2 Answers

askguru expert
Hi there, thanks for writing to us on AskGuru.

A novation transfers both the rights and obligations under the contract to another party. A novation may be executed in a situation where you transfer all the tenancy rights and obligations to an incoming, replacement tenant, with the consent of the landlord. In short, a novation replaces the original party with a new party.

For a valid novation, there must be the following conditions:
1. all parties must assent to novation,
2. there must be a previously valid contract,
3. the duties provided for in the contract be extinguished immediately, and a new, enforceable contract need be created

In your case, you are the new tenant with the landlord’s consent.

Under point number 3, you will need to pay the stamp duty as the previous contract is extinguished.

Hope this answers your question.

Best Regards,

Team PropertyGuru
Geryl Lim
It is subjective to individual management office, but for cases which I have handled, the whole situation will be cleaner with a fresh TA signed and stamp duty paid.

Warmest regards,
Geryl Lim
Associate Deputy Group Director
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