Breaking a Singapore Rental? Guide to the Diplomatic Clause

Quick Overview

Diplomatic Clause: A protective clause allowing foreign tenants to terminate a lease early due to relocation or repatriation.

12 + 2 Rule: Typically allows move-out after 12 months of residency with a 2-month notice, without paying the remaining rent.

Commission Refund: If terminating early, you must reimburse a pro-rated portion of the agent's commission paid by the landlord.

Whether you’ve just been posted to Singapore for work or moved here for your children’s education, finding a home is one of the biggest challenges you'll face. While finding the perfect place in an unfamiliar land is hard enough, there’s often a deeper worry: "What if I suddenly have to move back home before the lease ends?"

Rental costs in Singapore are significant. Most contracts are signed for two years (24 months), and the thought of having to pay the remaining rent if you need to leave early can be daunting. This is why the 'Diplomatic Clause' is an essential safety net for expatriates. Today, I’ll explain exactly what this clause is and how it applies to the 2025–2026 market.

Why is the Diplomatic Clause So Important?

Also known as a 'Break Lease Clause,' this provision allows a tenant to legally terminate a lease early if they are required to leave Singapore (due to relocation, redundancy, or repatriation). Without this clause, you could potentially be liable for the rent for the entire remaining duration of the contract.

In Singapore, it is standard practice to include this clause in long-term leases of 24 months or more. However, landlords are often reluctant to include it in 12-month short-term leases. While the rental market has stabilized recently, clearly negotiating this point remains the key to protecting your security deposit.

Category	12-Month Lease	24-Month Lease
Clause Applicability	Very Rare (Negotiable)	Standard (Must Request)
Minimum Stay	N/A	Typically 12 Months
Notice Period	N/A	Typically 2 Months
Total Mandatory Stay	Full 12 Months	14 Months (12 + 2)

Understanding the Common '12 + 2' Rule

The most common formula in standard Singaporean tenancy agreements is '12 + 2.' This means you must stay for at least 12 months, and after that, you can leave by providing 2 months' notice. Effectively, the earliest you can vacate the property is 14 months after moving in.

Minimum Stay: Usually set at 12 months. You cannot trigger the diplomatic clause for any reason during this initial period.
Notice Period: After the 12-month mark, you must provide written notice stating, "I will be leaving in 2 months." If you wish to leave immediately after the notice, you must pay 2 months' rent in lieu of notice.
Required Documentation: You cannot use this clause simply because you "changed your mind." You must provide official proof to the landlord, such as a company transfer letter or a cancellation notice of your Employment Pass (EP).

Agent Commission Reimbursement Rules

Many tenants are surprised by this part! If you exercise the Diplomatic Clause to leave early, you are required to reimburse the landlord for the 'pro-rated portion' of the commission they paid to the real estate agent at the start of the lease. This is known as the 'Reimbursement of Commission.'

For example, if you signed a 24-month lease for a home with a monthly rent of SGD 5,000, the landlord likely paid one month's rent (SGD 5,000) as a commission. If you leave after 14 months, you must return the commission for the remaining 10 months.

Formula: (Remaining Months / Total Contract Months) × Commission Paid by Landlord
Example Case: (10 months / 24 months) × SGD 5,000 = SGD 2,083.33

While this might seem like a large sum, it is far more economical than paying the remaining 10 months of rent (SGD 50,000). Think of it as an insurance premium for your flexibility.

Practical Tips for Tenants in 2026

If you are about to sign a lease in Singapore, keep this checklist in mind based on local experience:

Include 'Termination' Conditions: Ensure the clause covers not just 'Transfer' but also 'Redundancy' or 'Resignation.' Some strict landlords may try to insist it only applies to company-mandated transfers.
Negotiate for 6 + 2: In a more flexible rental market, you can try negotiating for a '6-month stay + 2-month notice' even on a 2-year lease. If successful, you could leave without penalty in as little as 8 months.
Verify Stamp Duty: For a contract to be legally binding, Stamp Duty must be paid to IRAS (Inland Revenue Authority of Singapore). This is usually about 0.4% of the total rent. Without this, it may be difficult to enforce the Diplomatic Clause during a dispute.
Keep a Paper Trail: Always use email or Registered Post when serving your termination notice. WhatsApp messages can be unreliable if a landlord claims they never saw them.

Finally, remember that security deposits are often deducted for 'Minor Repairs' when vacating. Since you are leaving early via the Diplomatic Clause, ensure the property is kept in excellent condition to ensure your full deposit is returned!