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My friend is a tenant of a shop in the housing estate. He had just renew his tenancy agreement with the landlord however, he is thinking of giving up his business and would like to offer his place to someone else, can he ask for a takeover fee? is he allowed to do that and what are the procedures and cost involved.
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2 Answers

Hi sir/mdm

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Koh Zhen Hon
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In Singapore, your friend (the tenant) generally cannot ask for a takeover fee from a new tenant when giving up his shop space in the housing estate. Here's why:

* **Tenancy Agreement:** The terms of takeover fees are typically not included in standard HDB shop tenancy agreements.

* **Rights and Obligations:** The tenancy agreement establishes the rights and obligations between the landlord and your friend (the tenant). It doesn't grant your friend the right to find a replacement tenant or charge a fee for doing so.

**Alternatives for Your Friend:**

* **Negotiate with Landlord:** Your friend could try negotiating with the landlord to release him from the remaining lease term. The landlord might be willing to find a new tenant and potentially waive some termination fees in exchange for early vacancy.

* **HDB Subletting Scheme:** In some cases, HDB allows subletting of shop spaces with specific approval. However, this process involves restrictions and requires permission from both the landlord and HDB.

**Recommendations:**

* **Review Tenancy Agreement:** Carefully review your friend's tenancy agreement to see if there are any clauses related to assignment or subletting.

* **Contact HDB:** For specific guidance, your friend can contact the HDB branch that manages the housing estate for clarification on subletting regulations.

* **Open Communication:** Maintain open communication with the landlord throughout the process. Explain the situation and explore options that are mutually beneficial.

**Remember:** There's no guaranteed way to recoup any setup costs or lost profits when ending a tenancy early. It's best to explore options within the tenancy agreement and communicate openly with the landlord.
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