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rekaniaga
post Jul 29 2011, 01:22 AM

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From: Sungai Buloh, Selangor


I have a situation. In December 2009, I have been renting an office. The contract signed is for one year. Then, after 1 year, I'm not given a new contract and the contract expired on December 2010. Then, I just do as usual, I pay my rent and keep rentals as usual.
And now, in July 2011, I want to move out, she asked me to give her three months notice if I want to move out. The problem is, I've never seen such terms in the contract before. Related terms contained in the contract is:

If the tenant shall be desirous of continuing this tenancy hereby created at the expiration of the term hereby granted to the tenant shall, prior to its expiry, give THREE (3) months notice in writing to the landlord and provided the tenant shall have paid the rentals and performed the several stipulations of this tenancy the landlord shall let the demised premises to the tenant for a further term and at such rental as stated in Section 10 of the First Schedule hereto as from and commencing one (1) day after the expiration of this tenancy and upon the same stipulations as are hereby contained save and except the provision for renewal.

So, she refused to return the deposit even though the contract has expired. And for your information, during the tenancy, the owner has charges me around RM200/month as interest for a late payment of rent. I've never seen such terms in the contract before, can she do that?

For reference, please refer to the terms related to the deposit, below:

RENTAL & SECURITY DEPOSIT:
Upon execution of this Agreement, the tenant shall pay to the landlord the sum as stated in Section 8 of the First Schedule hereto as deposit and security for the due observance and perfomance by the tenant of the terms and conditions of the tenancy hereby created. The said sum(s) shall be refunded by the landlord to the tenant without interest at the expiration of this tenancy provided that if the tenant is in breach of any of the provisions of this Agreement on the part of the tenant to be observed and performed, the landlord shall be entitled to deduct from such deposit such sum as is found due to landlord as a result of such such breach except in the event of the tenant terminating this tenancy during the continuance thereof, the landlord shall be entitled to forfeit the said deposit. The said deposit shall not be treated as payment of the rental by the tenant.

ELECTRICITY & WATER DEPOSIT:
The tenant shall further pay to the landlord upon execution of this agreement a sum as stated in Section 9 of the First Schedule hereto as deposit for water and electricity charges that may be due or payable by the tenant to the relevant government authorities or corporation for water and electricity supplied to or used at the demised premises during the period of this tenancy provided that the amount of the said deposit may be proportionately increased by the landlord in the event that the water and electricity deposits payable in respect of the demised premises shall be increased by the relevant governmental authorities or corporation. The said utilities deposit shall under no circumstances be treated as or deemed to be payment of the reserved rent and it shall be refunded by the landlord to the tenant without interest nor obligation to invest at the expiry of this tenancy provided that the tenant shall have paid and discharged all outstanding water and electricity charges up to the date it vacates the demised premises.

I am not quite understand with the terms, I just want to make sure on what action can I take to get my deposit back. Do I need to give her three months notice although there is no mention in the contract and even though the contract has expired? And can I take back the interest on a late payment that I already pay her?

Please advised.
rekaniaga
post Jul 29 2011, 05:20 PM

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QUOTE(dariofoo @ Jul 29 2011, 02:07 PM)
rekaniaga:
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There's no tenancy by contract as the contract has lapsed. Once it has expired and it is not renewed by a supplementary agreement, it lapsed and is of no effect. You can't refer to its terms anymore. Your tenancy is a monthly tenancy, and it is renewed once a month everytime you pay the rent, and she accepts payment without protest. Such monthly tenancies are terminable with one month's notice by either party.

So she can't refer to the 3months notice period clause in the contract.

With regard to the RM200 penalty, how did she charge you? Did she inform you to pay extra for that month and you agreed, or is she now doing a contra with the deposit? I'm not clear on that.

You now need to claim back your deposit. She has no right to hold it back. You can either draft a letter to demand it from her, or you can see a lawyer to get a formal letter of demand sent out. Don't do things like holding back the keys, etc. That has nothing to do with the deposit. The act of you holding the keys is a sign of intent to carry on with the rental, and she can use it against you.

icon_rolleyes.gif
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Hi Dariofoo, thanks for your explaination.

About the RM200 penalty, the situation is like this. Lets say, for June, I pay rent on the 10th june, suppose I need to pay it before 7 June. And then, she call me and ask me to pay more 200 as a penalty or she will include it on the next month bill. I just pay the penalty as she want.

And about the tenancy deposit. Do yoou have any sample letter that I can write and show her? I already give her the key on June and she refuse to let me out with the deposit. She said she has right to sue me coz I did'nt send her any letter/notice.

rekaniaga
post Aug 1 2011, 10:21 PM

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QUOTE(dariofoo @ Jul 29 2011, 11:47 PM)
You shouldn't have done that. That means you've agreed to a variation of the agreement to incorporate a clause imposing a penalty. A variation to the terms of the contract can be by way of conduct as well. How do you want to go around it? Do you want to term it as advance payment?  hmm.gif How many months 'penalty' did you pay? Is it a substantial amount?
You go back on the terms of the agreement. Don't be confused. Earlier I said that you can't refer back to the agreement. However, those terms are not applicable as it takes effect throughout the existence of the tenancy. The terms in relation to return of deposit only takes effect upon the expiration of the tenancy, so it is still applicable in these circumstances.

You just draft a simple letter referring to the clause and demand the deposit back. Keep it simple. If still no news then you need to see a lawyer to draft out a legal letter of demand (LOD). Alternatively, you can see a lawyer now itself to send out a LOD without the need for you to send one. You have a good case, don't worry. Surely the landlady will return the deposit to you by hook or by crook. She just needs a bit of 'persuasion'.

Good luck ya.  icon_rolleyes.gif
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How much it will cost me to ask for the letter of demand from the lawyer?


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