Singapore Office Space Leasing Procedures

Singapore Office Space Leasing Procedures

Finally, you have done your viewing. And you found the office space you and your team love. It is time to make an offer for the space. But you are not familiar with the Singapore office space leasing procedures. So we created this step by step guide. To help you in getting your ideal office space.

Letter of Intent (LOI)

First of all, you may start the negotiating process with a Letter of Intent (LOI). An LOI is a formal letter indicating your interest to lease the place. Your desired terms like the lease like the rental price, tenure of the lease and any other conditions are also recorded in the LOI.

You usually attached your business profile from ACRA and a good faith deposit with the LOI. After the landlord receive the LOI, they will usually do a background check on you like financial strength and paid-up capital. The LOI is still subjected to the terms and condition of the TA.

Letter of Offer (LOO)

Depending on the practice of the Landlord, a Letter of Offer may be issued. This may happen after basic terms in the LOI are agreed. A copy of the Tenancy Agreement is then handed over with the LOO.  After the LOO is signed, the Good Faith Deposit is non-refundable.

Once you signed the LOO and handed over the good faith deposit. The premise is secured subject to the signing of the Tenancy Agreement. Likewise, the LOO is a legal binding contract like the Tenancy Agreement. The good faith deposit is non-refundable at this point.

Tenancy Agreement (TA)

Finally, you can go ahead and sign the TA after the LOI or LOO has been accepted. Most TA adopt standard and similar terms and conditions. The terms and conditions agreed in the LOI and LOO stage are also included in the TA. The Landlord’s solicitors usually prepares the TA. Similarly, you may engage your professional legal service at your own cost to go through the Tenancy Agreement with you. It is a common practice here for the tenant to bear the legal fee for preparing the TA. The legal fee varies according to the level of changes made in the TA.

Taking Possession

Finally, after the TA is signed, security deposit and advance rental paid. You will be able to take possession of the premise on the agreed date. You are usually given a rent-free period for fitting out. The landlord and yourself will then complete an inventory list on the day of taking possession. You can check the items in the premise and record existing defects. It is recommended that you take photos or videos of the place when taking over.

Stamp Duty

Because in Singapore, all property transaction documents have to be stamped. The fees is payable based on the declared rental or market rates. You may calculate your stamp duty here. The tenant will be responsible for the stamp duty charges.

We hope you find this Singapore Office Space Leasing Procedures guide helpful. It is recommended that you use a commercial property realtor to assist you in your office or shophouse search. There is no commission chargeable for the tenant. Let us help you with your search so you can spend your time on more important things. Contact Us now.