Diplomatic Clause

[richwang]

My British friend has signed a 2-year lease contract about 6 months ago. But his department is now sold to another company globally, and the new company decides to move office.
The place he is staying (Pasir Panjang) is not very convenient for his new office location (Tanjion Pager).
Can he use the diplomatic clause to cease the contract? He is still working in Singapore, but different company (not by his choice).
If he cannot use the diplomatic clause, can he give extra notice period (say 3 months notice) to break the contract? ... or does he need to pay 1.5 month extra rentals to terminate the 1.5 year outstanding lease?

Thanks,
Richard

[stalingrad]

My British friend has signed a 2-year lease contract about 6 months ago. But his department is now sold to another company globally, and the new company decides to move office.
The place he is staying (Pasir Panjang) is not very convenient for his new office location (Tanjion Pager).
Can he use the diplomatic clause to cease the contract? He is still working in Singapore, but different company (not by his choice).
If he cannot use the diplomatic clause, can he give extra notice period (say 3 months notice) to break the contract? ... or does he need to pay 1.5 month extra rentals to terminate the 1.5 year outstanding lease?

Thanks,
Richard
of course not. he is not a diplomat. and even diplomats can't violate lease agreements.

an expat is not a diplomat.

[gn108]

PP to TP is very near ma. Jump onto train only 20 mins. Take bus also abt there 25 min.


My British friend has signed a 2-year lease contract about 6 months ago. But his department is now sold to another company globally, and the new company decides to move office.
The place he is staying (Pasir Panjang) is not very convenient for his new office location (Tanjion Pager).
Can he use the diplomatic clause to cease the contract? He is still working in Singapore, but different company (not by his choice).
If he cannot use the diplomatic clause, can he give extra notice period (say 3 months notice) to break the contract? ... or does he need to pay 1.5 month extra rentals to terminate the 1.5 year outstanding lease?

Thanks,
Richard

[sh]

Diplomatic clause only kicks in after the 1st year and only if he gets sacked.

Talk to the landlord, offer to find him a new tenant and pay for agent fee, if he wants to get out of the contract.

[richwang]

1. Diplomatic or Escape Clause and Reimbursement Clause
Check for this clause. This clause is to safe guard you if in the event you are no longer employed, transferred to other countries, you can terminate the lease after 12 months by giving 2 months notice. Thereafter, the security deposit will be refunded to you. Please note that most landlords will only include the diplomatic clause if the lease is more than a year.
In a standard Singapore Tenancy Agreement, there is usually the reimbursement clause together with the diplomatic clause. This clause states that if you exercise the diplomatic clause, you will have to reimburse part of the commission the landlord had paid to his agent.
The reason behind this clause is that the landlord had paid the full one month's agent commission for a 2 years lease but if you terminate the lease by exercising the diplomatic clause, hence unable to complete the full 2 years, you will have to refund the pro-rata commission. Since landlord grants the diplomatic clause, they will usually demand reimbursement clause to be included in the tenancy agreement.

http://www.singaporeexpats.com/guides-for-expats/procedure-for-rental.htm

[richwang]

Well, his office was in Science Park - walking distance from where he is staying.
He is not a fan of Singapore train, and a no-no to bus.
He is thinking of buying a motor bike, but I don't think that's a safe idea.

Thanks,
Richard

[gn108]

So he'll be renting in Icon...lol.


Well, his office was in Science Park - walking distance from where he is staying.
He is not a fan of Singapore train, and a no-no to bus.
He is thinking of buying a motor bike, but I don't think that's a safe idea.

Thanks,
Richard

[chiaberry]

See if the landlord is willing to negotiate. Try offering to find a new tenant (or employ an agent to find a new tenant) and hopefully if the new tenant is at higher rental, the landlord might be willing to let him terminate the tenancy earlier without having to pay 1.5 years rent. Of course need to reimburse the pro-rated amount of the agent's commission too.

[peterng8]

that is why to all those tenants pls treat your landlords with respect...:p

never know when will need the cooperation and help...

[ysyap]

This is the real world... nothing is certain. Some nice tenants may have super evil landlords while some nice landlords may have super evil tenants... if only there are matching devices to match super nice tenants to super nice landlords and let the evil landlords deal with evil tenants! :p

[august]

for the usual 2-yr lease agreement, diplomatic clause applies only after the first yr, meaning tenant cannot break lease during the 1st yr. Doing so requires the tenant to compensate landlord for the entire 1st yr of rentals... at least thats my understanding from my agreement.

[ysyap]

That being the case, usually as a landlord I'm open for discussion and negotiation if my tenants are nice and keep my unit clean and takes care of it... always give and take in life lah... :sleep:

[chiaberry]

That being the case, usually as a landlord I'm open for discussion and negotiation if my tenants are nice and keep my unit clean and takes care of it... always give and take in life lah... :sleep:

Agreed. I have been in this situation twice as a landlord (early termination of lease). Both times I got a new tenant at higher rental so I let them break lease early (with certain conditions but not making them pay up rent till the end of the term).

[mcmlxxvi]

Well, his office was in Science Park - walking distance from where he is staying.
He is not a fan of Singapore train, and a no-no to bus.
He is thinking of buying a motor bike, but I don't think that's a safe idea.

Thanks,
Richard
Thats what cabs are for. I am sure he can afford it and its the least hassle. What is he to do with a motorbike if suddenly his company close shop?

[Laguna]

for some properties, I have waived this clause as the tenants have stayed more than 4 years.

I came across a case whereby this clauses was invoked on the ground of sending overseas, subsequently found out this tenant rented somewhere else....chase all the way for compensation....no so for monies, just need to teach them a lesson...we are not the one to be bullied

[zzz1]

Well, his office was in Science Park - walking distance from where he is staying.
He is not a fan of Singapore train, and a no-no to bus.
He is thinking of buying a motor bike, but I don't think that's a safe idea.

Thanks,
Richard
This is another want cheap, want green, want near work place..
He got to respect the agreement and commitment .
Singapore so small...must as well rent his office place as his home. That is litrally walking distance to his work place