2 Answers

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

What you are referring to is called selling with a tenancy.

A tenancy agreement protects both the landlords and tenants whereby there are terms and conditions that both parties must abide to during the rental period. This is to prevent any disputes from both parties.

A lease agreement consists of the following:
- Premises: Includes the date, name of parties and address of the property concerned
- Habendum: Meaning “to have and to hold”, indicates the commencement and duration of the lease term
- Reddendum: Rent clause in the lease. Includes rent amount, deposit, service charge, rent review
- Convenants: Expressed and implied covenants
- Conditions
- Warranty

When you sign a tenancy agreement, you have an interest in the property giving you exclusive possession for a fixed period of a certain duration, usually in consideration of a payment termed 'rent'.

The essential features of the tenancy are as follows:
- Tenant has exclusive possession of the property.
- Tenancy runs for a certain or fixed period of time.
- Landlord’s rights are subject to the tenancy.
- Landlord has reversionary interest of the property upon termination of the tenancy.

A landlord is bounded by the following covenants to a tenant:
1. Quiet enjoyment of the premises, which means tenant can enjoy the use of the premises without interference.
2. Non-derogation from the grant, landlord must observe all the terms granted to tenant.
3. Property must be fit for habitation at the start of the lease term;
4. Structure and facilities must be in good repair.
5. Good title. He is the owner and has the right to rent.
6. Pay property tax and quit rent if any
7. Exclusive possession of the premises for the fixed term, so long as the fixed term given has not expired.
8. If landlord has sold or transferred his interest, buyer or successor-in-title is bound to observe the terms of the lease granted

Under point 8 of the landlord's covenant, if the incoming landlord wishes to terminate your Tenancy Agreement, the landlord must compensate you for the unused lease term and return your security deposit.

Failing which, your landlord has broken the terms in the Tenancy Agreement.

You can take him to court for not adhering to the terms and to claim for compensation if he does not compensate you.

Hope this answers your question.

Best Regards,

Team PropertyGuru Read More


  • JK
    Thanks for your reply! When you say “compensation for the unused lease term by the incoming landlord”, exactly what does that imply? Is it the difference in the rent? Is it a negotiated sum?
Robbie Chen Chee Howe
Hi Jee Kim,

A contract is binding. The new landlord will have to honor the TA that was signed between you and the old landlord. The new landlord can only increase the rent AFTER the expiration of the 2-year lease.

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans. Please get in touch with me for a more in-depth discussion.

Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305. I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
9748 6305
PropNex Realty Read More