First time renter

Discuss about where to live, renting a property, tenancy issues, property trend and property investment in Singapore.
Post Reply
OhNo
Newbie
Newbie
Posts: 1
Joined: Mon, 28 May 2018 6:57 pm

First time renter

Post by OhNo » Mon, 28 May 2018 7:14 pm

Hi,

I have created an account here after being a lurker for many months. As much as I have read how safe, clean, etc Singapore is, there is so much information on how to be careful not be scammed by the landlords and/or agents.

I am looking at a potential place, but it is brand new, so the valuation report is not there for the particular property to check the owner's info.(
https://mytax.iras.gov.sg/ESVWEB/defaul ... LListIntro)

Is there another place I could check? I also pulled a report for 5.5SGD from INLIS (https://www.sla.gov.sg/INLIS/) but all it gave me is an owner of the whole lot and the condo itself.


If I was being really paranoid, then I could certainly find reasons of irregularities during my search for a place. A lot of agents seem to use gmail accounts rather than professional email ones.

Do I need to check the owner's NRIC? Is there a website for that?

Also, is it mandatory to sign a letter of intent? Is it just to make sure you secure a property, but you could go straight to a TA? I fully understand you could lose the place to another tenant, but after looking for a while, it really seems like a renter's market (minus the prices)

Singapore Property Search

 

UncleSunshine
Newbie
Newbie
Posts: 3
Joined: Fri, 06 Jul 2018 3:50 pm

Re: First time renter

Post by UncleSunshine » Tue, 31 Jul 2018 7:16 am

Hello buddy, hope you have found your home!

Just putting this out there to help out fellow 1st-timers.

It is not mandatory for to sign an LOI. However, the Letter of Intent serves a series of purposes.

Firstly, it shows the landlord that you are serious in wanting to rent the unit. Secondly, it aims to secure the place, meaning that from the moment the Letter of Intent is signed, the landlord will cease to look for prospective tenants and exclusively focus on settling a deal with you.

You will also handover a good faith deposit (Also known as a booking deposit). This is a mandatory measure and serves as a financial token to credibly back your intentions.

The good faith deposit generally amounts to one month’s rent for a 12-month lease, and double for a 24-month lease. after the Tenancy agreement is signed the good faith deposit will become part of the security deposit or serve as an advance rental fee.

Importantly, before you write the Letter of Intent and transfer the good faith deposit, make absolutely sure the landlord you are dealing with is in fact the real owner of the unit.

A foolproof way to this is by e-validating someone’s ownership like you did - https://mytax.iras.gov.sg/ESVWEB/defaul ... LListIntro (the cost is S$2.50).

Subsequently, request for the landlord or the representative agent to show identification, and cross reference it to the information you acquired through the e-validation.

User avatar
Strong Eagle
Moderator
Moderator
Posts: 11650
Joined: Sat, 10 Jul 2004 12:13 am
Location: Off The Red Dot
Contact:

Re: First time renter

Post by Strong Eagle » Tue, 31 Jul 2018 8:03 am

There is nothing "mandatory" about any "good faith deposit" with a LOI. Given the behavior of far too many Singapore landlords, the wise renter will never ever give them one penny until the day the TA is signed by both parties.

The LOI has no legally enforcable weight... why on earth would you give a landlord money that you might have to fight to get back?

And why should you have to give a landlord a "good faith deposit" if he has signed the LOI? Is he so chickenshit that he will rent the place from under you if you don't give him money first? Best to find a different landlord.

UncleSunshine
Newbie
Newbie
Posts: 3
Joined: Fri, 06 Jul 2018 3:50 pm

Re: First time renter

Post by UncleSunshine » Tue, 31 Jul 2018 8:29 am

Haha, yes you're right. My apologies, it's not mandatory for the good faith deposit, it's a common practice.

The LOI has no legally enforceable weight & as mentioned, the LOI shows your intention to enter into a contract to lease the property. It is subject to the signing of the TA, and the TA should equally incorporate the requests of the LOI.

One of the reasons why you may want to give a landlord money, is to show the landlord that you are serious about renting the place.

Basically, the good faith deposit will form into your security deposit for the lease (that you have to foot anyway) when you proceed into the TA.

The good faith deposit & LOI - It's almost like proposing to your girlfriend/boyfriend with a ring - your marriage isn't not legally binding yet. The point of it is that it shows your sincerity.

User avatar
PNGMK
Moderator
Moderator
Posts: 8647
Joined: Thu, 21 Mar 2013 9:06 pm
Answers: 1
Location: Sinkapore

Re: First time renter

Post by PNGMK » Tue, 31 Jul 2018 8:38 am

Forget the LOI. IF you want the place and you have a competent agent you can sign the TA there and then and pay the first month / security deposit with a cheque or similar. If you're at all nervous about the decision don't sign the TA but ask for a copy to review and then meet again. Right now it's a renters market - no need to rush.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

Post Reply
  • Similar Topics
    Replies
    Views
    Last post

Return to “Property Talk, Housing & Rental”

Who is online

Users browsing this forum: No registered users and 0 guests