RES exam question on Leasing of Private Property: Mary rents her condo to an expatriate tenant on a 2-year lease with a 12-month minimum…
Mary rents her condo to an expatriate tenant on a 2-year lease with a 12-month minimum stay and a diplomatic clause; the tenant pays a 2-month security deposit. At month 9, the tenant's company relocates him overseas and he wants to leave immediately. Evaluate the statements: (i) The diplomatic clause is exercisable only after the 12-month minimum, so he cannot invoke it at month 9 (ii) Leaving at month 9 without a contractual right risks forfeiting the deposit and/or liability for rent (iii) The tenancy attracts stamp duty based on the rent and term, payable within the prescribed period (iv) Mary must refund the full deposit immediately once the tenant gives notice Which statements are CORRECT?
- A(i), (iii) and (iv) only
- B(i) only
- C(ii) and (iii) only
- D(i), (ii) and (iii) only
Show answer & explanation
Answer
D. (i), (ii) and (iii) only
Explanation
The diplomatic clause triggers only after the minimum stay; an early exit without a contractual right is a breach risking deposit/rent liability; tenancy stamp duty applies.
Why the other options are wrong
- (iv) is the trap — the deposit is not automatically refundable in full on notice.
Study the concept behind this question: Leasing Private Residential Property (Singapore)
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