Taste SpreadTenancy Agreement CEA: What You Need to Know
A tenancy agreement or lease agreement is a legal document that outlines the terms and conditions of a rental agreement between a landlord and tenant. One important aspect of a tenancy agreement is the consumer protection provisions set by the Council for Estate Agencies (CEA).
In Singapore, the CEA regulates the activities of estate agents and salespersons, and this includes landlords and property managers who handle rental transactions. As a result, the CEA has set consumer protection measures for tenancy agreements to ensure that tenants are not subjected to unfair or unreasonable terms.
Here are the tenancy agreement CEA provisions you need to know:
1. Security Deposit
Landlords are allowed to collect a security deposit from tenants, which is usually equivalent to one or two months’ rent. The security deposit should be held by the landlord or agent in a so-called “stakeholder account” with a licensed bank. The deposit should also be returned to the tenant upon the end of the lease period, subject to condition of the property.
2. Stamp Duty
In Singapore, tenancy agreements are subject to stamp duty, which is a tax on legal documents. The stamp duty is payable by the tenant and must be paid within 14 days from the start of the lease. The amount of stamp duty is calculated based on the rental amount, the lease period, and the type of property.
3. Rent Payment
The tenancy agreement should specify the rental amount, payment due date, and payment mode. The agreed rent should also be reasonable and in line with market rates. Any late payment charges should not exceed 3% of the rental amount and should not be charged until the rent is more than 14 days overdue.
4. Maintenance and Repairs
The tenancy agreement should also specify the responsibilities of both the landlord and tenant with regards to maintenance and repairs. The landlord is responsible for maintaining the property in a reasonable state of repair, while the tenant is responsible for keeping the property clean and tidy and for reporting any defects or damage.
5. Termination and Renewal
The tenancy agreement should also state the notice period required for termination and renewal. Typically, the notice period is 1-2 months before the end of the lease. The landlord should also not unreasonably withhold consent to a renewal, subject to conditions agreed upon by both parties.
6. Early Termination
In the event of early termination, the tenancy agreement may provide for penalties or compensation payable by the party ending the lease prematurely. However, the penalties should not be excessive and should be reasonable in relation to the cost and effort involved in finding a replacement tenant.
7. Furnishings and Appliances
If the property is rented with furnishings or appliances, the tenancy agreement should state the condition of the items and who is responsible for maintaining or repairing them. The landlord should also ensure that the items are safe for use, and any defects or hazards should be rectified promptly.
8. Renewal Options
In some cases, the tenancy agreement may include an option for renewal. The renewal option should be clearly stated in the agreement, and the rental amount for the renewal period should also be specified. The renewal option should be exercised before the end of the lease period.
9. Dispute Resolution
In the event of a dispute between the landlord and the tenant, the dispute resolution mechanism should be stated in the tenancy agreement. This could be through mediation, arbitration, or court proceedings, depending on the agreement between the parties.
10. Obligations of the Landlord
Finally, the tenancy agreement should include the obligations of the landlord, including providing a safe and habitable property, maintaining the property in a reasonable state of repair, and complying with all relevant laws and regulations.
In conclusion, the Council for Estate Agencies (CEA) sets important consumer protection measures for tenancy agreements in Singapore. As a tenant, it is important to understand these provisions and to ensure that they are included in your tenancy agreement to protect your rights and interests.