Landlord Selling Unit, What Can Tenant Do?

[Saint]

1) The property is sold and the new owner has to honour the TA in full, x900, that's the law, not a lot the new owner can do about it

But nobody can point to that law or at least a reputable source of information and this is where I have a bit of the problem. You said earlier you were told... by whom? I have no reason not to believe you but would welcome some more documented fact based knowledge.

Well besides it being clearly stated in my TA, I discussed this with the Agent and she stated without doubt the property has to be sold with the current TA, unless an agreement can be met with myself. The property is being marketed online stating that it's currently tenanted until blah blah. The 5 prospective buyers when they came and viewed the place were made well aware who Mrs S and myself were.

[x9200]

putting legality issues aside, and we now talk about fairness and reasonableness: don't u think it is very subjective and that it depends on which side of the fence u r on? would u as a tenant think it is fair to move out just cause there is a transfer of title to a third party when technically legally the TA is in full force and effect? would you then for eg as a beneficiary think it is fair to have to wait till the TA expires to be able to sell/encumber or do other things to the property when u as that third person did not sign the TA?

Of course it is subjective but as long as the rules are clear and know to all the parties right from the start and there is an agreement between all of them it is always fair and reasonable unless you simply question the very law. If I know up in front, before signing the sales agreement that I have to take over the TA with existing tenant that would be perfectly fair and reasonable to me to wait till it expires. I had a choice. Nobody forces me to buy it. Same as a tenant: either I claim my damages/expenses from the existing landlord or enjoy spending my time in the property till the lease period is over, both are fair and reasonable.

A different thing: why do you say is not economically realistic to look for such enforcement? I thought such lease not exceeding 2yrs is in jurisdiction of the SCT.

[QRM]

Our unit was sold midway through our tenancy, we received a letter from the new landlords lawyers stating that the deposit has been transfered, and we should pay the rent into a new account.

The big plus was the new owner wanted to move in when the lease expired. He was going to gut and redecorate the place so our whole deposit was return at the end of the lease with no deductions.

[brittanny]

you can only run to the SCT for specific claims only, annex of the claim form here: http://app.subcourts.gov.sg/Data/Files/ ... imForm.pdf

u may have confused yourself with the box named "a breach of landlord's obligation", meaning the tenant can only file at SCT if he wants to claim damages due to the old landlord's breach of contract before the TA's expiry.

a claim filed at SCT is to resolve parties' to the contract's claim(s).
no where in it states that you can claim against a successor-in-title for specific performance of the clause, so of cos you need to go to subordinate courts for that.

hence i have said in my first initial posting, it is a clear cut breach of contract by the landlord and that it is far easier (and cheaper) to claim from the landlord than to ask for specific performance.

SCT is also not the only place u can go to for claims, CASE is also empowered to handle landlord-tenant claims

[Teckie]

Thanks brittanny for your usual care of the details and comprehensive overview. I have one question though:

V. important: read your tenancy document and note whether there is an assignment/successors benefit clause. It is a very crucial term in a contract to bind the successor-in-title:
- if there is a provision then yes the new landlord is bound to observe/perform the contract

How any clause in the TA between the tenant and the old landlord can effectively bond a third party which is the new landlord? It seem unreasonable.

U can only assign benefits - not obligations. Obligations have to be novated.

[jjk]

Okie...to update (I'm the OP of this thread).

My landlord has sold the place. New owner will be accepting the TA. Yay.... Means i don't have to worry.

Now I'm just curious of the next step. Do I need to sign a new TA (with the same T&C in prev TA) with the new owner? With same T&Cs, does that mean, if there's a clause for a 6 mth extension of the lease at current rate, I can exercise it? I had intended to exercise that option with the prev landlord...

[therat]

no need to resign new TA with the new owner.

Since new owner agree to take over the existing TA. All the T&C has previous agreement with the ex-owner, the new owner has to honor.

Everything still the same except you need to pay your rental to the new owner account.

[ScoobyDoes]

if there's a clause for a 6 mth extension of the lease at current rate, I can exercise it? I had intended to exercise that option with the prev landlord...

Yes, but check the wording of the clause.... there might be a term that says "Upon mutual agreement and at current market value deamed appropriate by the Landlord" or words to that effect in whole or partial.

[jjk]

oh yah...I checked again. That clause states "at the SAME rate, provided the unit has not been given up for enbloc". Nothing about mutual agreement...Enbloc signing is in progress, but I think a bit unlikely for that place to achieve 80%. After 5 mths since initiating the enbloc process, it's only 35% signed.

[k1w1]

I'd also add that you need to ensure that there is SOME documentation somewhere that states who has your deposit. At the end of your tenancy, you do not want to find the two owners are pointing fingers at each other and you're left without your money...

[therat]

I'd also add that you need to ensure that there is SOME documentation somewhere that states who has your deposit. At the end of your tenancy, you do not want to find the two owners are pointing fingers at each other and you're left without your money...

The deposit will be with the new owner.
It's standard market practice.
The lawyer will ensure the deposit is transfer to the new owner

[k1w1]

That's not what was told to me by my agent when I was in this same situation two years ago... She said it's a real area where tenants can get royally shafted after their house is sold to a new owner.

[therat]

When I brought a property with tenancy, the lawyer ensure the original TA, deposit, balance rental was hand over.

[ScoobyDoes]

That's not what was told to me by my agent when I was in this same situation two years ago... She said it's a real area where tenants can get royally shafted after their house is sold to a new owner.

Last year I got a letter from the new landlord's lawyer stating clearly the deposit was transferred etc.

[k1w1]

I'm surprised an agent wouldn't know about it if it were standard practice and the law, but ok.

I guess the legal transfer documents are something tenants in this situation should expect to see happen then. Good news.