SINGAPORE Law and Practice Contributed by: Dorothy Marie Ng, Monica Yip, Tay Peng Cheng and Tan Shao Tong, WongPartnership LLP
pandemic events, construction build-out or supply chain issues. However, in some nego - tiated leases, parties may provide for longer timeframes to cater for potential construction or
munications. If separate metering for utilities is not possible for the leased premises, or if the landlord is purchasing electricity in bulk for the entire property, the landlord will arrange for the supply of utilities to the leased premises and apportion the charges for utilities to the tenants. 6.11 Insurance Issues The tenant will bear the cost of insuring the real estate that is the subject of a lease. A landlord will usually require the tenant to take up the policy in the joint names of the landlord and the tenant. A public liability insurance policy is typically required to be taken up to cover claims arising from personal injury, death or property dam - age or loss. A tenant may also be required to insure all of their property at the leased premises against damage by fire and other risks, and to insure all plate-glass windows and doors of the leased premises for the full insurable value. There is no clear data on whether tenants have claimed or been successful in claims against business interruption policies arising from the government-imposed “circuit breaker” in 2020 where “non-essential” business premises were ordered to be closed for more than a month. 6.12 Restrictions on the Use of Real Estate The Planning Act 1998 permits various uses for various premises. Accordingly, in a lease, a land - lord will stipulate the permitted use and require a tenant not to use the premises other than for the permitted use or the use approved by law. 6.13 Tenant’s Ability to Alter and Improve Real Estate Upon entry into a new lease, the landlord will commonly allow the tenant to undertake fitting-
supply chain delays. 6.5 Rent Variation
Whether the rent remains unchanged or is vari - able during the length of the lease term depends on the agreement between the lessor and les - see. 6.6 Determination of New Rent The rent may be varied at a fixed rate or may be pegged to an index, such as the consumer price index or the prevailing market rent. The exact mechanism is up to the parties to negotiate. 6.7 Payment of VAT GST is payable on rent, except in the case of leases of residential properties, which are exempt from GST. 6.8 Costs Payable by a Tenant at the Start of a Lease The tenant usually pays the stamp duty charge - able on the lease and a security deposit as secu - rity against breach of terms of the lease. They may also be required to pay service charges or charges for the hire of furniture and fittings and the landlord’s legal costs and/or administration fees. 6.9 Payment of Maintenance and Repair Landlords are generally responsible for the costs of maintaining and repairing common areas shared by several tenants. 6.10 Payment of Utilities and Telecommunications Tenants will arrange with and pay suppliers directly for the supply of utilities and telecom -
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