SINGAPORE Law and Practice Contributed by: Dorothy Marie Ng, Monica Yip, Tay Peng Cheng and Tan Shao Tong, WongPartnership LLP
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. 6.13 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. 6.14 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- out works during a prescribed fitting-out period, subject to compliance with conditions such as approval of plans for the fitting-out works. These conditions are sometimes set out in a handbook. 6.15 Specific Regulations Specific regulations that apply to the differ - ent categories of real estate generally pertain to their uses. The landlord of commercial real estate approved for one use class may only lease premises for that use class. Similarly, a light industrial building cannot be utilised for general industrial use without prior approval for such change of use.
The Rental Waiver Framework (RWF) intro - duced as part of legislative relief measures in response to the COVID-19 pandemic came into force on 5 October 2021 and applied, subject to certain criteria, for the benefit of eligible small and medium-sized enterprises and specified non-profit organisations renting qualifying com - mercial properties. However, the period for the submission of applications under the RWF has now expired. 6.16 Effect of the Tenant’s Insolvency If the tenant becomes insolvent, leases will gen - erally provide that the landlord will be entitled to terminate the lease and exercise the right of re-entry to the premises. Leases will also provide that the landlord is entitled to use the security deposit and apply it towards unpaid rent and other outstanding obligations. Under insolvency legislation, there are limita - tions on the landlord’s possible remedies in the event of the insolvency of the tenant. If bank - ruptcy or compulsory liquidation proceedings have commenced, legal proceedings against the tenant will require leave of court. A landlord will have to file a claim with the official assignee or the liquidator for outstanding rents and monies owed under the lease. There may also be issues as to whether the landlord is entitled to use the security deposit, as the security deposit may be considered part of the tenant’s assets to which all creditors are entitled. 6.17 Right to Occupy After Termination or Expiry of a Lease If a tenant continues to occupy the real estate after the expiry or termination of a lease without the consent of the landlord, that would consti - tute a breach of the terms of the lease. Unless otherwise specified in the lease, a tenant remain - ing in the property after the termination of a lease
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