Letter of intent (LOI): what to check before you commit

A letter of intent (LOI) and tenancy agreement (TA) serve different drafting stages. Compare rent, dates, agreed works and exit terms; binding effect depends on the wording and circumstances.

What an LOI actually is

Two documents, one comparison trail

LOI: rent / dates / works / exit term
TA: find the corresponding final wording
Difference: ask and record the agreed change

Omission does not automatically decide enforceability. Read the actual wording and circumstances.

An LOI records proposed or agreed terms before a final agreement. Its title does not make it never binding or fully binding. Whether obligations arise depends on the document and circumstances; obtain legal advice if its effect is disputed.

The good faith deposit — what it is and what to watch

Check the amount, recipient, purpose and treatment if either party withdraws or final terms are not agreed. Do not assume a universal amount, automatic forfeiture or guaranteed refund. PayNow is a payment method, not proof of ownership or authority to let. Mobile proxies and bank transfers can be legitimate. Refusal to share an NRIC number does not establish fraud. HSBC explains that retail PayNow names became masked registered names from 6 June 2026. A displayed or partially matching name is not a guarantee. Independently confirm the intended recipient and any difference from the agreement before payment. MDDI explains why an NRIC number is not authentication.

Terms to compare in both documents

Compare the address, rent and included costs, dates, deposit, agreed works, draft/signing timeline and any exit term. A student’s proposed exit term needs to fit their circumstances; employment-triggered wording is not automatic cover.

What the LOI cannot do

Compare both documents and clarify differences before signing. An omitted term is a drafting question, not automatic proof that it is unenforceable. Incorporation, variation and the full wording can matter. Read exit-trigger questions.

Before the final agreement

Keep versions and correspondence, obtain the complete draft and attachments, and record agreed corrections. IRAS explains that stamping before signing avoids lateness. Its no-penalty windows are within 14 days after signing in Singapore, or within 30 days after receiving in Singapore a document signed overseas. Electronic documents have specific execution and receipt rules; consult IRAS timing guidance for your circumstances. Late stamping can incur penalties; it does not mean an agreement permanently loses all legal standing.