RES exam question on Leasing of Private Property: Tan holds a 5-year retail lease at a mall and in year 3 wishes to assign the lease…
Case Study: Tan holds a 5-year retail lease at a mall and in year 3 wishes to assign the lease to Wong, a new F&B operator. Which statements are CORRECT? (i) Tan requires the landlord's prior written consent before assigning the lease to Wong (ii) Once assigned to Wong, Tan is completely released from all obligations under the original lease (iii) The landlord may impose reasonable conditions (e.g. rent deposit, personal guarantee from Wong) before granting consent (iv) If the landlord unreasonably withholds consent, Tan may proceed to assign without consent
- A(i), (ii) and (iii) only
- B(i), (iii) and (iv) only
- C(i) and (iii) only
- DAll of (i), (ii), (iii) and (iv)
Show answer & explanation
Answer
C. (i) and (iii) only
Explanation
(i) CORRECT — commercial leases invariably require landlord's prior written consent for assignment. (iii) CORRECT — landlords may impose reasonable conditions.
Why the other options are wrong
- (ii) INCORRECT — in Singapore, the assignor (Tan) typically remains liable on the original lease covenants unless expressly released; there is no equivalent of the UK Landlord and Tenant (Covenants) Act 1995.
- (iv) INCORRECT — Singapore has no statute entitling a tenant to assign despite unreasonable withholding of consent, unlike UK law.
Study the concept behind this question: Leasing Private Residential Property (Singapore)
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