Types of leasing arrangements
Generally, Singapore law recognises contractual agreements (whether oral or written) under which occupation and use of real estate is let for a certain period of time. Such arrangements include both leases and licences.
Common terms in commercial leases
Lease agreements can be voidable for lack of certainty if parties' intentions are not set out in clear and express terms.
The lease agreement must contain the following:
- Details of the parties;
- Address of the demised premises;
- Rent; and
- Lease term.
Apart from the above, parties are generally free to negotiate and agree on the terms of commercial leases, including the security deposit payable by the tenant and whether the rent payable shall be fixed or adjustable during the lease term.
Most commercial leases also grant to the tenant an option to renew prior to the expiry of the lease term.
In terms of apportioning costs, the landlord is generally liable for structural repairs whereas the tenant is obliged to keep the demised premises in good and tenantable condition.