Asked by Anonymous
Hi, I would appreciate advice from experienced property agents regarding an early termination situation.
We are currently on a 2-year tenancy agreement and need to move out approximately 9 months before the contractual expiry**. We gave the landlord approximately 4 months' advance notice and also provided the profile/reference of a prospective replacement tenant.
The prospective tenant has been in discussion with the landlord's agent and the landlord is open to considering them as the replacement tenant, but has not confirmed or signed anything with them yet. The landlord has stated that they will proceed with the replacement tenant only after we agree to their proposed early-termination terms.
The landlord's proposed terms are:
1. Forfeit our entire 2-month security deposit.
2. Pay 50% of the agent's commission + GST** for the new 2-year tenancy.
3. The replacement tenant would enter into a completely new 2-year TA with the landlord.
4. The proposed new rent is approximately S$350/month higher than our current rent.
The landlord took approximately 2.5 months to respond after we first notified them of our intention to leave early.
My questions are:
* Is it legally permissible for the landlord to forfeit the entire 2-month deposit as a condition for agreeing to the early termination?
* Can the landlord also require us to pay 50% of the agent's commission + GST for the new 2-year tenancy, particularly if this is not specifically stated in our existing TA?
* If the replacement tenant eventually starts immediately after our handover, there may be no rental vacancy/loss to the landlord, and the landlord would receive approximately S$350 more per month. Does this have any relevance when determining what compensation the landlord can claim?
* Is there a distinction between reimbursing the landlord for the pro-rated portion of the original agent commission** for the unfulfilled period and making us pay 50% of the commission for an entirely new 2-year tenancy?
* Can the landlord impose these additional conditions after we have already provided substantial advance notice and a prospective replacement tenant**, or would the answer depend entirely on the wording of our existing TA?
What clauses should we specifically check in our TA regarding early termination, security deposit, replacement tenants and agent commission?
I would appreciate views from agents who have dealt with similar situations.
We are currently on a 2-year tenancy agreement and need to move out approximately 9 months before the contractual expiry**. We gave the landlord approximately 4 months' advance notice and also provided the profile/reference of a prospective replacement tenant.
The prospective tenant has been in discussion with the landlord's agent and the landlord is open to considering them as the replacement tenant, but has not confirmed or signed anything with them yet. The landlord has stated that they will proceed with the replacement tenant only after we agree to their proposed early-termination terms.
The landlord's proposed terms are:
1. Forfeit our entire 2-month security deposit.
2. Pay 50% of the agent's commission + GST** for the new 2-year tenancy.
3. The replacement tenant would enter into a completely new 2-year TA with the landlord.
4. The proposed new rent is approximately S$350/month higher than our current rent.
The landlord took approximately 2.5 months to respond after we first notified them of our intention to leave early.
My questions are:
* Is it legally permissible for the landlord to forfeit the entire 2-month deposit as a condition for agreeing to the early termination?
* Can the landlord also require us to pay 50% of the agent's commission + GST for the new 2-year tenancy, particularly if this is not specifically stated in our existing TA?
* If the replacement tenant eventually starts immediately after our handover, there may be no rental vacancy/loss to the landlord, and the landlord would receive approximately S$350 more per month. Does this have any relevance when determining what compensation the landlord can claim?
* Is there a distinction between reimbursing the landlord for the pro-rated portion of the original agent commission** for the unfulfilled period and making us pay 50% of the commission for an entirely new 2-year tenancy?
* Can the landlord impose these additional conditions after we have already provided substantial advance notice and a prospective replacement tenant**, or would the answer depend entirely on the wording of our existing TA?
What clauses should we specifically check in our TA regarding early termination, security deposit, replacement tenants and agent commission?
I would appreciate views from agents who have dealt with similar situations.
101 views
- 2 months deposited
- 2 year contract on hogher rent
- 0.5 month agent fees + GST instead of prorated agent fees for remaining contract
' Any additional cost due to damages.
Which looks like owner wants to short change the tenant for early exit