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Housing Situation Provisional Tenancy Agreement HELP!

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  1. #1

    Housing Situation Provisional Tenancy Agreement HELP!

    Hi guys,
    Don't really where to ask this so posting here.

    So yesterday i signed a provisional tenancy agreement for a flat with an agent for 10k HKD, with formal provisional agreement to be signed in 7 days.

    Suddenly, the agent calls me today and tells me that I need to sign the formal agreement by today or tmr, as the landlord will be out of town in 2 days.

    This appears fishy for me for following reasons:

    It seems the Landlord really wanted me to sign the formal agreement as fast as possible. When I was signing the provisional agreement, the initial date for the formal agreement is set to be in 15 days, but then the LL called the agent at last minute and requested an earlier formal agreement date to be signed in 7 days. I agreed at the time. But now today the agent calls me and asks me to sign the formal agreement today. Total payment would be 33k for 3 months, and Im not ready to pay that much yet. Even when I was viewing the flat, it seemed that the agent wanted to me rent the flat asap.

    What would you guys do in this case?

    If I break the provisional agreement, does it mean that I only would lose 10k? (if that is correct, then I'd rather lose the 10k than rent from a shitty LL)

    clause in provisional agreement contract states that:
    If the Tenant fails to sign the formal tenancy agreement within the said date, the deposit will be forfeited and the landlord shall have the right to lease this property to other parties'
    'If either the LL or Tenant fails to sign the formal tenancy agreement within said date, the defaulting party should pay our company's fee of HKD 15k (<- does this mean I have to pay additional 15k if I forfeit?)
    Last edited by cluless_nomad; 04-03-2019 at 08:59 PM.

  2. #2

    Join Date
    Dec 2005

    Provisional agreement is legally enforceable. You can delay the sugning until 7th day saying, you have to arrange for the deposit and see what is the response. If you default, you will lose the deposit+company fee.

    Did you compare the rents nearby from other agents or online? Maybe the rent you are paying is too good and they dont want you to backoff!!

    Make sure to read the below and ask questions when you sign for the tenancy agreement!!

    You can also do a land search and determine the ownership and property is mortgaged or not. If mortgaged, landlord must get consent from mortagee before letting.

    Last edited by shafiq; 04-03-2019 at 09:34 PM.

  3. #3

    Join Date
    Feb 2011
    Hong Kong

    If you forfeit now you lose the initial deposit made already plus the agency fee for both sides. So usually your deposit + one month rent.

    You can delay the formal signing or explain you don't have the money now. So can you write a post dated check? Or sign the formal now and pay the deposits later? Just bargain, or if you are looking to back out the landlord will probably just wait to sign the formal TA later to avoid losing money. Plus he could sign it and give to the agent, he doesn't have to be in town for it.

  4. #4

    Join Date
    Sep 2012

    Our family lawyer told me many years ago never to sign any provisional tenancy/sale agreements. What's the point? If you are ready to sign, sign the final thing, after reading it thoroughly. If the final contract isn't ready, then wait until it is - you might not like the result!

    jrkob and shri like this.

  5. #5

    Join Date
    Dec 2009
    Quote Originally Posted by cluless_nomad:
    Total payment would be 33k for 3 months, and Im not ready to pay that much yet.
    So you could pay the 33K in 7 days as agreed?
    Last edited by emx; 05-03-2019 at 08:18 AM.
    shri likes this.

  6. #6

    Join Date
    Dec 2002

    Seems like you have a case of buyer's regret? Remember, "shit happens" even with landlords. Not everyone who owns a property in this town is a scumbag / slumlord.

    1) Has the landlord signed the PA and do you have a copy of the signed agreement? If thats the case, the landlord cannot change the dates and they're as liable as you to complete on the 7 day mark - not earlier, not later.

    2) If you do like the place, can you go back and tell the landlord and get them to sign the final agreement and you will sign on the date assigned and exchange contracts / payments and take possession on the date assigned in the provisional agreement. Payment can be made by cashiers cheque if needed to the agent or deposited directly to the landlord's account.

    This would apply if the landlord has an emergency is going out of town and trust you and the agent to do the right thing.

    Bottom line - if you've signed the PA, you cannot back out without paying your dues and neither can the landlord.