees to runners when they leave because they get duped unknowingly (usually their first foreign gig) and fail to understand or assume they are dealing with reputable people. In a courtroom you would have to pay the entire lease as there is no escape clause apparently.

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Re: Early terminating 2 years contract

Postby singaporeflyer » Wed, 24 Aug 2016 9:13 pm

sundaymorningstaple wrote:Sorry SF, from what I've heard Max is correct. If you don't have a dip clause and there is no provision for early termination, the Tenant is liable for the full term of the lease. Technically speaking. But usually there is a middle ground where the two of you can meet. Unfortunately for you, that is 10 months rent. If he wants less than that, you can't complain, but otherwise you would be splitting the difference with him and you will have learned a valuable lesson about assumptions which I guarantee you wont forget for a long time. Sadly, this is why so many Foreign employees to runners when they leave because they get duped unknowingly (usually their first foreign gig) and fail to understand or assume they are dealing with reputable people. In a courtroom you would have to pay the entire lease as there is no escape clause apparently.


@SMS, Something new that I have heard of. But as you said, looks taxing on the tenant. What happens if in case the owner asks the tenant to vacate the house in the case of sale, etc. Would be interesting to know.


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