Lease Agreement For Retail Premises
Nature of Dispute
Disputes arising from commercial leases can involve alleged breaches of lease agreements, possible termination of leases and rental increases. Often times, clauses may be difficult to understand, leading to disagreements or misunderstandings.
How can we help
On 26 June 2020, key representatives from Singapore’s landlord and tenant communities, together with industry experts, formed the Fair Tenancy Pro Tem Committee in a bid to strengthen collaboration and increase the vibrancy and competitiveness of Singapore’s retail, food & beverage (F&B) and lifestyle sectors. The result is an industry-led Code of Conduct for Leasing of Retail Premises in Singapore (“Code”) based on the principles of transparency, reciprocity and sustainability.
On 3 May 2021, key representatives from Singapore’s landlord and tenant communities, together with industry experts formed the Fair Tenancy Industry Committee (FTIC) to be the custodian of the Code and address matters related to retail lease agreements.
The FTIC has partnered with SMC to ensure that there will be timely resolution of dispute over matters covered under the Code at a reasonable cost. In the event that a dispute relating to non-compliance with the Code arises after the lease agreement is signed, either party may escalate the matter to SMC. Once escalated, both parties must approach SMC and shall comply with the resolutions of the SMC.
All cases must go through the Scheme Mediation before they can proceed to Scheme Adjudication.
For more information, please refer to the Lease Agreements for Retail Premises Act Alternative Dispute Resolution Scheme on the Documents & Forms page.
Alternatively, please click here to visit the FTIC website.
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Scheme Mediation
SMC will appoint a Scheme Mediator to facilitate the Mediation via the Chatroom on the Online Platform between Parties for a maximum period of 10 calendar days. Within this 10 calendar days period, if the dispute is resolved, the Parties shall enter into and sign a Settlement Agreement on the terms of resolution of the dispute. The dispute will be resolved, and the case will be closed.
However, if the dispute is unresolved after the conclusion of the Mediation, the party who applied for Mediation may opt to escalate the dispute to the Scheme Adjudication stage.
Alternatively, the case can also be closed at this stage.
Scheme Adjudication
SMC will appoint an Adjudicator to render a decision on the dispute solely based on the submission of documents via the Online Platform. Within 14 calendar days from the appointment of the Adjudicator, a written decision (a ‘determination’) shall be issued to the Parties, and the case will be closed.
Fees
Scheme Mediation Fees
| A non-refundable Mediation Filing Fee of $163.50 (inclusive of GST) is to be borne by each party. | |
| Sum in dispute | Mediation fees per party
(inclusive of GST) (Note: If the mediation is held in person, the mediation fees below will be charged in a block of 4 hours or part thereof per party.) |
| Up to $5,000 | $109 |
| Above $5,000 up to $30,000 | $218 |
| Above $30,000 up to $60,000 | $327
|
Scheme Adjudication Fees
| A non-refundable Adjudication Filing Fee of $327 (inclusive of GST) is to be borne by each party. | |
| Sum in dispute | Adjudication fees per party
(inclusive of GST) |
| Up to $5,000 | $218 |
| Above $5,000 up to $30,000 | $436 |
| Above $30,000 up to $60,000 | $872 |