Pre Lease Agreement for Singapore

Pre Lease Agreement Template for Singapore

A Pre Lease Agreement under Singapore law is a binding document that establishes the terms and conditions under which a potential tenant may enter into a formal lease agreement for a property. It typically includes an option period during which the tenant has exclusive rights to proceed with the lease, subject to specified conditions. The agreement is governed by Singapore's property laws, including the Conveyancing and Law of Property Act, and provides protection for both landlord and tenant during the pre-lease period.

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What is a Pre Lease Agreement?

The Pre Lease Agreement serves as a crucial preliminary document in Singapore's property rental market, providing a structured framework for parties to progress towards a formal lease arrangement. It is commonly used when parties need time to conduct due diligence, secure financing, or fulfill other conditions before committing to a full lease term. The agreement typically includes details about the property, proposed rental terms, option period, and any conditions precedent. Under Singapore law, this document creates legally binding obligations while protecting both parties' interests during the pre-lease phase.

What sections should be included in a Pre Lease Agreement?

1. Parties: Identification and details of the potential landlord and tenant

2. Background: Context of the pre-lease arrangement and reference to relevant legislation

3. Definitions: Key terms used tHRoughout the agreement including property-related terminology

4. Property Details: Specific description and address of the property

5. Option Period: Duration for which the pre-lease agreement is valid

6. Consideration: Details of the option fee and proposed rental

7. Exercise of Option: Process and conditions for exercising the option

8. Proposed Lease Terms: Key terms of the proposed lease agreement

9. General Provisions: Standard contractual provisions including governing law and jurisdiction

What sections are optional to include in a Pre Lease Agreement?

1. Due Diligence: Property inspection and verification requirements, typically included for high-value properties or commercial premises

2. Conditions Precedent: Specific conditions that must be met before lease execution, included when there are particular requirements or approvals needed

3. Property Usage Restrictions: Specific limitations on property use, included for properties with special zoning or usage requirements

4. HDB Specific Provisions: Additional provisions specific to HDB properties, included when the property is an HDB unit

What schedules should be included in a Pre Lease Agreement?

1. Schedule 1 - Property Details: Detailed description of the property including floor plan and location details

2. Schedule 2 - Form of Lease: Draft of the proposed lease agreement

3. Schedule 3 - Inventory List: List of furnishings and items included in the lease (for furnished properties)

4. Schedule 4 - Due Diligence Checklist: List of required inspections and verifications (for commercial properties)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Free to use

Relevant legal definitions

Clauses

Relevant Industries

Residential Real Estate
Commercial Real Estate
Industrial
Retail

Relevant Teams

Legal
Real Estate
Finance
Operations
Compliance

Relevant Roles

Property Manager
Real Estate Director
Leasing Manager
Legal Counsel
Facilities Manager

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What is a Pre Lease Agreement?

What sections should be included in a Pre Lease Agreement?

What sections are optional to include in a Pre Lease Agreement?

What schedules should be included in a Pre Lease Agreement?

Authors

Alex Denne

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