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Propnex Read More

Hi,

Yes, it is quite common in Singapore for a good-faith deposit, sometimes referred to as a booking deposit, to be paid before the Tenancy Agreement is signed.

Typically, the tenant submits a Letter of Intent (LOI), and once the landlord accepts the offer, the good-faith deposit is paid to secure the property. The Tenancy Agreement can be prepared and signed subsequently.

However, the most important thing is to ensure that you are paying the rightful property owner.

Before transferring the money, I would suggest checking:

1. Whether the landlord has accepted your offer and the agreed terms are documented.
2. Whether the person receiving the payment is genuinely the property owner or someone properly authorised to receive it.
3. Whether the PayNow recipient's name matches the verified payee.
4. Whether the deposit will be credited towards the security deposit or first month's rental, and what happens if the Tenancy Agreement is not eventually signed.

Do not transfer money to an unfamiliar third-party account simply because someone tells you to do so.

May I know whether you have already signed a Letter of Intent and whether you are dealing directly with the landlord or through a property agent?

If an agent is involved, has the agent explained the payment process and helped verify the landlord's identity and payment details?

There is nothing inherently unusual about paying a good-faith deposit before signing the Tenancy Agreement. The important thing is to make sure the transaction is genuine, properly documented and that your money reaches the rightful party.

Geryl Lim
 9278 7772  Read More

Hi, PayNow is only the payment method; it does not establish that the rental or recipient is genuine. I would not transfer money until the ownership/authority and the written basis for the payment have been verified.

A payment before the full tenancy agreement may be proposed under an LOI, but you should understand the agreed rent, term, start date, what the deposit secures, when it is refundable and how it will be credited. Read the actual document before paying.

Verify the landlord independently, match the PayNow recipient with the authorised payee and retain the receipt. CEA recommends checking ownership through the appropriate HDB or SLA records. If an agent is involved, verify them through CEA’s official register using independently obtained contact details. Have you viewed the property and received an LOI or any written terms?

Silas Tan | Huttons | TRIBE
Free property guides and calculators: https://tribesg.com Read More

**Wait. Never transfer a deposit without signed paperwork first.**

While paying a **1-month "Good Faith Deposit" (booking deposit)** via PayNow before the full Tenancy Agreement (TA) is signed is standard in Singapore, it must strictly accompany a signed **Letter of Intent (LOI)**.

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### 1. The Standard Rental Sequence

* **Step 1 — Sign the Letter of Intent (LOI):** The LOI records key terms (rent, lease duration, handover date, repair caps, and furniture requests) and binds the landlord to stop marketing the unit. Only *after* signing the LOI do you transfer the 1-month Good Faith Deposit.
* **Step 2 — Sign the Tenancy Agreement (TA):** Within 3 to 7 days, the landlord prepares the formal TA. Once signed, your Good Faith Deposit converts into your first month’s advance rent (or security deposit), and you pay the remaining security deposit.

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### 2. Essential Protections Before You PayNow

* **No LOI, No Money:** Transferring money blindly without an LOI or TA leaves you with zero legal protection if the landlord changes the rent, inserts unfair clauses, or disappears.
* **Verify Ownership & CEA Registration:** Confirm the landlord owns the property (via an IRAS property tax bill or SLA INLIS ownership check) and verify any agent on the **CEA Public Register**.
* **Pay Directly to the Landlord:** Always PayNow directly to the legal owner’s account—never to an agent’s personal account—and state the unit address in the transfer reference.

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Gan Eng Joo Onassis 颜荣裕, REALTOR®

MSc BIT (Middlesex, UK); BBA (UniSA)

CEA Reg No: R021244C | Mobile: (+65) 8889 9918 

Email: onassis@sgagent.com

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