Tenancy Agreement Question

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zonemelt
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Tenancy Agreement Question

Post by zonemelt » Fri, 01 Apr 2011 10:34 am

Folks,

We're reviewing a tenancy agreement for a condo unit that we have signed the LoI for. Actually we have signed the LoI but only one of the two landlords has so far, the second is flying in this evening and is due to sign then.

The deal is being cobroked, and we trust our agent but obviously don't know what the other agent is like. We feel that one of the landlords is difficult and have been making sure that we're not open to anything as trust is not very high. Unfortunately we love the unit and the development so we're still willing to take up a lease!

Anyway my question relates to the TA. We are at the second draft stage and some of our requests were granted, but one section was updated without our request, so I would presume that it could have been at the landlords' request. It relates to what would happen if the unit was sold.

Does it look as though something untoward is being done, or could it just be that the landlord agent has made a copy/paste error.

Thanks!

In draft 1 there was a statement:

Was (draft version 1): "In the event the said premises shall be sold by the Landlord , the Landlord shall
be at liberty to terminate the tenancy hereby created by giving 03 months notice
in writing after a minimum occupation of 12 months from the commencement
date and shall refund the deposit to the tenant without interest. Neither party

shall have any claims against the other.
"

Current (draft version 2): "In the event the said premises shall be sold by the Landlord, the Landlord shall
be at liberty to terminate the tenancy hereby created and shall refund the deposit
to the tenant without interest but otherwise the same or part thereof shall be
used by the Landlord to offset any outstanding payments/damages owing by the

Tenant without prejudice to the right of the Landlord to recover all monies which
may become due or payable by the Tenant under this Agreement. Once deposit
has been refunded, neither party shall have any claims against the other.
"

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nakatago
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Post by nakatago » Fri, 01 Apr 2011 10:52 am

TL;DR

However, if you have any doubts, bring it up with your agent. Clarify anything unclear. Point out any mistakes. Review the document and give it due diligence--make sure anything you've agreed upon is put down in writing.
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Post by Saint » Fri, 01 Apr 2011 10:57 am

I wouldn't sign a TA with either of these clauses, especially not the 2nd one! It is standard that a property has to be sold with the current TA. See below what I would expect your TA to say

(l) During the currency of this tenancy, to allow the Landlord or its representative at all reasonable times and by prior appointment to bring any interested parties to view the said premises in the event of a prospective sale thereof. The said premises shall be sold subject to this tenancy.

zonemelt
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Post by zonemelt » Fri, 01 Apr 2011 1:19 pm

Saint wrote:I wouldn't sign a TA with either of these clauses, especially not the 2nd one! It is standard that a property has to be sold with the current TA. See below what I would expect your TA to say

(l) During the currency of this tenancy, to allow the Landlord or its representative at all reasonable times and by prior appointment to bring any interested parties to view the said premises in the event of a prospective sale thereof. The said premises shall be sold subject to this tenancy.
Thanks. What do you mean by "subject to this tenancy"?

There was an additional earlier clause to the effect of the rest of your statement above. It was:

To permit persons with authority from the Landlord at all reasonable times by prior
appointment to enter and view the Premises whenever the Landlord wants to sell the
Premises.

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Post by zonemelt » Fri, 01 Apr 2011 1:19 pm

nakatago wrote:TL;DR

However, if you have any doubts, bring it up with your agent. Clarify anything unclear. Point out any mistakes. Review the document and give it due diligence--make sure anything you've agreed upon is put down in writing.
Am bringing it up with agent, but thought I would get a second opinion here!

What does TL;DR mean?

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Post by Saint » Fri, 01 Apr 2011 1:24 pm

zonemelt wrote:
Saint wrote:I wouldn't sign a TA with either of these clauses, especially not the 2nd one! It is standard that a property has to be sold with the current TA. See below what I would expect your TA to say

(l) During the currency of this tenancy, to allow the Landlord or its representative at all reasonable times and by prior appointment to bring any interested parties to view the said premises in the event of a prospective sale thereof. The said premises shall be sold subject to this tenancy.
Thanks. What do you mean by "subject to this tenancy"?

There was an additional earlier clause to the effect of the rest of your statement above. It was:

To permit persons with authority from the Landlord at all reasonable times by prior
appointment to enter and view the Premises whenever the Landlord wants to sell the
Premises.
It means if the apartment is sold the new owner has to take over the remainder of the TA

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Post by Saint » Fri, 01 Apr 2011 1:29 pm

Don't even sign the TA with the current 2nd version as you have no protection from being turfed out after even 1 month. I would quite confidently bet that the current owners are looking to sell the apartment and probably on the market for sale already.

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Post by zonemelt » Fri, 01 Apr 2011 1:44 pm

Thanks!

Well there's no way we would sign with the second version. You make an interesting point about it being possibly up for sale already. If they push back on it, then that could well be the reason for this clause coming into it....

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Post by nakatago » Fri, 01 Apr 2011 2:20 pm

I would like to point out that based on the excerpts from your tenancy agreement, wording was intentionally confusing. I've seen several TA's already and none of them are as obfuscated as that one. Heck, I've read clearer and less ambiguous patent documents than that TA.
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Post by x9200 » Sat, 02 Apr 2011 7:48 am

Clearly abusive clauses (both versions). For all the TA we've had it was the way Saint quoted. Do not sign it.
The phrase "The said premises shall be sold subject to this tenancy." is not truly necessary but if you manage to get it in it will help a lot to clarify this part.

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