Diplomatic Break Clause Tenancy Agreement

Due to cultural norms and public housing policy, Singapore`s rental market tends to be highly expatriate. This is the reason why most leases contain a withdrawal clause – also known as a diplomatic clause or minimum rental term. These are the typical conditions of an exit clause: adding a diplomatic clause to the lease can facilitate the termination of a lease; However, a court decision is still needed. Such a diplomatic clause must provide for two conditions: that the leased property be evacuated if the lessor wishes to reside in the leased property himself at the end of the rental period agreed in the contract. And that the landlord has a legitimate interest in the lease ending. The court will only make a decision on the termination of the lease if both elements are included in the clause. Such a diplomatic clause is often used by Dutch nationals who live and work temporarily abroad; They will most often rent their home and want to make sure that once their detachment is over, they can force the tenant to leave if the pressure comes. A diplomatic clause can also serve the interests of a tenant. In most cases, such a clause means that the tenant can terminate the lease before the originally agreed date of termination of the contract. A discussion on diplomatic clauses would be incomplete without some examples clauses. Here are two examples: „The tenant can terminate this contract after six (6) months after the execution of this contract (which avoids any doubt of the 1st.

October 20XX) if the tenant is forced to leave Bangkok due to unforeseeable circumstances that are not controlled by the tenant. In this case, the tenant must give the lessor at least thirty (30) days` notice in writing. As you know, no job in the world is completely safe or permanent. So, if you have managed to find a job in Singapore, it is also possible that you will be transferred or even worse fired! In such circumstances, it will definitely be a pain you won`t want to deal with if you have to cover the rest of your lease. Hence the importance of the diplomatic clause! Some of the usual terms used in rental agreements with brief explanations of what they mean are listed below: – Hello Jayaraj, it depends on the clause. If it is said that the relationship between the employer and the tenant is over or over, no matter how – voluntary or not, unless otherwise stated A withdrawal clause gives the landlord the opportunity to re-enter the rented property, resume the lease and terminate if the tenant violates the terms of the rental agreement…

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