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Evicted for building demolition - tenants rights

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  1. #1

    Join Date
    Jan 2020
    Posts
    9

    Evicted for building demolition - tenants rights

    A tenant who has recently signed a commercial lease in a building has just been given a notice for eviction.

    I wanted to find out what rights the tenant may have if any?

    I would have thought that there would have had to be some disclosure by the landlord that the building was to be demolished prior to the lease being signed? The tenant moved in a couple of months ago and has now been given six months to vacate. The contract states the landlord is obliged to give three months notice.

    is there any remedy for the tenant? There was considerable cost in the fitting out and logistics of the move.

    thanks


  2. #2

    Join Date
    Apr 2012
    Location
    Hong Kong
    Posts
    1,044

    that is why you need to read the contract carefully. Commercial landlords here are vampires, they will suck your blood dry. There should be a clause where if they break the contract before they give you that many months of penalty. If there is no such clause then you got screwed.
    Try talking to them, if they are any of the big ones like wharf/sung hun kai/new world etc.... good luck with that!


  3. #3

    Join Date
    Dec 2018
    Posts
    980

    Just about every commercial lease I have seen has a demolition or refurbishment clause allowing the property owner to end tenancies early if the building is to be demolished or substantially refurbished. It's a global practice (not limited to HK). The landlord is not breaking the contract - it is exercising rights continued in the contract.

    Tenants should do homework before entering into a lease and (i) get a representation that there are no plans to demolish the building and/or (ii) demand a reasonable period of notice to be given if the clause is triggered. In this case the landlord is giving twice the contractually entitled notice period.

    shri likes this.