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 Selling house with tenancy, What if

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TStzeyin
post Jul 8 2008, 11:22 PM, updated 18y ago

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IF an owner sell her house with tenancy (12months to go) but didn't include it in the S&P to 'kuasa' to the new owner (buyer), now tht the buyer plan not to rent to the tenants when he officially receive keys and be the owner, who will be liable for breaking the tenancy agreement with the tenants?
Pai
post Jul 8 2008, 11:51 PM

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Yes. New owner is not bound to any previous contract made by the previous owner.
yewkhuay
post Jul 8 2008, 11:59 PM

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my tenancy agreement has a clause : "this agreement shall be binding on the successor-in-tittle heirs and assigns of the parties hereto..."

TS, urs has this clause not ?

Poor tenants if they are not protected by the agreement ...
TStzeyin
post Jul 20 2008, 06:04 PM

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got similiar clause. now the tenant insist on staying in the house until end of tenancy and new owner only compromise to allow tenant to stay for another 6months.

who should be responsible now? previous owner or new owner? the tenancy agreement didn't mention if owner ask for early termination of agreement has to pay anything. and the agreement is not stamped.
mIssfROGY
post Jul 20 2008, 07:07 PM

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shdnt the old owner be responsible? Not stamped ah?? I think then too bad for tenant rite?
??!!
post Jul 20 2008, 10:20 PM

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Not stamping an agreement does not invalidate it. Just that, if the parties wish to stake a claim in court, they have to stamp the agreement. This can still be done at a later stage, albeit a penalty is incurred.
TStzeyin
post Jul 20 2008, 10:58 PM

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say if the tenant refused to move n insist to stay till end of tenancy and the new owner insist them to move , what would happen if they choose to leave it to the court to decide whose fault ( old owner , new owner, tenant) , how long would it take ? does the tenant has to move to let the case settle or stay on?
johnsonm
post Jul 21 2008, 10:33 AM

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tzeyin, the question here is whether the new owner has had notice of the tenant's existing tenancy. if yes, then they are bound to take the property with the tenancy.
TStzeyin
post Jul 21 2008, 06:17 PM

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the new owner is aware of the tenancy but he thought given 3months notice the tenant will move...

the tenancy is not mentioned in the S&P.
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post Jul 21 2008, 09:04 PM

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The new sale agreement...what does it say about vacant possession?..
Is seller duty bound to deliver vacant possession?
Is the existing tenancy referred to in the agreement?
johnsonm
post Jul 22 2008, 09:16 AM

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tzeyin, if the new owner was aware of the tenancy before signing the agreement, then the question arises, why did he not ask for a copy of the tenancy agreement to confirm the notice period? buyers are supposed to make reasonable enquiries before purchasing.

if the sale and purchase agreement:

(i) mentions the tenancy agreement - the new owner is stuck with it.
(ii) mentions the tenancy, but states that it is on a month-to-month basis - the new owner is stuck with it but can terminate with 1 months' notice.
(iii) has no mention whatsoever of a tenancy agreement - the new owner can assume its on a month-to-month basis, and terminate with 1 months' notice.

this is just my opinion. anyway if there is a tenancy agreement and the seller failed to mention it, the seller is gonna get sued by the tenant.
TStzeyin
post Jul 22 2008, 10:11 AM

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now the scenario is seller did mention it, buyer tot given 3months notice (which is the period of the time processing the loan n S&P and transfer name ) is sufficient to ask the tenant to move, so it is not mentioned in the S&P.

now tht the tenants wanto stay till end of tenancy, which is about 10months from now instead of 5months from now.
johnsonm
post Jul 22 2008, 10:26 AM

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what gave the buyer the impression of the 3 months thing? was it the buyer's own assumption or did the seller say that?

why was it not recorded in the s&p that the seller should give notice to terminate the s&p upon signing?
TStzeyin
post Jul 22 2008, 01:31 PM

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the seller mention that before about the 3months.

the buyer never thought of putting it in the S&P
a6meister
post Jul 23 2008, 10:26 PM

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Nice topic, which this thing came through my mind as well. Be low are my agreement, the both clause (4C) and (SECTION 5), is that also mean that if i, as the landlord has the right to terminate the tenancy by given 2 months notice in advance ? Thanks


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TStzeyin
post Jul 26 2008, 09:48 AM

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i think so.........
a6meister
post Jul 31 2008, 12:45 AM

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QUOTE(tzeyin @ Jul 26 2008, 09:48 AM)
i think so.........
*
are you refering to my case ? if that is the answer, thus, it will be an advantage to me as an owner.

This post has been edited by a6meister: Jul 31 2008, 12:46 AM
bearbearhong
post Aug 3 2008, 02:07 PM

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QUOTE(tzeyin @ Jul 8 2008, 11:22 PM)
IF an owner sell her house with tenancy (12months to go) but didn't include it in the S&P to 'kuasa' to the new owner (buyer), now tht the buyer plan not to rent to the tenants when he officially receive keys and be the owner, who will be liable for breaking the tenancy agreement with the tenants?
*
hmm..my first time in this session, and hope my 2 cents opinion helps:=

first of all, is the sale transaction pending completion? if yes, get the seller to rectify it before too late, i.e. to confirm deliver property with vacant possesion -NO tenant inside, do check with the lawyer attending to the sale transaction who prepared the Sale and purchase agreement, check if it is stated clearly in the agreement- seller to deliver vacant possession upon completion ( full settlement of purchase price)

If there is a vacant possession clause, then it is the vendor's responsibility to settle the tenancy lo, so he got to follow the tenancy he signed with the tenant to terminate accordingly, if not he will have to pay interest for late delivery of vacant possession to buyer upon completion of sale transaction (If the lawyer inserted this clause in the agreement la).


biggrin.gif thats my humble opinion la...so best advise to the buyer, is to get the seller to serve notice on the tenant to terminate the tenancy a.s.a.p! before too late...

 

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