1. Letter of Intent (LOI)
The Letter of Intent is the first step towards any tenancy agree. The tenant will submit a LOI in writing, withtheir ACRA bizfile, to the landlord to initiate the negotiation process. The LOI will state the business needs of the tenant and any extras which the tenant will require from the landlord.
2. Letter of Offer (LOO)
The Letter of Offer will be issued once all the principal terms of the rental agreement have been agreed upon by both parties. The LOO will also be given together with a draft tenancy agreement for the tenant to go through. In general, the tenant is given 7 to 10 days to sign the LOO and return it to the landlord with a non-refundable deposit. In most cases, the LOO is legally binding.
3. Tenancy Agreement (TA)
Upon signing of the LOO, a TA will be issued to the tenant. Tenants in general will have 2 to 3 weeks to sign this document. Tenants can also seek the advice of their lawyers familiar with local tenancy laws. Kindly note that most major landlords have their own TA drafted out and will not allow much changes done by tenants.
4. Handing/Taking Over
After the security deposit, advanced rental, stamp duty have been paid up, and all documentation signed, will the landlord allow the tenant to move in.
Common rental terms and practices used in Singapore.