Lesson 13

Lesson 13
Life Mastery Academy Pte Ltd. All Rights Reserved

Unit 4 –
Property Transactions, Laws and Practices
4.6 Landlord and  Understand a lease as an interest in land and its implications (cross-refer to Paper 1, Unit 2.1).
tenant law  Explain the dual relationship between landlord and tenant: privity of contract and privity of estate,
and the implications on the binding effect of their covenants on assignees.
 Distinguish fixed term lease, periodic lease, tenancy at sufferance and tenancy at will.
 Understand the essential elements of a lease and the formalities required.
 Understand the effect of dealing with a lease by assignment, subletting or novation.
 Understand option to renew and circumstances leading to the determination of a lease.
 Understand what rights and duties are implied by law on the part of the landlord and tenant
respectively.
 Explain commonly expressed terms/ covenants.
 Understand the remedies available for breach of term/covenant.
4.7 Leasing of  Understand URA guidelines on leasing of residential properties with regards to the minimum
private duration of tenancy, maximum occupancy and partitioning.
properties  Verify legal ownership of landlord.
 Verify immigration/employment status of foreign tenants.
 Be cognisant of the clauses in the letter of intent (LOI) and collection of good faith deposit or act
for landlord in finding tenants.
 Advise on the terms in the tenancy agreement to the landlord/tenant, e.g. not to use the flat for
non-residential purposes, maintenance of the flat and effects, not to assign sublet or part with
possession of the flat, etc.
 Advise client on utilities application, handing/taking over premises, and inventory.

Unit 4 –
4.8 Subletting of  Ascertain landlord’s eligibility to sublet the whole HDB flat.
HDB flats  Verify immigration/employment status of foreign tenants (refer to Unit 4.7).
 Advise landlord/tenant on HDB subletting rules including subtenants’ eligibility, maximum number
of subtenants allowed, subletting period and application for approval (for subletting of whole flat) or
registration for subletting (for subletting of rooms).
 Determine who pays for
- Stamp duty, and how and where to stamp
- Property tax and service & conservancy charges
for landlord in finding tenants
4.9 Foreign  List the statutory requirements for foreign worker accommodation.
worker  Describe the list of approved foreign worker housing provided by URA, SLA, JTC, HDB and AVA
housing and the conditions attached.
 Keep abreast of Ministry of Manpower’s rules and regulations on foreign worker housing.
 Understand Immigration Act in relation to due diligence checks against immigration offenders.

4.6 Landlord and Tenant Law
4.6.1 Lease as an Interest in Land Unit 4 Page 107
• The law recognizes different sorts of interests, called estates,
in real property. Estates are distinguished by the varying
property rights that are vested in each, and that determine the
duration and transferability of the various estates. A party
enjoying an estate is called a "tenant."
• By definition, an estate of limited duration, as set out in a
contract, is called a lease. It is between the lessee who is
granted the lease and another party called the lessor, who
granted the lease. An example, a Tenant granted a one year
lease by the landlord.
• When executing a lease, a landlord and tenant develop what is
referred to as privity of estate (a relationship based on the
tenant’s occupancy of the landlord’s property) and privity of
contract (a relationship based on the contract that is entered
into between the landlord and the tenant). The creates a dual
relationship between Landlord and Tenant.

4.6.2 Dual Relationship Between Landlord and
Tenant Unit 4 Page 108
• In the following section, we will discuss on what it means as
well as the implications on the binding effect of their covenants
on assigness.
• Privity refers to a connection or bond between parties to a particular
transaction.
• Privity of Contract is the relationship that exists between two or more
parties to an agreement. In the case of a Lease, it would be the
relationship created between the Landlord and Tenant within the Lease
Agreement.
• Privity of Estate is a "mutual or successive relation to the same right in
property", such as the relationship between a landlord and tenant. It
can also mean the burden that comes with the Title of property, to
whoever that owns the property. Privity of estate involves rights and
duties:
• that run with the land,
• that original parties intend to bind successors, and
• that touch and concern the land.

Assignment of Lease
• A transfer by the original tenant (the assignor) of his or her rights to a sub-tenant
(the assignee) to use the leased property. In such an arrangement, the assignor
remains liable under the original lease contract unless expressly released by the
landlord.
• At the onset of the lease, the landlord can go after the tenant for any covenants that
“run with the land” based on privity of estate, and the landlord can go after the
tenant for any personal covenants based on privity of contract.
• Once the tenant assigns its leasehold interest to an assignee, the original tenant no
longer has the right to occupy its premises and therefore no longer has privity of
estate with the landlord. However, unless the landlord expressly releases the
original tenant from its obligations under the lease, privity of contract continues to
exist between the landlord and the tenant. The landlord can pursue all remedies set
forth in the lease against the original tenant based on a violation of the original
contract terms.
• When the original tenant assigns its leasehold interest to its assignee, the assignee
occupies the premises and therefore establishes privity of estate with the landlord.
The landlord can therefore go after the assignee if any of the covenants that run
with the land are violated including the payment of rent and taxes, the obligation to
repair the premises, and many other covenants contained in the lease. However,
unless the assignee expressly assumes all obligations under the lease, the
assignee is not liable for a breach of any personal covenant. The assignee’s liability
will also end (absent the existence of fraud) once the assignee assigns the
leasehold interest to a third party as privity of estate will end.

4.6.3 Types of Lease and Tenancy Unit 4 Page 110
• Fixed term lease

• Periodic lease
• Tenancy at Sufferance and Tenancy at Will
Note: For leases exceeding 7 years, it has to be BY DEED

and in writing. Leases which are 7 years or shorter may be
created by verbal agreement as long as intention is clear.
There is no legal requirement to register such lease.

4.6.4 Essential Elements Of Lease And
Formalities Required Unit 4 Page 111
• Parties- The parties to a lease are the lessor and the lessee. The lessor is also
called the landlord and the lessee the tenant.
• Subject matter of lease- The subject matter of lease must be immovable
property. The word "immovable property" may not be only house, land but also
benefits to arise out of land, right to collect fruit of a garden, right to extract
coal or minerals, hats, rights of ferries, fisheries or market dues.
• Duration (term) of lease- The right to enjoy the property must be transferred for
a certain time, express or implied or in perpetuity.
• Consideration - The consideration for lease is either premium or rent, which is
the price paid or promised in consideration of the demise.
• Sub-lease- A lessee can transfer the whole or any part of his interest in the
property by sub-lease. However, this right is subject to the contract to the
contrary and he can be restrained by the contract from transferring his lease
by sub-letting. The lessee can create sub-leases for different parts of the
demised premises. The sub-lessee gets the rights, subject to the covenants,
terms and conditions in the lease deed.

Essential Elements Of Leases
• Names of the parties of the agreement.

• The starting date and duration of the agreement.
• Identifies the specific object (e.g. address) being leased.
• Provides conditions for renewal or non-renewal.
• Has a specific consideration (a lump sum, or periodic payments) for
granting the use of this object.
• Has provisions for a security deposit and terms for its return.
• May have a specific list of conditions which are therein described as
Default Conditions and specific Remedies.
• May have other specific conditions placed upon the parties such as:
• Need to provide insurance for loss.
• Restrictive use.
• Which party is responsible for maintenance.
• All kinds of personal property (e.g.: cars, furniture,...) or real property (raw
land, apartments, single family homes, and business property (including
wholesale and retail)) may be leased. As a result of the lease, the owner
(lessor) grants the use of the stated property to the lessee.

4.6.5 Assignment, Subletting and Novation
• Subletting
• Assignment (covered earlier)
• Novation

4.6.6 Option to Renew and Determination of
Lease Unit 4 Page 113
• Found in a Lease Agreement
• landlord offers the tenant the option to either renew the lease
or to terminate the tenancy once the current lease expires. The
most important aspect of this clause is that it gives the tenant,
not the landlord, the option to continue the tenancy.
• It is also important to note that there are certain circumstances
that will lead to the determination (the end of a right) of a
Lease, namely:
• Frustration - where the premises have been destroyed, the
land has been resumed, or there has been an armed invasion,
and the lease can no longer continue
• By Notice - A lease may be determined by notice pursuant to
an express provision in the lease.

4.6.7 Rights And Duties (Landlord) Unit 4 Page 113
Rights include:
• Right to receive rent
• Right to evict, to re-enter and terminate the lease when the rent is in arrears for 30 days or
more or when there is a breach of any covenant lasting 30 days after notice has been
given.
• Right to enter the premises, after giving 2 days notice, to inspect the premises for repairs.
• Right to enter the premises to comply with any notices served by any public authority or
any statutory requirement such as checking for illegal immigrants.
Duties include:
• Duty to deliver possession
• Covenant of quiet enjoyment
• Implied Warranty of Habitability
• The landlord must not do any act which may render the premises “substantially less fit for
the purposes for which they were let”
• Landlord is to be responsible for all external and structural repairs of the premises.
• Where a landlord has covenanted to repair and, having been notified by the tenant of the
need for certain repairs, fails to carry them out, the tenant is entitled to arrange to have the
repair work done and deduct to cost from future payments of rent.

4.6.7 Rights And Duties (Tenant)
• The rights for Tenants are derived from Landlord’s duties.

Duties:
• Pay the rent on time and in the way outlined in the tenancy;
• Abide by the terms of the tenancy agreement e.g. not have pets or bring other
people in to live without firstly asking permission of the lessor/agent;
• Keep the place reasonably clean;
• Prevent damage to the premises. The tenant should not intentionally, maliciously or
negligently damage the premises or allow guests or visitors to cause damage.
• The tenant should leave the premises in the same state it was in when they moved
in, as detailed in the Inventory List , excluding fair wear and tear.
• The tenant must notify the lessor/agent of any damage as soon as possible;
• Use the premises for legal purposes only;
• Respect neighbours rights by not causing or permitting a nuisance or interfering
with the reasonable peace, comfort or privacy of neighbours; and
• Seek approval for any change in the tenants or number of people living in the
premises.

Fair Wear and Tear
• Unavoidable deterioration in the dwelling and its fixtures resulting from normal use.
Examples of Normal Wear and Tear:
• A few small nail holes in the walls from hanging pictures.
• A few small stains on the carpet.
• A small amount of mildew forming in grout lines in the shower tiles.
• Dirty grout.
• Tarnish on bathroom fixtures.
• Loose handles or doors on kitchen or bathroom cabinets.
Damage:
• Multiple/large holes in the walls.
• Huge stains or holes in carpet.
• Extensive water damage to hardwood floors.
• Missing outlet covers.
• Missing or damaged smoke or carbon monoxide detectors.
• Cracked kitchen or bathroom countertop.
• Broken bathroom vanity.
• Broken windows.
• Broken doors.
• Keys not returned at end of tenancy.

4.6.7 Commonly Expressed Terms/Covenants
Unit 4 Page 115
• Landlord is to pay all taxes, rate, assessments, conservancy charges and outgoings
in respect of the Flat except such as are hereinbefore agreed to be paid by the
Tenant.
• Provided that the Tenant shall punctually pay the Rent hereby reserved and observe
and perform the conditions on his part to be observed and performed, the Tenant
shall peaceably HOLD AND ENJOY the Flat and Effects during the Term without
any interruption by the Landlord.
• That the Landlord shall on the written request of Tenant made not less than One (1)
month before the expiration of the Term and if there shall not at the time of such
request be any existing breach or non-observance of any of the conditions of this
Agreement, grant to the Tenant an extension not exceeding One (1) year from the
expiration of the Term upon the same terms and conditions as contained herein
SUBJECT ONLY to the right of the Landlord to review the Rent payable to a scale
equivalent to the then market value.
• To insure the Flat against loss by fire and to pay all premium necessary punctually.
• To issue receipts for rent, Deposit and any other payments made by the Tenant to
the Landlord forthwith.

4.6.8 Remedies for Breach of Term/Covenant
(Landlord) Unit 4 Page 115
• The landlord may sue the tenant for the arrears in rent. The
action must be brought within six years of the date that the
arrears became due.
• If there is a forfeiture clause in the tenancy, the landlord may
re-enter and re-possess the premises and evict the tenant.
• The landlord may choose to evict the tenant through the legal
process. It will involve the landlord applying to the Court for a
Writ of Possession to repossess the premises and evict the
tenant. This is a legal order that forces the tenant to leave and
allows the landlord to take control of the property. The law
requires that the rent must be at least 2 months outstanding
before such an application is allowed.

(Landlord) (Cont’d)
• The landlord has the option to apply to the Court for a Writ of Distress to seize
goods to the value of the rents owned, provided the outstanding amount claimed
does not exceed 1 year’s rental. Once the write of Distress is issued, the Court will
direct the sheriff or bailiff to enter the premises to seize the goods in the premises to
the value of the outstanding rent. If the tenant fails to pay within 5 days after the
seizure, the goods will be sold by auction. Certain things like his personal clothing,
bedding and tools for his business cannot be seized for room rental in Singapore.
The proceeds from the auction sale can be used to offset the claim amount.
• Another common breach of contract by the tenant is the premature termination of
the lease of room rental in Singapore. Under Common Law, the landlord shall
mitigate his losses by using his best endeavour to find a replacement tenant and
may thereafter claim for all his losses and damages as follows:
• If the lease remains empty for a certain number of months after the breach, then the landlord
would have suffered a loss of $X in rent.
• If the new rental from a replacement tenant is lower by $Y compared to the previous rent,
the landlord would have suffered another loss of $Y for the rest of the term.
• If the landlord has to engage a salesperson to look for a replacement tenant, the landlord
would suffer another loss of $Z in the form of commission paid.
• The landlord may use the security deposit to offset against all the above losses. If the losses
exceed the security deposit, the landlord may choose to make a legal claim through the
Court for the balance.

(Tenant) (Cont’d)
• In the event that the landlord fails in the rightful duties and rendering the
property to be uninhabitable, Tenant may use constructive eviction clause. In
this case, the Tenant may terminate the lease and seek damages
• In the event where Tenant is not evicted, Tenant may also seek other remedies
of relief from paying rent.

4.7 Leasing of Private Properties
4.7.1 URA Guidelines on Residential Leasing
Unit 4 Page 117
• Private residential properties or their rooms within the premises should
not be rented out on a short-term basis for less than 6 months on a
daily/weekly/monthly basis
• Leasing of the whole unit or subletting of rooms for residential purposes is
only allowed for long-term stays of 6 months or more (capped at 7 years)
if these conditions are met:
• No internal partitioning works that alter the layout of the property to
create more rooms. Safety concerns
• In the case of master tenancies or en-bloc leasing-out, there should
only be 1 single tenancy agreement per residential unit to cover the
number of occupants for the unit. This does not apply to a single
property or individual owner who leases out rooms within his unit to
different tenants
• Each occupant should have at least 10 sqm of space. The maximum
number of occupants in a residential unit is 8, no matter how big the
unit is
• includes the owner if he is living within the premises
• does not apply if the unit is occupied by a family without any
subletting.

4.7.2 Landlord Legal Ownership
• Documentary proof of flat ownership which includes the

Agreement for Lease, Service & Conservancy charges booklet,
Annual or Loan instalment payment booklet/Annual Loan
statements, bearing the name of the flat owner
• Check through INLIS (Integrated Land Information Service)
website for Property Ownership Information
• Check through IRAS – e-Valuation list
• For tenants, you are reminded to conduct the 3 compulsory

checks stated under Anti-Harbouring (ICA).

• 4.7.3 Letter Of Intent
(covered together under Unit 4.8.2 Lease of HDB
Flat)
• 4.7.4 Tenancy Agreement
(covered together under Unit 4.8.2 Lease of HDB
Flat)

4.7.5 Practical Aspect of Leasing
Unit 4 Page 117
Utility Application
• The installation charges and the monthly bills for the following
services are the tenant's responsibility (RES can assist):
• SP Services - the water and electricity supply
• City gas - piped gas in selected areas.
• Singapore Telecom- residential telephone line.
• Starhub Cable Vision (SCV) - cable television and cable broadband
internet.
Handing/Taking Over Premises
• Assist tenant to check the items listed in the inventory list (prepared
by Landlord) to ensure all electrical appliances, air-con, lightings,
water heater etc, are present and in working condition.
• If there is anything unsatisfactory, RES may assist to note it down on
the inventory list and allow the landlord to rectify it within a reasonable
period.

4.8 Subletting Of Whole HDB Flats
4.8.1 Ascertain Landlord’s Eligibility
Unit 4 Page 118
Citizenship
• Flat owners who wish to sublet their flat must be a Singapore Citizen
(SC). Singapore Permanent Resident (SPR) flat owners are not allowed
to sublet their flat.
Minimum Occupation Period
• SC flat owners who wish to sublet their flat must meet a 3 or 5-year
Minimum Occupation Period (MOP) as follows:
• 3 years
• Non-subsidised flat (flat purchased from the open market without a CPF
housing grant) and the application to buy the flat was received by HDB
before 30 Aug 2010.
• 5 years
• Non-subsidised flat (flat purchased from the open market without a CPF
housing grant) and the application to buy the flat was received by HDB on
or after 30 Aug 2010.
• Subsidised flat (flat purchased directly from HDB or from the open market
with a CPF housing grant)

4.8.1 Ascertain Landlord’s Eligibility (Cont’d)
Non-Citizen (NC)^ Subletting Quota
• Subletting of a flat to one or more non-Malaysian NCs is
subject to the NC Subletting Quota. The NC subletting quota is
set at 8% and 11% at the neighbourhood and block level
respectively. It applies to subtenants who are Singapore
Permanent Residents and foreigners, but not to Malaysians.
The NC subletting quota also does not apply to the subletting
of bedrooms.
• When the NC Subletting Quota in a neighbourhood and/or
block is reached, flat owners there cannot apply to sublet their
flat to any non-Malaysian NCs. They can only sublet their flat
to Singaporeans and Malaysians.
• e-Service on the HDB InfoWEB
^ This refers to Singapore Permanent Residents and foreigners
(excluding Malaysians for both groups).

4.8.1 Ascertain Landlord’s Eligibility (Cont’d)
Conditions for subtenants
Citizenship
• Subtenants must be:
• Singapore citizens; or
• Singapore permanent residents; or
• Non-citizens legally residing in Singapore who are holders of:
• Employment Passes,
• S Passes, Work Permits*,
• Student Passes,
• Dependant Passes, or
• Long-Term Social Visit Passes.
All passes must have a validity period of at least 6 months as at the date of
subletting application**.
*Construction workers who are Work Permit holders should be Malaysians.
** Tourists are not allowed to rent HDB flats

Maximum Number of Subtenants
Flat Type Total Number of

Occupants
1-room and 2-room 4 persons
3-room 6 persons
4-room and bigger 9 persons

Tenancy/Property Ownership Status
• Subtenants must not be tenants/owners of other HDB

flats except for :
• Tenants/owners who are divorced/legally separated
• Only one of the divorced/legally separated parties may be a
subtenant
• Owners who are eligible to sublet their whole HDB flat
• They must sublet their own flat within 1 month after having
rented a flat from another flat owner
• Subtenants must not be owners of Executive
Condominium units where the 5-year minimum
occupation period has not been met.
• Subtenants must not be tourists.

Period of Subletting
• Not allowed to sublet the flat on a short term basis.

• The period of subletting to each subtenant per
application must not be less than 6 months.
• Maximum subletting period allowed is 3 years per
application or as indicated in the approval letter,
whichever is shorter.
• However, for subletting involving non-Malaysian NC
subtenants, the period of subletting per application is 1.5
years or as indicated in the approval letter, whichever is
shorter. NCs refer to Singapore Permanent Residents
and foreigners. Application is required for every renewal
of tenancy.

Subletting
Costs Involved In Subletting

• Flat owners who are subletting their flats are to pay an Admin
Fee of $20 for each application. Renewals are treated as new
applications and the same fee is required.
Apply For Approval

• In facilitating a HDB sublet, HDB’s approval must be sought
first. Applicant can be made through owner’s My HDBPage or
by physical application form from any HDB Branch or online.
• If the flat owner is overseas during the subletting period, there
must be a properly appointed Attorney to act for him in the
management of the flat. A certified true copy of the Power of
Attorney (POA), prepared in accordance with HDB's standard
format and which has been lodged with the High Court, must
be furnished.

4.8 Subletting Of Whole HDB Rooms
Unit 4 Page 121
• Citizenship and Tenancy/Property Ownership Status

condition is the same as per subletting of entire flat.
• Only for Flat owners of 3-room or bigger flats and require
no prior approval from HDB.
• Must register with HDB within 7 days from the
commencement date of the subletting and to notify HDB
when they renew or terminate the subletting and when
there are changes to their subtenants’ particulars within 7
days from their occurrence.
• All HDB subletting rules and regulations apply.

Maximum Number of Subtenants
Flat Type Maximum Number of Maximum Number of

Bedrooms Occupants*
Allowed for Subletting Allowed in Each Flat
3-room 1 bedroom 6 persons
4-room 2 bedrooms 9 persons
5-room 2 bedrooms 9 persons
Executive 2 bedrooms 9 persons

Terms and Conditions
• Flat owners and their authorised occupiers must continue to live in the flat with the
subtenants during the period of subletting. In the event that the flat owners and
authorised occupiers do not live in the flat, the registration for the subletting of
rooms shall be revoked automatically and the subletting will be deemed as
subletting of the whole flat without HDB’s approval and appropriate action will be
taken against the flat owners under the Housing & Development Act.
• As a flat owner subletting your bedroom, you will be responsible for making sure
that:
• The bedroom is sublet to eligible subtenants only.
• There is no overcrowding and that the number of subtenants do not exceed the
maximum number allowed.
• Your subtenant do not further sublet the bedrooms to other persons.
• Your subtenants have entered and are remaining in Singapore lawfully at all times
while the subletting is in force.
• Your subtenants comply with all the covenants in the lease and the provisions of the
Housing & Development Act and that you are responsible for all infringements, if any,
committed by them.
• Owners are responsible for surrendering the flat to HDB if the flat is repossessed by
HDB.

4.8.2 Letter Of Intent (LOI) Unit 4 Page 122
• Formal letter presented by a tenant to a landlord, proposing an offer to rent a

residential property. If the landlord signs the letter, it is taken as an official sign
of acceptance.
• Includes intention to rent the property and conditions usually agreed on.
• The first deposit made by the tenant, also known as a good faith deposit or a
booking deposit, usually amounts to one month's rent. When a landlord
accepts the deposit, and has signed a tenant's Letter of Intent, he or she has
essentially promised not to offer the property to lease to other prospective
tenants until a Tenancy Agreement has been signed. After the Tenancy
Agreement has been signed, the deposit can be kept either as payment for the
first month's rent or as a security deposit.
• A security deposit is a deposit made by a tenant after a Tenancy Agreement
has been signed. It is kept by the landlord and is only returned to the tenant
when his or her term of lease expires. While in the safekeeping of the landlord,
the security deposit is not subject to any interest rate and should be refunded
to the tenant interest-free.

4.8.3 Tenancy Agreement
• Prepared by the landlord, or representing RES.

• Dictates the landlord's obligation to lease the property to a tenant,
and both the tenant and the landlord are required to sign the
agreement.
• A far more detailed version of the Letter of Intent.
• During the signing of TA, the tenant is also required to provide the
landlord with a copy of his or her passport and identification card
or employment pass, if he or she is a foreigner.
• Necessary for the landlord to verify that the tenant is allowed to
stay in Singapore
• Upon signing the Tenancy Agreement, the tenant must pay the
sum of the first month's rent and the security deposit, less the
booking deposit made with the signing of the Letter of Intent.

Key Areas of Tenancy Agreement
• Tenant's identification details

• Landlord's identification details
• Redddendum - Terms of payment which includes
details such as the date the rent, payment schedule,
mode of payment, service charges as well as
Security deposit. It may also cover the rent review
clause.
• Habendum – This clause describes the term of
lease, commencement date and begins with “To
have and to hold”.

Key Areas of Tenancy Agreement (Cont’d)
• Inventory of contents or inventory list, which is a

supplement of the Tenancy Agreement. The
inventory of contents lists all furniture and fittings in
the rental property as they are in their present
condition. RES must note that this has to be signed
by the tenant when he or she moves into the rental
property, as an indication that the landlord has
provided the furniture and fittings as stated in the
inventory of contents, and signed by the landlord will
sign this list when the tenant moves out.

• En-bloc. Just as we discussed earlier, if the tenant is

renting a housing unit in a condominium or a private
apartment, there might be an en bloc clause to
protect the landlord from the necessity of
compensation in the event of early contract
termination.
• Tenant is not allowed to use flat for non-residential
(i.e. business) purposes. In addition, Tenants are not
allowed to assign sublet (part with possession) the
HDB flat.

• Other clauses which RES should be familiar of

include:
• Diplomatic clause - An “escape” clause for expatriate
tenants to terminate the tenancy before expiry. Reason is
usually because of work assignment or layoff by employer
• Escalation clause allows a guarantee to a change in the
agreement rent once a particular factor beyond control of
either party affecting the value has been determined.
• Forfeiture clause - A breach of the covenant against
assignment may result in the termination of the tenancy,
normally an action for possession and an end to tenant's
interest.


include: (Cont’d)
• Minor Repair clause stipulates the responsibility of who will
bear the repair cost. It usually comprises of an ‘amount in
excess’ over which the landlord will have to pay the
difference. Typically, below the stipulated amount, the tenant
will bear the repair cost without bothering the landlord. The
tenant can only claim the difference ‘per item, per incident’
• Constructive Eviction Clause allows tenant to break lease in
the event that the landlord has failed to keep the premises in
habitable condition.


include: (Cont’d)
• Not To Commit Waste’ Clause states that a tenant is under
covenant not to do things or omit to do things that can cause
the value of the rented property to diminish.
• Non-disturbance Clause (Consent from mortgagee) - If
lease is mortgaged, bank need not recognized the lease
unless it is authorized by the bank or by law or the bank
consents to the lease. Otherwise the tenant can be evicted
by bank if landlord were to default in the mortgage or upon
bank’s foreclosure

4.9 Foreign Worker Housing
4.9.1 Statutory Requirements Unit 4 Page 124
• Under the guidelines and enforcement of MOM - Employment
of Foreign Manpower (Work Passes) regulations
• Responsibility of employers to ensure acceptable
accommodation for foreign workers
• Statutory requirements include:
• Proper land use by the Urban Redevelopment Authority (URA),
Housing Development Board (HDB) or Jurong Town
Corporation (JTC);
• Building structural safety standards by the Building and
Construction Authority (BCA);
• Fire and safety standards by the Singapore Civil Defence
Force (SCDF);
• Environmental health requirements by the National
Environment Agency (NEA); and
• Drainage and sanitary/sewerage system requirements by the
Public Utilities Board (PUB).

4.9.2 List of Approved Housing
Unit 4 Page 124
• Commercially Operated Dormitories & Converted

Industrial Premises
• Quarters on Construction Sites & Temporary Workers
Quarters on Temporary Occupation Licence (TOL) sites
• Housing Development Board flats
• Private Residential Premises
• Workers Quarters at farms
• Harbourcraft

4.9.3 Diligence Checks against immigration
offenders
• Under the Immigration Act, it is a mandatory requirement for RES and
landlord to perform 3 due diligence checks again immigration offenders.
The 3 MANDATORY checks are:
• Check his ORIGINAL immigration pass and/or work pass
• Cross-check the particulars of his pass against the particulars on his
ORIGINAL passport
• Verify the validity of his pass either by checking with the issuing authority,
which is the Immigration & Checkpoints Authority OR the Ministry of
Manpower.
• If anyone is guilty (either intentionally or unintentionally) of harbouring
illegal immigrant or an over-stayer, the Landlord / Agent can be
imprisoned for 6 months to 2 years and or Fine up to $6000.
• In addition, HDB will compulsory acquire the flat under the Housing &
Development Act if illegal immigrants are found in HDB flat.

Any Questions?

Recap Unit 4 –
4.6 Landlord and  Understand a lease as an interest in land and its implications (cross-refer to Paper 1, Unit 2.1).
tenant law  Explain the dual relationship between landlord and tenant: privity of contract and privity of estate,
and the implications on the binding effect of their covenants on assignees.
 Distinguish fixed term lease, periodic lease, tenancy at sufferance and tenancy at will.
 Understand the essential elements of a lease and the formalities required.
 Understand the effect of dealing with a lease by assignment, subletting or novation.
 Understand option to renew and circumstances leading to the determination of a lease.
 Understand what rights and duties are implied by law on the part of the landlord and tenant
respectively.
 Explain commonly expressed terms/ covenants.
 Understand the remedies available for breach of term/covenant.
4.7 Leasing of  Understand URA guidelines on leasing of residential properties with regards to the minimum
private duration of tenancy, maximum occupancy and partitioning.
properties  Verify legal ownership of landlord.
 Verify immigration/employment status of foreign tenants.
for landlord in finding tenants.
 Advise client on utilities application, handing/taking over premises, and inventory.

Recap Unit 4 –
4.8 Subletting of  Ascertain landlord’s eligibility to sublet the whole HDB flat.
HDB flats  Verify immigration/employment status of foreign tenants (refer to Unit 4.7).
 Advise landlord/tenant on HDB subletting rules including subtenants’ eligibility, maximum number
of subtenants allowed, subletting period and application for approval (for subletting of whole flat) or
registration for subletting (for subletting of rooms).
 Determine who pays for
- Stamp duty, and how and where to stamp
- Property tax and service & conservancy charges
for landlord in finding tenants
4.9 Foreign  List the statutory requirements for foreign worker accommodation.
worker  Describe the list of approved foreign worker housing provided by URA, SLA, JTC, HDB and AVA
housing and the conditions attached.
 Keep abreast of Ministry of Manpower’s rules and regulations on foreign worker housing.
 Understand Immigration Act in relation to due diligence checks against immigration offenders.

End of Lesson 13

Lesson 13 - Landlord and Tenant Law

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• Fixed term lease

Note: For leases exceeding 7 years, it has to be BY DEED

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• Names of the parties of the agreement.

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• The rights for Tenants are derived from Landlord’s duties.

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• Documentary proof of flat ownership which includes the

• For tenants, you are reminded to conduct the 3 compulsory

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Flat Type Total Number of

4-room and bigger 9 persons

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• Subtenants must not be tenants/owners of other HDB

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• Not allowed to sublet the flat on a short term basis.

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Costs Involved In Subletting

Apply For Approval

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• Citizenship and Tenancy/Property Ownership Status

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Flat Type Maximum Number of Maximum Number of

4-room 2 bedrooms 9 persons

5-room 2 bedrooms 9 persons

Executive 2 bedrooms 9 persons

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• Formal letter presented by a tenant to a landlord, proposing an offer to rent a

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• Prepared by the landlord, or representing RES.

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• Tenant's identification details

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• Inventory of contents or inventory list, which is a

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• En-bloc. Just as we discussed earlier, if the tenant is

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• Other clauses which RES should be familiar of

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