Tenancy Agreement and the Diplomatic Clause

Glossary 4 min read Last reviewed
For: Students of the marketFirst-time buyers
Source: IRAS, MAS, URA
TL;DR
A Tenancy Agreement (TA) is the legal contract between landlord and tenant setting out rent, deposit, lease term, and the responsibilities of each party. In Singapore, tenants pay stamp duty on the...
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Quick Definition
A Tenancy Agreement (TA) is the legal contract between landlord and tenant setting out rent, deposit, lease term, and the responsibilities of each party.

What Does It Mean?

Tenancy Agreement (TA)

A Tenancy Agreement (TA) is the legal contract between landlord and tenant setting out rent, deposit, lease term, and the responsibilities of each party. In Singapore, tenants pay stamp duty on the TA to IRAS, and standard terms include a security deposit (usually 1 month's rent per year of lease) and a minor-repairs clause where the tenant bears small repair costs up to a set cap.

Diplomatic Clause

A diplomatic clause is a break clause commonly included in tenancy agreements of 2 years or longer. It lets the tenant terminate the lease early — typically after a minimum 12-month occupation and with 2 months' notice — if they are required to leave Singapore (e.g. job relocation or repatriation). It protects expatriate tenants from being locked into the full term if their circumstances change.

Why It Matters

The Tenancy Agreement governs everything from your deposit to who pays for repairs, and the diplomatic clause can save an expatriate tenant thousands if they are posted away mid-lease. Reading these clauses before signing prevents the most common landlord–tenant disputes.

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Frequently Asked Questions

Who pays stamp duty on a tenancy agreement?
The tenant customarily pays the stamp duty on the tenancy agreement to IRAS, calculated on the total rent over the lease term.
What is a minor-repairs clause?
It requires the tenant to bear the cost of small repairs (e.g. below a set amount per item), while the landlord covers major repairs and fair wear and tear.
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