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 Shopping Mall Rental Issue, Letter offer vs Tenancy Agreement

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TSeldenring
post Mar 14 2025, 02:03 PM, updated 9 months ago

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Sifu sekalian, this year seems unlucky start.

Need help on rental agreement on a retail lot with local shopping mall.

TLDR,
1. Shopping Mall Landlord issued Letter Interest
2. We paid some money
3. Landlord issued Letter Offer
4. We paid full downpayment
5. Landlord ask us start renovation while they preparing Tenancy Agreement. They keep mentioned LO is actually binded agreement.
6. We submitted all 3d drawings, design, marketing plans and all - they love it
7. We chase Tenancy Agreement to start work, they delayed almost 4 months - then out of sudden terminate everything
8. Most funny is - they forfeit our downpayment as well and blame us didn't start renovation when letter offer issued.

Swear to god, we did nothing wrong. We suspect they found some better brand to replace us.

Is above legal? Where can we file complaint.
Ah Teng
post Mar 14 2025, 02:22 PM

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all communications documented? if got prove can hire lawyer....
KitZhai
post Mar 14 2025, 02:22 PM

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With what reason they delay the tenancy agreement? 4 months? This thing if delay couple of weeks also bising edi.


doinkboy
post Mar 14 2025, 02:23 PM

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which mall?
pm
poweredbydiscuz
post Mar 14 2025, 02:29 PM

 
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The standard practice is you start renovation according to the handover and fit out date stated in the LO. Don't need to wait for TA.

Don't tell me 4 months already you still not yet start your renovation. If I landlord I also find other tenant.
whphon
post Mar 14 2025, 02:38 PM

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later you see what is the new shop
stryfox
post Mar 14 2025, 02:39 PM

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read the terms & conditions of LO properly. most likely forfeit as you fail to meet T&C stated in LO. better engage a lawyer to advise if you have a legal recourse. LO is a legally binding document and subject to all conditions being met

This post has been edited by stryfox: Mar 14 2025, 02:40 PM
netflix2019
post Mar 14 2025, 02:41 PM

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QUOTE(poweredbydiscuz @ Mar 14 2025, 02:29 PM)
The standard practice is you start renovation according to the handover and fit out date stated in the LO. Don't need to wait for TA.

Don't tell me 4 months already you still not yet start your renovation. If I landlord I also find other tenant.
*
really. 4 months no start work.

But why so long still no TA?? IMO the owner should be more kancheong to bind it with TA.
knwong
post Mar 14 2025, 02:47 PM

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According to this thread, letter of offer is legal binding.
https://forum.lowyat.net/topic/4214525/all

Pretty sure the mall’s lawyer drafted good LO when signed it’s siding them. Can share the LO here?

This post has been edited by knwong: Mar 14 2025, 02:47 PM
poweredbydiscuz
post Mar 14 2025, 02:56 PM

 
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QUOTE(netflix2019 @ Mar 14 2025, 02:41 PM)
really. 4 months no start work.

But why so long still no TA?? IMO the owner should be more kancheong to bind it with TA.
*
My previous experience to get the stamped TA is 3 months after the LO.

My guess is the landlord may see TS as a red flag as he refused to start renovation after a long time.
keybearer
post Mar 14 2025, 02:58 PM

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Wait why kena wait for Tenancy Agreement?
Last time I got letter offer got written there must complete renovation do everything by a specified "Commencement Date".

Retail lot for mall tenancy also.
KitZhai
post Mar 14 2025, 03:40 PM

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QUOTE(poweredbydiscuz @ Mar 14 2025, 03:29 PM)
The standard practice is you start renovation according to the handover and fit out date stated in the LO. Don't need to wait for TA.

Don't tell me 4 months already you still not yet start your renovation. If I landlord I also find other tenant.
*
What if tenant proceed to do renovation all everything.

Then owner decided not to rent. And reimburse back the previous deposit? Like cheating the tenant to make free renovations to them
KitZhai
post Mar 14 2025, 03:42 PM

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QUOTE(keybearer @ Mar 14 2025, 03:58 PM)
Wait why kena wait for Tenancy Agreement?
Last time I got letter offer got written there must complete renovation do everything by a specified "Commencement Date".

Retail lot for mall tenancy also.
*
Imagine like this, tenant do all renovation. Then owner gostan don't wanna rent. Owner decided to get himself penalty only by giving back the tenant the deposit and the rental as compensation.
poweredbydiscuz
post Mar 14 2025, 03:55 PM

 
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QUOTE(KitZhai @ Mar 14 2025, 03:40 PM)
What if tenant proceed to do renovation all everything.

Then owner decided not to rent. And reimburse back the previous deposit? Like cheating the tenant to make free renovations to them
*
Then it's a breach of contract by the landlord and they can be sued for compensation on loss or damages caused by it.
TSeldenring
post Mar 14 2025, 04:01 PM

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Thanks all!

Because as this is a huge sum investment, we have raised our concern that we need the TA due to worry finer small prints we might disagree.

2. Thats why we produce all drawings, 3d, everything in the meantime waiting the TA which landlord mentioned TA should be ready a while more only...

3. Another reason is, again as a huge investment - they provide us Capex for ground works such as flooring and aircond (abit la) - supposedly to be issued after sign TA that mentioned in LO <-- maybe thats why they refused to issue.

4. Question of why wait 4 months... because we continuously chase, they ghosted us as well - We actually chasing for holidays sales that time. Now we missed it.

5. Then tertiba come back and bite us say we didn't do anything.

This post has been edited by eldenring: Mar 14 2025, 04:10 PM
TSeldenring
post Mar 14 2025, 04:02 PM

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Another thing is we actually started some of the works, but as TA nowhere to be seen, we begin to worry.

During the 4 months, we continuously chase TA but no new

This post has been edited by eldenring: Mar 14 2025, 04:05 PM
chuan88
post Mar 14 2025, 04:10 PM

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7. We chase Tenancy Agreement to start work, they delayed almost 4 months - then out of sudden terminate everything

You didn't start do your renovation during this 4 months?

Did Landlord issue handing over list to you?
TSeldenring
post Mar 14 2025, 04:12 PM

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QUOTE(chuan88 @ Mar 14 2025, 04:10 PM)
7. We chase Tenancy Agreement to start work, they delayed almost 4 months - then out of sudden terminate everything

You didn't start do your renovation during this 4 months?

Did Landlord issue handing over list to you?
*
Yes they handed over after LO signed, but not complete. Means for example we rent 5000sqft. They only handover 3000sqft. Another 2000sqft not fully handover.

My contractor mentioned if they issue start work, all manpower will go in, cannot halfway here halfway there. This will incur huge cost.

This post has been edited by eldenring: Mar 14 2025, 04:13 PM
keybearer
post Mar 14 2025, 04:46 PM

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QUOTE(KitZhai @ Mar 14 2025, 04:42 PM)
Imagine like this, tenant do all renovation. Then owner gostan don't wanna rent. Owner decided to get himself penalty only by giving back the tenant the deposit and the rental as compensation.
*
Brother deal between nation also got people gostan, they can still settle it out at world court (ICJ).

Also depending on the term also, on grounds of technicalities the landlord might maintain the stance that TS might have not upheld his end of the deal, hence not proceeding with the rental.
Yes it fucking sucks when the landlord do this kind of shit for whatever reason, but they're the landlord you're the tenant at the end of the day.

In this case all you can do is clarify on what grounds they've terminated the deal, consolidate all proofs & records surrounding their reasoning and initiate legal.
Regardless of how the case proceeds, all the while you're still out of retail lot, red in your balance, still have to pay for lawyer and for them it's just a empty lot without tenant as their legal dept. (already on payroll) attend your case.

Recently read a case where the mall did a 'constructive dismissal' to a tenant so that some new PRC player can come in to rent out the bulk of the floor.
hoonanoo
post Mar 14 2025, 04:46 PM

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QUOTE(KitZhai @ Mar 14 2025, 03:40 PM)
What if tenant proceed to do renovation all everything.

Then owner decided not to rent. And reimburse back the previous deposit? Like cheating the tenant to make free renovations to them
*
you renovate your shop let say, to show Osim products, but new tenant come in is Maxis.

sure have to demolish lah.

All different interior design la

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