Good Faith Deposit Refunds: Key Rules for Singapore Renters
A Good Faith Deposit in Singapore rentals is a sum paid with the Letter of Intent (LOI) to show tenant commitment, typically 1 month's rent for a 1-year lease, refundable if no Tenancy Agreement (TA) is signed or under specified conditions.[1][2][5]
At Homejourney, we prioritize user safety by verifying listings and clarifying deposit terms upfront, helping you avoid disputes. This guide focuses on refunds and resolutions, linking to our pillar on Security Deposit Rules Singapore for full coverage.[3]
Good Faith Deposit vs Security Deposit: Clear Differences
The Good Faith Deposit secures the property post-LOI but pre-TA, demonstrating rental intent while the landlord stops marketing.[1][2] It converts to security deposit upon TA signing or is refunded if the deal fails.[1][3]
Security deposits cover damages or unpaid rent throughout the lease.[3][7] Key distinction: Good Faith Deposits are short-term (days to weeks), while security deposits last the tenancy.[1]
| Aspect | Good Faith Deposit | Security Deposit |
|---|---|---|
| Purpose | Reserve property, show intent | Cover damages, rent arrears |
| Timing | With LOI (pre-TA) | With TA (full lease) |
| Amount | 1 month rent (typical) | 1-2 months rent |
| Refund | If no TA or per LOI terms | End of lease, minus deductions |
Insider tip: Always review LOI for refund clauses before paying. Homejourney listings highlight these for transparency.[3]
When Is Your Good Faith Deposit Refundable?
Refunds are due if: (1) No TA is signed within LOI timeline (e.g., 2 weeks); (2) Landlord fails to provide TA; (3) Mutual agreement to cancel.[2][1] No LOI/TA means full refund, as no binding contract exists.[1]
For HDB rentals, comply with HDB subletting approval; non-compliance risks forfeiture.[3] Pay via bank transfer for proof—avoid cash.[2]
- Check LOI for conditions (e.g., "refundable if TA not signed in 14 days").[2]
- Request written confirmation from agent/landlord.[1]
- If disputed, reference Community Mediation Centre (CMC) first.[7]
Homejourney connects you to agents who clarify these terms: Find Trusted Agents.
Common Good Faith Deposit Disputes and Resolutions
Disputes arise when landlords forfeit without cause, e.g., after payment sans LOI/TA, or due to reneged terms.[1] Tenants back out post-deposit; landlords claim non-refundable agent's fees.[1]
Step-by-Step Resolution:
- Negotiate Directly: Email politely citing LOI terms. Template: "As per LOI dated [date], deposit refundable if no TA by [date]. Please transfer to [account]."[1]
- Mediation: Use free CMC for amicable settlement (most cases resolve here).[7]
- Small Claims Tribunal: For claims ≤$20,000. File online via State Courts portal; bring LOI, payment proof, messages.[6]
Hearing timeline: 4-8 weeks, low fees (~$10-50). Win rates high with evidence.[6] For HDB, check HDB rules.
Gathering Evidence for Deposit Disputes
Document everything: LOI signed copy, bank statements, WhatsApp/email threads, property photos (pre-move).[1][2][6]
- Payment receipts (IBFT proof essential).[2]
- Tenant/landlord communications showing agreements.
- Witness statements from agents.
- LOI clauses on refunds/forfeiture.
Organize in folder: Chronological timeline strengthens cases at Tribunal.[6] Homejourney's verified listings reduce risks—search rentals at Homejourney Rental Search.
LOI Rental vs Tenancy Agreement: Key Differences
Letter of Intent (LOI rental) is non-binding intent document with Good Faith Deposit; tenancy agreement is binding contract.[1][2] Skipping LOI omits deposit.[1] See our cluster: LOI vs Tenancy Agreement: Singapore Rental Guide | Homejourney ">LOI vs Tenancy Agreement Guide.
Pro tip: Negotiate LOI like pros—use templates from 首次租房意向书（LOI）模板与谈判技巧：新加坡新手租房攻略 | Homejourney ">First-Time Rental LOI Tips. For investors, track via Bank Rates .
Preventing Future Good Faith Deposit Issues
Lessons: Insist on clear clauses (e.g., 14-day TA deadline).[2] Verify landlord via CEA agents on Homejourney.[3] For HDB, get prior approval.
- Read LOI fully before signing.
- Use lawyers for high-value rentals ($5k+/month).[2]
- Photograph payments/agreements.
- Avoid verbal promises—get written.[1]
Landlords: Specify conditions to retain good tenants, per Landlord Guide: Retaining Good Tenants During Renewal | Homejourney ">Landlord Renewal Guide.
FAQ: Good Faith Deposit Refunds and Disputes
What if no LOI was signed but deposit paid?
Full refund due—no contract exists. Demand via email; escalate to CMC if needed.[1]
Can landlords forfeit Good Faith Deposit arbitrarily?
No—only per LOI terms (e.g., tenant backs out). Tribunal enforces fairness.[2][6]
How long for Small Claims Tribunal process?
4-8 weeks from filing; $10 fee for ≤$5k claims. Evidence wins cases.[6]
Is Good Faith Deposit same for HDB/private?
Similar, but HDB needs sublet approval first. Check HDB portal.[3]
Where to find safe rentals post-dispute?
Homejourney verifies listings for clear terms: Search Now.
Disclaimer: This is general info, not legal advice. Consult lawyers/State Courts for cases. Homejourney verifies data for trust, prioritizing your safety.
Secure your next rental with transparent terms on Homejourney. Explore Security Deposit Pillar Guide and find verified rentals today.
