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Exercise of diplomatic clause: My tenant has exercised his 1+1 diplomatic clause with a notification letter from his company (it has been a corporate lease) that he will return to his home country. However, i heard from other sources that he may actually stay here (or at least, go back but then come again very soon to continue to work in SG). In my TA it says the clause can only be exercised if he left SG. How can I (1) ensure that he did leave SG for good, and (2) enforce compensation in the event he comes back from to work in SG within the remaining tenancy period?
I would need to appoint an agent to market my unit on River Valley if all is in good order and he really left for good. thanks
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3 Answers

Hi Sean,

This is very tricky. How did your source find out that he may actually stay here?

Technically, if he is on employment pass here, the moment his employment pass is terminated and he has to return to his country, this does not stop him from taking up another employment in Singapore.

As this is a corporate lease, if you are persuing this issue of whether is he leaving for good, it is likely to be a tedious process. My advise is that look at the tenancy agreement on the possibility of pro-rating back the agent fees for this transaction and move-on.

Regards,
Geryl LIM
Real Estate Consultant
CEA Reg R014783H
Mobile: +65-81577565 
Email: lim.geryl@yahoo.com.sg Read More
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P. V. Ramesh Babu
Hi, to understand more about diplomatic clause, please check below URL http://www.propertyrentalagent.com/propertyagent-faq.html Read More
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Here are some steps you can take to address the situation with your tenant exercising the diplomatic clause:

1. Verification of Departure:

Company Letter Verification: While you can't definitively confirm the tenant's future plans, you can further analyze the notification letter from his company. Look for details suggesting a permanent relocation, such as:

Transfer to the company's headquarters in the home country.
Termination of employment in Singapore.
Specific mention of a permanent move.
Departure Procedures: You can inquire about the tenant's departure procedures. This might involve:

Asking for proof of flight tickets or a cancellation of their Singapore work visa.
Checking their mail forwarding details (if applicable).
2. Open Communication:

Direct Conversation: Have an open conversation with the tenant. Express your concerns about the possibility of them returning soon and how it conflicts with the intent of the diplomatic clause as stipulated in your Tenancy Agreement (TA).
3. Revisiting the Tenancy Agreement:

Review the Diplomatic Clause: Carefully review the wording of the diplomatic clause in your TA. Does it explicitly state relocation out of Singapore as a requirement for clause activation?
Seeking Legal Advice: Consider consulting a property lawyer to understand your rights and options based on the specific wording of the clause and relevant Singapore tenancy laws.
4. Potential Solutions:

Negotiated Settlement: If the tenant plans to return to Singapore soon, you could explore a negotiated settlement. This could involve:
Shorter notice period for vacating the property.
Compensation for the inconvenience caused by the potential early re-listing of the unit.
A clause stating the tenant forfeits the right to return and occupy the unit within a specific timeframe (needs legal review for enforceability).
5. Preparing for Re-listing:

Agent Appointment: While you can't definitively confirm the tenant's departure, you can start preparing for the potential re-listing of the unit.
Gather necessary documents (photos, floor plans).
Research current market rates for similar properties in River Valley.
Identify potential real estate agents you might want to work with.
Important Note:

Enforcing strict compensation might be challenging if the TA doesn't explicitly address the scenario of a tenant returning shortly after exercising the diplomatic clause. A lawyer can advise on the legality of such clauses.
In conclusion:

Focus on verifying the tenant's departure and having open communication.
Review your TA and consider legal advice regarding the diplomatic clause.
Explore a negotiated settlement if the tenant plans a quick return.
Prepare for re-listing the unit while awaiting confirmation of the tenant's departure.

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