Property Nightmare Stories #8: Why Is Your Contract Different from Mine? Why Do I Have to Pay You RM24,000 to Move Out?

August 24, 2017

 

Property investment is the hype but property nightmares are often shoved under the carpets. In this series of Property Nightmare Stories, PropertyGuru gets down on the ground to find out firsthand what can happen when the tenant or landlord voids a contract.

 

The Property is a shop office in Kota Damansara. The Landlord has let it to the Tenant for a two-year period for rent of RM2,000 and the agent has prepared the Tenancy Agreement. After signing and stamping, the Landlord and Tenant held one copy each. The agent did not keep a copy.

A year later, the Tenant wants to terminate the agreement by serving a 60 days’ notice to the Landlord and claimed that the Agreement allowed him to do so.

The Landlord’s copy however, states that the Tenant must rent the Property for a full two-year period and compensate the Landlord for the remaining unexpired term of the tenancy in the event of early termination.

Both Tenancy Agreements have different clauses and the parties proceed to bring the case to Court.

 

Solutions

 

In view that the above parties have intended to resolve the issue in Court, witnesses will be called by both parties to collaborate and verify each party’s version of facts. The agent who attested the Tenancy Agreement is likely to be a material witness.

Alternatively, parties may seek independent party’s verification (in this case, the stamp office) of a copy of the stamped Tenancy Agreement as parties may have sent the Agreement for stamping prior to the commencement of the tenancy, provided a full set of the Tenancy Agreement was sent to the stamp office for stamping.

To prevent this situation from happening, parties can:

 

a) Initial every page of the agreement to ensure that the pages/clauses cannot be changed.

b) Engage a solicitor firm to prepare the tenancy agreement as the solicitor attending the matter will usually be a witness to the execution of the tenancy agreement and it is a practice that the solicitor firm will keep an extra copy of the tenancy agreement after the tenancy agreement has been executed and stamped.

To visit some of the other nightmares, look for the one you resonate with most:

 

 

This article was contributed by Alvin Teo (Advocate & Solicitor- Messrs Mak, Ng, Shao & Kee) and Nicole Ng (Advocate & Solicitor- Messrs Elizabeth Siew & Co). For more information or legal assistance, contact or email them at 07-3341922 (alvinteo@mnsklaw.com) or 03-8075 0901 (nicole.ng@esc.legal).

Gursharan Singh
Aug 24, 2017
The land lord is lucky the tenant is leaving with notice. Tenant could have made life difficult for the owner by not paying the rent and/or damaging the property and then just leave where the owner may not have been able to do anything except waste more money on a civil case where the beneficiaries may be the lawyer and still be the loser as in most cases it may be impossible to trace the delinquint tenant or recover any arrears. THIS HAPPENED TO ME AND I LOST RM26K IN RENT ARREARS AND RM8K IN UNPAID UTILITIES (no thanks to utilities companies who took no action on non payment of bills for over ten yrs and RM5K for repairs.
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