Why is a lessor advised to include a diplomatic clause in a fixed-term lease agreement and what is the content of this clause? The fundamental principle of Dutch rental law is that the tenant must be regarded as a “weaker party”. Often, legislation on rental agreements is mandatory and the parties, especially the owners, cannot derogate from this legislation by agreement. The mandatory nature of this legislation is clearly reflected in the rules on how to terminate a tenant`s lease. A discussion on diplomatic clauses would be incomplete without some examples clauses. Here are two examples: “The tenant can terminate this contract after six (6) months after the execution of this contract (which avoids any doubt of the 1st. October 20XX) if the tenant is forced to leave Bangkok due to unforeseeable circumstances that are not controlled by the tenant. In this case, the tenant must give the lessor at least thirty (30) days` notice in writing. The En Bloc clause is used to allow the lessor to terminate the lease prematurely if the entire building is sold for renovation. If it is relatively rare, the inclusion of this clause gives the lessor the opportunity to terminate the lease without having to compensate the tenant. Quite simply, it is a clause that allows the tenant to end his lease prematurely without the risk of losing his deposit, provided that an appropriate notification is made (usually 1 month).
While this may seem terribly detrimental to the owner of the property, there are two ways to ensure that the owner can enjoy maximum benefits while maintaining a level of flexibility and fairness: another point to consider is during the negotiation of TA and if you find that no diplomatic clause is included from the beginning. This could be a red flag from an owner who is not totally accommodating or reasonable in any store. Of course, this could still be a real mistake, but the chances are good, if the owner tries to crush you from the beginning, things can only get worse in all negotiations in the end. So choose wisely! However, in the current rental market, it is not very easy to negotiate a diplomatic clause for a landlord, because the supply of housing is as important as the supply of housing. In recent years, many homeowners have put their property not only for sale, but also for rent, which has increased the supply of homes. Unfortunately, the demand for homes has not increased, but it has not decreased either. Therefore, expats can choose a rented property according to their personal tastes, which is sometimes a challenge. Most two-year leases contain a diplomatic clause as a safety net for you, so in the unfortunate case of such cases, you will at least not have to worry about unpaid rent. Let`s see what a typical diplomatic clause would look like: As always, feel free to leave a comment below or you can always join us at email@example.com! Check out our guide if you want to make your singapore rental trip as simple as possible! If you`re worried about your rental deposit, here`s our take! A diplomatic clause from Thailand is often included in multi-year expatriate leases. Without one, tenants could lose their entire deposit if they terminate their lease prematurely. Homeowners rarely make exceptions simply because you`ve found a better home elsewhere, although I can sometimes negotiate a better outcome for you.
In 2001, the Société des régisseurs de Genève (SR) and the Chambre genevoise immobilière (CGI) decided to incorporate the diplomatic clause into the general rental conditions and practices, as they are applicable in the canton of Geneva and which govern rental contracts. . . .