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To buy a tenanted house with option to renew stated in the existing Tenancy Agreement, am I obligated to the current tenant to extend lease for another year if they want to renew when the lease expire? I want to buy for own stay, i can wait for lease expire but i do not want to renew the lease when the lease expire.

I need to pay 1% for the option. How much minimum cash do I need to pay during the time when I exercise the option for a 1mil house.
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2 Answers

Ivan Ng
Replied
Hi,

It depends on what is inked in the Tenancy Agreement (whether automatic renewal is written inside). Usually, the clause will be where the landlord has the right to choose whether to renew or not.

When you exercise the OTP, another 4% is payable. For private properties, buyers usually do not pay commission. Thanks and may I assist further?

Warm regards
Ivan ERA
 97432395 
Ivanng10@gmail.com
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Aaron Chong
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Hi Mr J T, since you are buying for one stay, you could just inform the tenant that you would not be renewing the lease and that they would have to move upon the expiry of the lease. For purchasing of private property, cash needed will be the 5% of the purchase price, $2500 for the legal fee, 3% stamp duty if you are a local, 15% is by cpf + cash, remaining 80% is the bank loan. Pls feel free to let me know if you require more assistance.

Regards
Aaron
 97308455 
aaronchong2774@yahoo.com.sg Read More
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