The Code applies to Qualifying Retail Premises in Singapore regardless of whether such Qualifying Retail Premises are located in standalone commercial buildings (e.g. shopping centres, office buildings, industrial and business parks, mixed-use developments, shop houses and shop flats (whether owned or leased by statutory boards), schools, hospitals, MRT stations, airports or other types of buildings.
Tenants should understand the typical terms and conditions in a lease agreement and be aware of some of their implications. The Code supports tenants and landlords in working out a mutually agreed, fair lease agreement through open and transparent negotiations.
Landlords must complete the checklist in the form as set out in Appendix 1 of Part D (“Checklist”) of the Code and provide it to the Tenant at the same time when Landlord sends the first draft of the lease agreement to the Tenant. For clauses where the Code allows for deviation and both parties mutually agree to such deviation, both parties must indicate its acknowledgement in the Checklist and file a joint declaration of deviation with FTIC within 14 days of signing lease agreement. The Code only allows for mutually-agreed deviation in the leasing principles for Exclusivity, Sales Performance, Security Deposit and Rental Structure.