Queries on tenancy agreement

[archkc]

Hi,

We have received a draft tenancy agreement and find it quite different to the usual ones we have signed so far. Can someone please help understand a few of these points?

1. In the event that Goods and Services Tax (“the GST”) is imposed or charged by the
government or tax authority on any sums received or receivable by the Landlord under this
Tenancy Agreement, the Tenant shall be liable to pay the GST in the manner and within the
period prescribed in accordance with the applicable laws. Where the Tenant defaults in such
GST payment, the Landlord may make payment of the same and claim the equivalent amount
from the Tenant as a debt due.

Does this imply we may be asked to pay a sum in addition to the rent as GST? Aren't rentals exempt from GST?

2.It is expressly agreed without prejudice to any of the provision of this lease, the
Lessor may determine the term hereby created absolutely upon receipt of written or
confirmation notice from the relevant Authority or enter into any contact for Land
Acquisition or Enbloc Sale respectively of this premise by giving not less than two months
(2) advance notice in writing to the Lessee. The Lessee shall co-operate with the Lessor to
allow access to the premise at reasonable times by prior appointment for the viewing,
evaluation or other matters of the same purpose.

Does this mean the landlord will give us two months notice in case he chooses to sell the house and we need to leave?

Please help clarify at the earliest as we need to decide if we want to take up the house or not.

[PNGMK]

1. No GST is currently levied (and not expected to be) but the LL is playing safe.
2. LL is playing safe here as well - it sounds as though LL expects a potential sale enblock - FYI for an en bloc sale no inspection would really be necessary and it takes forever.

I would ask to strike out both clauses and see what happens regardless or look elsewhere. The LL is pushing all the risk on you for nothing back in return.

[archkc]

1. No GST is currently levied (and not expected to be) but the LL is playing safe.
2. LL is playing safe here as well - it sounds as though LL expects a potential sale enblock - FYI for an en bloc sale no inspection would really be necessary and it takes forever.

I would ask to strike out both clauses and see what happens regardless or look elsewhere. The LL is pushing all the risk on you for nothing back in return.

Thanks. The LL is a lawyer. The whole agreement seems too jargonish to decipher. Will mention that.

In the event that the service charges levied upon the Landlord by the developer or
management corporation is increased, the Tenant will pay the said increase upon notice by
the Landlord.

Any thoughts on this? This is a freehold condominium. It almost seems like he is expecting an increase here too.

[Strong Eagle]

In the event that the service charges levied upon the Landlord by the developer or
management corporation is increased, the Tenant will pay the said increase upon notice by
the Landlord.

Your LL is really pushing on this one and I would reject it out of hand. He wants you to ensure his profit margins are maintained by agreeing to pay more rent, should his own expenses increase.

[PNGMK]

In the event that the service charges levied upon the Landlord by the developer or
management corporation is increased, the Tenant will pay the said increase upon notice by
the Landlord.

Your LL is really pushing on this one and I would reject it out of hand. He wants you to ensure his profit margins are maintained by agreeing to pay more rent, should his own expenses increase.

Agreed - don't accept this. You should be paying rent fixed at a monthly rate for a fixed term. Any cost increases are his to cover.

[x9200]

I see these clauses around for many years already and although I agree this is about pushing the risk to the tenant so are many other "standard" clauses in the typical TA - for example on force majeure.

How likely is the GST or any other taxes affecting the rent going to happen for this sort of transactions? Is the building old and at risk of an enbloc sale? If the answer to the questions is, unlikely, I would not oppose too much. Normally, there are many other clauses far more risky and potentially damaging than these two.

If one is really paranoid, for the first clause, a right of termination of the lease may be added in case any changes to the payable amount happen.

[Strong Eagle]

I suppose that if the landlord is desirous of these clauses you could always offer up a few of your own as "compensation". For example, most leases have very draconian early termination clauses. See if you could sweeten it up more to your liking in exchange for accepting the other clauses. Maybe the LL likes horsetrading.

[archkc]

So we wrote to them and they have agreed to make a few changes

The En Bloc and GST thing will stay though. however the point on tenant forking additional charges has been changed to saying tenant is not liable for additional ones.

This property is also listed for sale. The LL has included a clause on us permitting for viewings. Now, we aren't okay with that in the initial months so we had asked for those to be restricted to the last 2 months of the tenure. He hasn't agreed but has come back asking for it to be held in three days notice after 6pm. not very comfortable with that trying to negotiate on it else will have to let go and find a way to get deposit back.

Thanks everyone!

[archkc]

I am not sure of the likelihood of GST. Ok En bloc, quite unlikely as the unit is close to a already planned and in construction MRT and its TOP 2000, so not too old too.

[archkc]

(c)​ Not to do or suffer or permit to be done anything whereby the policy or policies of insurance in respect of the said premises or any part thereof against loss or damage by fire may become void or voidable or whereby the rate of premium thereon may be increased and to repay the Landlord all sums paid by way of increased premiums and all expenses incurred by them in or about the renewal of such policy or policies rendered necessary by a breach of this Agreement.


On this, he says it's standard.Is that so? We don't know what's the current premium.

[ecureilx]

(c)​ Not to do or suffer or permit to be done anything whereby the policy or policies of insurance in respect of the said premises or any part thereof against loss or damage by fire may become void or voidable or whereby the rate of premium thereon may be increased and to repay the Landlord all sums paid by way of increased premiums and all expenses incurred by them in or about the renewal of such policy or policies rendered necessary by a breach of this Agreement.


On this, he says it's standard.Is that so? We don't know what's the current premium.

if you want to take this LL for a ride, engage a lawyer and rip him off.

Nothing standard.

IN fact, he wants to be in a win-win deal, which is right, as, after all he is a lawyer, and wants to win it all.

Alas, he can't do it all the time I guess.

And for Insurance, NO, NOOOO, so long here I can't recall ANY agreement that had such dubious clause about insurance.

so if the previous tenant did something and after you signed up, the premium went up, you pay for it ?

Or if the LL decided he needs a better plan, you pay for it ?

Jeez, you are in a big soup. get out of it NOW.

[x9200]

(c)​ Not to do or suffer or permit to be done anything whereby the policy or policies of insurance in respect of the said premises or any part thereof against loss or damage by fire may become void or voidable or whereby the rate of premium thereon may be increased and to repay the Landlord all sums paid by way of increased premiums and all expenses incurred by them in or about the renewal of such policy or policies rendered necessary by a breach of this Agreement.


On this, he says it's standard.Is that so? We don't know what's the current premium.

Let's not use the word "standard" but typical. Yes, it is, but I always modify this clause adding at the end something similar to this: ...always provided that the content/wording of the said policy or policies are made known to the tenant.

BTW, your LL passed the basic test. If s/he didn't accept taking out the GST clause I would see it as a warning sign indicating some potential risks much higher than the clause itself.

[archkc]

What could be the potential issue? Any thoughts?

I have pressed again for it to be removed. The bigger concern for me is having viewings on a day's notice and the property marketed for sale now.

They must decide if they want to put it for sale or lease it to a new tenant.

The GST thing, from what I asked is not typical but also not something that's likely to cause an issue in one year. My concern is if this is in some way connected to the planned sale.

[PNGMK]

What could be the potential issue? Any thoughts?

I have pressed again for it to be removed. The bigger concern for me is having viewings on a day's notice and the property marketed for sale now.

They must decide if they want to put it for sale or lease it to a new tenant.

The GST thing, from what I asked is not typical but also not something that's likely to cause an issue in one year. My concern is if this is in some way connected to the planned sale.

The market does not move fast here. I've known people who have lived in apartments supposedly for sale for 4 years. It's probably not going to sell but the hassle....

[Strong Eagle]

What could be the potential issue? Any thoughts?

The potential issue is that your LL is showing signs of being a complete son-of-a-bitch, who will nickle and dime you to death, who will take forever to actually fix things when they break, and who will accuse you of breaking it, who will blame you for every bit of wear and tear as "tenant damage" and who will refuse to return so much as five cents of your deposit, claiming it is all needed to fix the mess you left behind. There are a large number of these miserable human beings in Singapore who seem to figure they can screw expat tenants with alacrity.

One question though... how in the world did you end up paying a deposit before you signed the TA? This is an utter no-no in Singapore regardless of what the agents say. Did you sign a letter of intent and have an agent tell you it had to be backed up by a deposit? The LOI is a meaningless document and you my have to threaten court to get your deposit back.