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When to transfer the deposit and advance to the landlord

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  1. #21

    The provisional agreement that you sign is binding. That is THE CONTRACT.

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  2. #22

    Join Date
    Jan 2021
    Posts
    20

    I do not have a provisional agreement. Just a tenancy agreement


  3. #23
    Quote Originally Posted by Tc69:
    It's not so much I don't trust the landlord but I come from the Uk and we never handover deposit cash to the landlord but it goes to a tenancy deposit scheme After the tenancy agreement is signed by both parties. In my opinion, I should be a bit wary of handing over large sums of cash to people I have only just met a couple of times without a legal contract.
    If you are really worried, and the amount is a large one, you could consider using the services of a solicitor. This would cost you a few thousand dollars (it was around 3000 some years ago, using a mid range local solicitors firm). The tenancy contract usually has a clause stating that Each party bears its own solicitors costs. Just tell the agent that your solicitor will be representing you in this particular transaction. My guess is that most agents will find it troublesome and apart from trying to talk you out of it ("aiya, so troublesome, no need to spend this money la, no use ar, I do it better.... etc), he/she will probably require you hand over a deposit first (not the full amount comprising the security deposit and the first month's rent) when he goes get the landlord's signature, and ask you for the rest when he comes back to you with the signed contract.

    Another option for consideration: Maybe say to the agent: look, here is a deposit of $xxxx it is to confirm my intention/offer to rent the place. I have signed the contract and added a sentence in the contract saying that the landlord must sign within 24 hours (before xx hours on xx day), otherwise my offer is withdrawn and the deposit must be returned to me in full. I will meet you again tomorrow at this time in your office. I have prepared the rest of the money, and once you (mr/ms agent) come back to me with the signed contract, I will hand over the rest of the monies immediately.
    Say something to the effect of: I am looking at other properties as well, so if the landlord doesn't sign, or takes many days before signing, I need to consider other options...

  4. #24

    Join Date
    Jan 2021
    Posts
    20

    Hi everyone,

    Thanks for the advice and help. In the end, I just transferred the deposit+advance funds directly to the landlord's bank account in the morning of the day we met up to sign the tenancy agreement. To my relief, the landlord did not do a "runner" - we met up and signed the tenancy agreement and I now am going to move into my first HK apartment!

    I realise that the systems here are a bit different to what I am used to. What may have complicated things a bit is that we did not go through the "offer" stage (where I think it is customary for the renter to pay a month's deposit?), and instead moved directly to the tenancy agreement. Anyways, folks on this board plus my friends in HK convinced me that it was normal to send the funds to the landlord in advance of the tenancy agreement being signed. I do hope that there are no abuses of this trust system in the future!


  5. #25

    If you had done a provisional tenancy agreement, you could have gotten 2 weeks rent free before the start of your official Formal tenancy Agreement.

    Your landlord benefitted because he got all the money up front and no rent free period


  6. #26

    Join Date
    Jan 2021
    Posts
    20

    I have got two weeks rent free without a provisional tenancy agreement. It was not an issue.


  7. #27

    Join Date
    Sep 2018
    Location
    香港特别行政区
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    2,841
    Quote Originally Posted by dinosaurs88:
    If you had done a provisional tenancy agreement, you could have gotten 2 weeks rent free before the start of your official Formal tenancy Agreement.

    Your landlord benefitted because he got all the money up front and no rent free period
    I've never had a provisional tenancy agreement and always gotten the two weeks rent free. It's pretty much standard practice.
    shri likes this.