What law allows a real estate agent to write a 2 year rental agreement for a client?
|
Stamp Duty on leases is payable based on the contractual rental or the market rental, whichever is higher, at the Lease Duty rates. Stamp duty is payable on documents relating to leases of immovable properties in Singapore such as : Lease or tenancy agreement
Lease with Fixed Rent
Lease with Premium
Lease with Variable RentA lease with variable rental is one for which the rental varies during the lease period. e.g.
In a lease involving an additional rental component based on a percentage of the GTO, you are to estimate the GTO and determine the additional rent payable. This additional rent shall be included for the stamp duty calculation i.e. the rent that is subject to stamp duty is the sum of the fixed rental (if any) and the additional rental derived from the estimated GTO. Where the additional rental component is subject to a maximum or minimum secured sum, the additional rent that is subject to stamp duty shall be:
Additional rent subject to stamp duty Please refer to Examples 1 to 3 below on the calculation of stamp duty for leases involving staggered rental or a percentage of GTO.
Surrender of LeaseRates and Computation
Lease duty is rounded down to the nearest dollar, subject to a minimum duty of $1. 1AAR refers to the higher of the average annual contractual or annualised market rent and includes other considerations such as payments for:
Example 1: Lease with Staggered Rent (4 Years or Less)
Example 2: Lease with Staggered Rent (More than 4 Years)
Example 3: Lease on Commercial Unit Where Rent or Part of Rent is Percentage of Tenant's Sales Turnover (3 Years)i) A lease with fixed rental and an additional rental based on a percentage of gross sales turnover (GTO), without a maximum or minimum secured sum
To calculate the Stamp Duty payable:
ii) A lease with fixed rental and an additional rental based on a percentage of GTO that is subject to a minimum secured sum
To calculate the Stamp Duty payable:
iii) A lease with fixed rental and an additional rental based on a percentage of GTO that is subject to a maximum secured sum
To calculate the Stamp Duty payable:
Example 4: Increase in Rental Where the Original Lease Period and Parties Remain the Same (More Than 4 Years)
Example 5: Bringing forward / Deferring the lease without changes in lease term and gross rentIf the lease period has not commenced, and the lease was brought forward or deferred without any changes in the gross rent or lease term, stamp duty is not payable. i) Bringing forward the lease
ii) Deferring the lease
Example 6: Extension of a lease term without change in gross rentThe landlord grants an extension to the lease period, but provided a rent-free period equivalent to the extended period. Stamp duty is payable on the extended period.
For rates before 22 Feb 2014, please refer to Stamp Duty for Property. Please refer to How to stamp Lease or Tenancy Agreements for the illustrated guide for stamping a Lease or Tenancy Agreement. How many types of estate agent agreements are there?CEA has eight Prescribed Estate Agency Agreements for the sale, purchase and lease of residential property transactions. You can choose to use either exclusive or non-exclusive agreements for each type of transaction.
What is Cobroking?Co-broking, a common practice in the real estate agency industry, refers to a situation when two or more property agents (representing counterparties to the transaction) are involved in the same property transaction. The agents work together to achieve the best possible outcome for their respective clients.
Can agent represent landlord and tenant?The answer is “No” for both questions. A property agent would be committing a dual representation offence if he represents both parties in the same transaction. In other words, an agent cannot represent both buyer and seller, or both tenant and landlord in the same property transaction.
What is Cepcc?The Practice Guidelines on Conduct between Salespersons are to be read with the Code of Ethics and Professional Client Care (CEPCC).
|
