Landlord sells Apartment - compensation?

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Alex3
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Landlord sells Apartment - compensation?

Post by Alex3 » Sat, 21 Feb 2009 2:11 pm

We have been informed verbally by our landlords agent that our apartment has been sold with vacant possession given to the new owner who intends to move in - in about two months time. We have not yet received official notification (by letter) from the landlords lawyer.

The agent did not discuss any type of compensation other than to say "I will help you find a new apartment"....as they do.

We are only 12 months into a 24 month lease contract and there is nothing stipulated in the contract about what happens if the landlord sells.

What do people think would be reasonable compensation in these circumstance to seek from the landlord considering we are quite happy here and don't really want the hassle of moving. We have young children in a nearby school and work is walking distance?

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Segue
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Post by Segue » Sat, 21 Feb 2009 2:41 pm

If your contract does not have a clause that says the lease agreement survives with a change of ownership then I guess there is not much you can do.

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Alex3
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Post by Alex3 » Sat, 21 Feb 2009 2:52 pm

The way I understand it is if we were to break the contract by moving out mid-term then we would be liable to the landlord for the remaining months of rent. So does the same not apply to the landlord when he breaks the contract by selling mid-term with vacant possession to the new owner?

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Post by k1w1 » Sat, 21 Feb 2009 3:38 pm

Yes, the same rules absolutely apply - and they know it. They have to buy you out of the lease, but in a different way than you would have to buy them out...

My last TA had no mention of "what happens if the LL sells" etc, and when they broke the lease (which was a legal contract as I had paid the duty stamp) it was the height of stupidity in the market, so the cheapest place (that was similar condition/area/size) was about $1000 a month more than what I was paying them. I had ten months left on the lease, so they had to pay me (once I found a place I wanted and had made a verbal offer on) the difference in rent for the remainder of the lease period. They also had to pay my moving costs.

I would also tell them they owe you for any agents fees you may have paid to get into the property or any that you have to pay moving out.

You have a contract that states you have access to this property for a set period of time. If they break it, they need to make sure you are not out of pocket for moving.

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Post by Segue » Sat, 21 Feb 2009 7:10 pm

I don't know what its like in Singapore, but in the US you need a specific clause that says the contract survives the change of ownership (I have it in mine in Singapore but I had to ask for it).

Otherwise, the rent contract only specifies the rights of the owner, and yes, it would be one-sided but that is the contract. Unless of course, there are specific laws in Singapore that override the terms.

Check your contract for the specific text:

" THE LANDLORD" which expression where the context so
admits shall include all persons having title under the LANDLORD. its successors in title and assigns

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Post by ScoobyDoes » Mon, 09 Mar 2009 4:05 pm

I went through a similar situation a year or so ago....... I had my TA checked several times and whilst there was no specific clause about the agreement surviving a change of owner, the fact is the contract was for 2+1years. I paid stamp duty and the terms were legally binding as a result.

The only way i was to move was through compensation and this was agreed, at least by the old landlord.

In the end my new landlord let me stay, and in fact i am just agreeing with them now to take up the 1-yr option given i feel rentals will be lower next year than now. All said, i am pleased to have more reason from my current landlord than the previous one, maybe yours will be a similar case.

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