Tenancy Agreement Not Stamped Singapore: What You Need to Know
If you are renting a property in Singapore, you need to have a valid tenancy agreement that is properly stamped. The stamp duty payable on a tenancy agreement is the legal proof of the agreement and without it, the agreement is not considered legally binding. Failure to pay stamp duty can result in hefty fines and legal complications. This article will guide you through the importance of stamping your tenancy agreement, what happens when you don`t stamp it, and how to avoid the consequences of having an unstamped agreement.
What is Stamp Duty?
Stamp duty is a tax levied by the government on legal documents to make them legally valid. In the case of tenancy agreements, stamp duty is payable on the agreement to make it legally binding. The amount of stamp duty payable depends on the rental amount and the duration of the tenancy.
Why is Stamping a Tenancy Agreement Important?
Stamping a tenancy agreement is important because it legally binds both the landlord and the tenant to the terms and conditions of the agreement. It provides evidence of the agreement, which can be used in court if there are any disputes between the landlord and the tenant. Additionally, an unstamped agreement is not admissible as evidence in court, making it difficult for either party to make a legal claim if a dispute arises.
What Happens if a Tenancy Agreement is Not Stamped?
If a tenancy agreement is not stamped, it is considered an unstamped agreement. In this case, if there are any disputes between the landlord and the tenant, neither party can use the agreement as evidence in court. Furthermore, an unstamped agreement is not legally enforceable, and it can lead to hefty fines and legal complications.
How to Avoid Consequences of an Unstamped Agreement?
To avoid the consequences of having an unstamped agreement, it is important to ensure that your tenancy agreement is properly stamped. In Singapore, the stamp duty payable on a tenancy agreement is paid by the tenant. The tenant must pay the stamp duty within 14 days of signing the agreement. The stamp duty can be paid online through the Inland Revenue Authority of Singapore (IRAS) website or at any Singapore Post Office.
Conclusion
In conclusion, stamping a tenancy agreement is an essential step to ensure the legal validity of the agreement. An unstamped agreement is not legally binding and can lead to hefty fines and legal complications. Hence, it is important to pay the stamp duty on time to avoid unpleasant consequences. As a tenant, it is your responsibility to ensure that your tenancy agreement is properly stamped, and you should always keep a copy of the stamped agreement for future references.