INTRODUCTION

Singapore laws relating to landlords and tenants are mainly derived from statutory provisions under the Conveyancing and Law of Property Act, Chapter 61 (“CLPA”) and under common law which is based historically on English laws. Over the years, we have also evolved a body of local case laws based on decisions made by Singapore Courts.

When are contracts for leases enforceable?

If an agreement for a lease is for more than 7 years, they must be in the form of a deed as stated in section 53(1) of the CLPA, otherwise they are void. An agreement for a period of less than seven years should still be evidenced in writing under section 6B of the Civil Law Act to be enforceable in law.

An oral agreement for a lease coupled with part performance by the tenant will also render the lease enforceable. The part performance will have to be a clear act to show that there was an agreement to rent the premises, for instance, doing renovations to the office. But payment of a rental deposit will not be sufficient.

A letter agreement to execute a formal agreement for a lease will also be enforceable if it sets out the basic terms of the lease agreement.

What are the basic rights of the tenant?

Your rights are usually expressly provided in the lease agreement.  However, the common law will imply certain rights even if these are not specifically provided in the lease agreement.  Some examples are the implied covenants for quiet enjoyment of the premises, which means that you can enjoy the use of the premises without interference. Other implied covenants are that there shall be no derogation from the grant. That means all the terms granted to you must be fully observed by the landlord. The implied covenant for good title and possession of the premises for the fixed term is yet another. So long as the fixed term given has not expired, the original parties to the lease agreement have to fulfil their respective obligations.

Under section 11 of the CLPA, it is specifically provided by the law that even if a landlord has sold or transferred his interest in the freehold or the remainder of whatever rights he may have in the property, the buyer or successor-in-title shall be bound to observe the terms of the lease granted to the tenant.

Does the landlord or new owner of the property have the right to terminate your lease?

A lease can be lawfully terminated in some of the following ways:-

1.         By expiry of the fixed term in the Lease Agreement

This is obvious. A lease automatically terminates when the term has expired, unless there is an option to renew for a further period which was exercised by the Tenant.

2.         By express power

This is where a clause is provided in the agreement allowing either party to terminate the lease before the end of the fixed term on the happening of certain events.

3.         By surrender of the unexpired term

This occurs when the tenant gives notice to the landlord that he will surrender the lease even though the term of the lease has not yet expired, and the landlord accepts the surrender of the lease. The surrender can be by express words of the tenant or by operation of law.  The latter happens if the tenant either accepts a new lease or gives up possession of the premises even though he does not have to.

4.         By forfeiture

This is where a term of the lease allows the landlord to end the lease in the event of certain breaches by the tenant, for example, using the premises for an unlawful purpose.

5.         By notice to quit

In any lease including one for a fixed term, there must be a clause clearly allowing for this right to be exercised.

Under section 72 of the CLPA, any notice to be given under a lease must be in writing, including a notice to quit.

CONCLUSION

Subject to the above, should a landlord give a notice to quit before a lease has expired, which is not in accordance with express rights given under the fixed term lease, the landlord would be in breach of the agreement and be liable for damages and compensation to the tenant.  If he takes over the premises, he can be liable additionally for damages for trespass.

If there is any doubt or ambiguity as to whether any term gives the Landlord the right to terminate, the term will be interpreted against the Landlord under the “contra proferentum” rule.

It is therefore advisable that unless the tenant is clear on his rights, he should not either surrender the lease by any notice in writing to the Landlord or by giving up possession of the premises before expiry of the term.  He should do so only if damages or compensation or other suitable terms have been mutually agreed upon.