Diplomatic Clause

Tenancy Agreement - Diplomatic Clause

Diplomatic or Repatriate Clause:

This clause is to safe guard the tenants, in the event,  the tenant no longer employed in Singapore or  transferred to other countries, then the tenant can execute this Diplomatic clause. In general, landlords will accept the diplomatic clause if the lease term is more than a year.  If Diplomatic clause is included in Tenancy Agreement, tenant can terminate the lease after 12 months by giving 2 months notice. Thereafter, the security deposit will be refunded to tenant.  In a standard Singapore Tenancy Agreement, there is usually the reimbursement clause together with the diplomatic clause. This clause states that if you exercise the diplomatic clause, you will have to reimburse part of the commission, that the landlord had paid to his agent. To execute the Diplomatic clause, tenant must provide proof of employment transfer or cessation for  verificaiton. For the purpose of proof, a letter from the company is sometimes not enough and tenant may need to show a letter from the immigration regarding the cancellation of tenant's pass.

EXIT CLAUSE / ESCAPE CLAUSE

The Exit Clause is also known as the Escape Clause. This clause is not part of the Standard Tenancy Agreement here in Singapore. 
It is usually added in the Tenancy Agreement in case of a special request from the tenant. Sometimes the tenant may have an idea to migrate overseas or buy his own property and may not be able to commit for a longer term. 
If in case this clause has to be included, then you have to speak to your agent and get it done with a mutual consent between the landlord and the tenant through the agents and in the absence of agents between the parties in itself. 
Usually landlord's may not accept to include this clause in a one year lease as landlords feel very insecure about tenants using the premises for a short term only or as a stop gap arrangement.
If in case an exit clause is added then it is usually accompanied by the reimbursement clause as well. This clause states that if you exercise the Exit clause, you will have to reimburse part of the commission the landlord had paid to his agent.

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P. V. Ramesh Babu
Associate Marketing Director
PROPNEX REALTY PTE LTD
ramesh.res22@gmail.com
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