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Early termination of TA / Diplomatic clause

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YoungKim
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Early termination of TA / Diplomatic clause

Post by YoungKim » Tue, 28 Nov 2023 11:23 am

If I have lived in the same house in Singapore, does the diplomatic clause follow the residence period or the contract period?

Specifically, it is as follows.
1. I have been living in the same house for all of these years (2019-present).
2. The TA contract for the 2019-2021 period was 1 year + 1 year option, and there was no diplomatic clause. We agreed to a one-year extension, so we stayed there for a total of two years.
3. The new TA for the 2021-2023 period was signed with a 2-year + 1-year option, and a diplomatic clause was included. Additionally, we agreed on an option to extend this TA for one year, and are currently living there.

By the way, there is a possibility that I will be assigned to another country next year.
(A) I would like to apply for another one-year TA extension to inherit the TA for the period 2021-2023.
(B) In addition, we would like to discuss with the landlord to add a 2 month notice termination clause.

Of course, whether (A) and (B) reach an agreement will likely depend heavily on the rental price agreement. If the rental price is reasonably agreed upon, are (A) and (B) above generally acceptable conditions from the landlord's perspective?

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Re: Early termination of TA / Diplomatic clause

Post by YoungKim » Thu, 14 Dec 2023 10:18 am

May I have any advices, please?

Pal
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Re: Early termination of TA / Diplomatic clause

Post by Pal » Thu, 14 Dec 2023 11:29 am

Since you have stayed in the premises so many years and with renewals and extensions. It is reasonable for Tenant to request for 2 months notice termination.

Although in Singapore's market practice, the diplomatic clause usually needs you to stay half of the lease period then give 2 months notice. Hence, your Landlord may only grant you 6+2 months minimum stay. Furthermore, Landlord may want a new 2 years lease and not so keen on the 1 year extension.
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