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Ref: 802112

Worries about Owners’ intentions after giving deposit
What makes a good letter of intent?
"Subject to contract"

WANTED by British family in April 1998.
Agent, Tel: 9668 6468, 254 2728.

This report provides some information to Tenants
and New Housing Agents regarding
a good letter of intent.

"Can somebody advise as to whether I would lose the deposit if the Owner does not do what has been told to my agent (verbally)?" asked a worried caller who wanted the Pasir Ris HDB apartment. Our agency had nothing to do with this case.

The following should be included in the Letter of Intent:

  1. "Subject to Contract" to be typed in and if "kiasu" (afraid to lose syndrome of Singaporeans), to include that the good faith deposit will be immediately returned if Owner does not perform accordingly.
  2. A written letter stating the "diplomatic clause" of breaking lease after 12 months’ occupancy and giving 2 months’ notice or rent in lieu.
  3. List of repairs/replacement of furnishings to be done by the Owner
  4. List of new furniture and appliances and model/specifications, if any.
  5. When will items be repaired or supplied.
  6. Cleaning of apartment to satisfaction of tenant.
  7. How long will the letter of intent be valid e.g. 3 days.
  8. Owner is genuine (agent has to be careful).

Advices to New housing agents: Best to procure the lease agreement and get it signed within 24 hours since there are many changes in this industry. You need to be more energetic than the "fat" realtors who have so many cases and one loss is nothing to them.

Also, by-pass the letter of intent and go direct into the lease agreement, incorporating above terms. See the article on "what makes a good tenancy agreement". Best wishes.

Anne Brocklebank

A copy of a "Letter of Intent" is shown below.

Letter of Intent

Subject to Contract & Conditions

February 11, 1998

Ms Yeo ….

Owners: UE Square Condo, Parkwing, #15-…., Singapore and home address.

We act as housing agents for A… International and confirm that our client offers to lease the above mentioned property for two (2) years with effect from March 14, 1998, at a monthly rental of S$5,500, partially furnished but inclusive of maintenance and car parking and related car parking fees.

The conditions are:

  1. A diplomatic clause of 12 months' occupancy with 2 months' notice or rent in lieu of notice after 12 months.
  2. The tenant's employee, Mr Miky will get an employment pass and will be able to set up the Singapore branch of the Company.
  3. Half a month rental as a good faith deposit to be paid tomorrow and the other half on confirmation that the Singapore branch has been approved by the Singapore Government.

As agreed, the Landlord, prior to the commencement of tenancy, will provide the following:

  1. to provide and install grilles/netting to surround the air condition compressor.
  2. to provide lighting of Tenant's choice but at a reasonable budget from the Landlord.
  3. to provide one new family-sized refrigerator.
  4. to install shower-curtain rail for the master bedroom's bathroom.
  5. To provide a new washer and drier (front loading, American size).
  6. to ensure all electrical, plumbing and sanitary installations are in good working order.
  7. to clean the entire apartment before commencement of tenancy.

We look forward to your favourable reply as soon as possible.

Yours faithfully

Dr Sing Kong Yuen

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