Buying and Tenancy



ORIGINAL POST
Posted by dimac4 19 yrs ago
Have found a house - there are currently tenants in it whose lease is up in a few months. What are the regulations with regards to asking them to move out? They have been there for 2 years this August so their agreement was signed August 2004. is this when the 'new' laws came into effect?


I can't afford to have tenants in the house as their rent is way lower than the mortgage, and I can't afford our rent and a mortgage payment. What does the current owner have to do to achieve vacant pssoession for us?


Just trying to figure out if it is possible.

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COMMENTS
whoever 19 yrs ago
My inlaws are looking to buy in a large development at present, where many professional investors buy. All the mid-floor units of their size are offered between $12 million and $13 million. Except one, which has a tenant and is offered at just $10.5 mn.... maybe that tells us that even pros (who have experience and large legal depts behind them) don't want the hassle.



You may also find your lender (depending who it is) won't fund until you have vacant possession.


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dimac4 19 yrs ago
Interesting.. My understanding of the The new laws allow the landlord and tenant to agree to part ways at the end of a contract. The contract will be up in August, we are happy to wait until this time. There is no longer a requirement for the landlord to give 12 months notice or the tenant to have protection for longer than the tenancy agreement. It was made easier for landlords to 'evict' tenants to allow for market forces and free up the market.


I do not want tenants oldhand, so I am not wanting all the baggage that goes with that - I want to buy with vacancy at the end of the lease so I can move in. It is at least 10% below market value, which is the only way i can afford it. I just wanted to know if the new laws have really made it easier to have tenants leave at the end of the contract. We have been told that when our own lease is up at the end of the year the landlord will not be renewing because they want to move in - or sell it. We have accepted that and now looking for a place to buy.

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whoever 19 yrs ago
Here's the fine print...

http://www.rvd.gov.hk/en/doc/gazette_e.pdf



Here's the Jack and Jill version:

http://www.rvd.gov.hk/en/doc/SummaryGuide-e.pdf

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dimac4 19 yrs ago
Thanks who ever- it would seem that the tenant can be asked to leave at the end of the contract period, but the snag is the mutual agreement - if it isn't mutual, then is it an agreement and can it be acted upon? Posession is 9/10 's of the law!! ;-) Oh well I can always put the rent up if they don't want to leave so it will cover the mortgage repayments! (They may then be enticed to leave. I am hoping the current owner will throw a few thousand dollars their way to help them agree to the inconvenience - I suppose it comes down to how keen he is to sell it.



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dimac4 19 yrs ago
It surprises me how hard it is for the owner to reclaim their property in HK from the tenant. In Australia - you give 2 months notice that vacancy is required, (more if you can) and that is that - legally binding and they have to leave. Ther eis usually only a 6 month lock in for a tenancy agreement - after that a tenant only has to give 2 weeks written notice they are leaving.

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whoever 19 yrs ago
It's all about history.... remember that until 1960 the overwhelming majority of the population in HK lived in shanty towns with no rights whatsoever. This was finally recognised as intolerable, public estates were built, and the pendulum of landlord/tenant law swung too far in favour of the tenant. It is now swinging back again in favour of the landlord.

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annebin 19 yrs ago
We have been renting our flat since October last year, and 3 months ago, our landlord had potential buyers who came to view the flat. There were 2 sets of buyers, one was a couple looking into moving in ASAP. Since we still have a standing contract, they offered us compensation (+ they will shoulder our moving costs, and return our 2 months security deposit) for us to leave soonest.


Their offer was fair so we considered and took off to find another flat. We saw it as a win-win-win siutation for all 3 parties-- landlord, buyer and us.. Thing is, the 2nd set was the successful buyer and not looking into moving soon but bought it as an investment, so no offer of compensation, etc.


Anyway, if you really want to buy the flat, try to talk to the tenant (or maybe through the agent) if they are willing to negotiate.

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whoever 19 yrs ago
Be very careful about talking directly to the tenant... As annebin says, do it through an agent or a lawyer.

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annebin 19 yrs ago
By the way, we were liaising all that time with the agent. Only when we were in agreement with the potential buyer's offer did we sit down and talk directly with them (or they with us, for that matter).


Agree with you Whoever about discussing first with a lawyer or the agent..

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