Lawful Early Termination: A Tenant’s Guide.

A Tenancy Agreement typically specifies a fixed term to which both the Landlord and Tenant are obligated. In Singapore, expatriates commonly sign agreements for a period of two years (24 months). Expatriates holding a working visa such as an Employment Pass, or other long-term residency status, are generally eligible for an exit provision known as the Diplomatic Clause within the Tenancy Agreement.

The Diplomatic Clause allows tenants to end their lease agreement before the committed term. To use this clause, tenants must fulfill several conditions: typically, a minimum stay (usually half the lease term), providing written notice to the landlord along with rental compensation for the notice period, and presenting proof of departure from the country, such as a cancelled residency permit.

If a tenant cannot meet all these requirements due to certain circumstances, one option is to continue paying rent until the end of the notice period. However, this can result in a significant loss since the tenant would be paying rent without occupying the property.

Our experience over the years includes many such cases where we assist tenants and landlords in reaching a mutually agreeable exit solution. This often means the tenant leaves without penalty, and the landlord maintains consistent rental income.

We frequently handle premature lease terminations that lead to amicable outcomes.