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Current flat sold to new owner, do I need to re-sign the contract?

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  1. #1

    Join Date
    Oct 2013
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    Current flat sold to new owner, do I need to re-sign the contract?

    Hi everyone,
    I need some advice regarding my housing contract and I'm not sure who to ask in real life.
    So basically the flat I'm renting was sold last month by my lovely landlord to a property development company which bought the flat and my contract. Would I need to sign another contract with the company before I start paying rent to them? The previous tenancy agreement specifically states that the contract is between "[name of landlord] (HKID #) and [my name] (HKID #)".
    The investment company, aka new landlords, texted me today to ask for the receipt of my rent payment, and when I called them to ask, they said they bought out my contract and hence I need to pay without signing a new contract that states the agreement is between us and not my old landlord. I also received a lawyer's letter a few weeks ago stating:
    "... our client [the investment company] has purchased the above property from [landlord's name] subject to your existing tenancy... our client is now the legal owner and the landlord of the above property by operation of law."
    So in this case, do I need to sign a new contract with them so it's between the investment company and I, or is it okay to pay them under the old contract which has my old landlord's name since they bought it out?
    THANKS! Sorry I know that was long and convoluted but I'd really appreciate any advice, or a point in the right direction.
    In summary: flat sold by landlord to investment company who is asking for rent. Under law, do I need to sign a new contract or continue paying under the old one?

  2. #2

  3. #3

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    From: GovHK: Renting a Domestic Property

    Your landlord will usually inform you about the sale of the property. If no new agreement is made between you and the new owner of the property, the terms of the existing tenancy will apply. Remember to clarify whether the previous or the new landlord is responsible for refunding your deposit.



  4. #4

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    From the Community Legal Information Centre website:

    2. My landlord has informed me that the property I am renting was sold recently. I was also told to pay rent to the new landlord on the next due date. Can I object? Will my interests under the "old" tenancy be protected?

    The landlord, as the owner of the property, is fully entitled to sell the property. If there is a tenancy subsisting at the property, it is likely that the property will be sold subject to the tenancy. That is to say, the new owner will be aware of the tenancy and will expect to collect rent from the tenant. The agreement for sale and purchase made between the old owner and the new owner should also have specified that the new owner will inherit from the old owner all of the rights and liabilities under the tenancy. Therefore, a tenant’s rights and liabilities under the existing tenancy will generally remain unchanged.

    However, the deposit paid by the tenant deserves particular attention. According to a judgment made by the Privy Council (the final appellant court for Hong Kong before 1 July 1997) in 1986, the covenant made by a landlord to return the deposit to a tenant is a personal promise, and is thus enforceable only against the landlord personally but not against the new owner. Therefore, unless there are some other arrangements or agreements, the new landlord is not liable to the tenant in respect of the deposit paid to the old landlord. The tenant should make sure that the old landlord has transferred the deposit to the new landlord so that the tenant can recover the deposit from the new landlord.
    CLIC - Landlord & Tentant :My landlord has informed me that the property I am renting was sold recently. I was also told to pay rent to the new landlord on the next due date. Can I object? Will my interests under the “old” tenancy be protected?
    HK_Katherine likes this.

  5. #5

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    Screw the re-signing contract part, focus on WHO the feck has your security deposit and who will give it back, get that sorted out 1st and deal with the other stuff later

    If you have rec'd a lawyers letter telling you to pay the new owners the rent then just follow that, count yourself lucky the new LL didnt suddenly increase the rent and ask you to sign a new contract or move out.


  6. #6

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    As others have mentioned, just keep paying under current terms, but Tbh start looking around for other places. These are property investment companies, they are there to make money with little consideration for you. Be it a long term investment, reclaiming the property for other uses or higher rent, they see the property you are living in as a money maker. Rarely do these companies leave the existing tenants alone.


  7. #7

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    No need to sign the new lease agreement. Your previous lease is legally valid until it expires. You can pay the rent as per the agreement to the new Landlord.


  8. #8

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    BTW, the HKCLIC has both iOS and Android apps if you need basic legal information on the move.