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Tenancy Agreement with Renewal Option: Can landlord refuse to renew the contract?

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asked on Aug 29, 2010 at 16:07
by   Daryl
edited on Oct 5, 2016 at 06:29
 
I am a tenant in a condo in Kuala Lumpur with a 2-year lease which also has a one year option. The tenancy agreement states:

If the Tenant shall be desirous of renewing this tenancy for a period of ONE YEAR, he shall have the option to do so provided he notifies the Landlord in writing or to the subsequent new owner in the event of a sale or transfer of the said Premises, not less two (2) months before the expiry of this tenancy, other terms and conditions shall remain unchanged.
My landlord wants me out as he is in the process of selling the apartment. I have told him that I do not want to move and that I will be exercising the one year renewal option.

He says that the one year option has to be mutually agreed and he will not agree to this.

Where do I stand?
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answered on Sep 3, 2010 at 19:36
by   LoyerBrook
He has the Right to sell his property.

If you already stayed for one year, the Option to extend another year's tenancy lies in the hands of the Landlord or the New Landlord, Not yours.
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answered on Sep 4, 2010 at 19:25
by   Daryl
edited Oct 5, 2016 at 06:29
 
Thanks for your response. I don't quite agree with your assessment as the contract clearly states that the tenant has the option to renew for a further one year. In any case I shall consult a lawyer.
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answered on Sep 4, 2010 at 22:41
by   Loya Burok
edited Oct 5, 2016 at 06:31
 
Consult all the lawyers you want. Any owner has the right to sell after giving due notice for the tenant to leave.

@LoyerBrook is correct.  Any tenancy extension has to have mutual agreement. Just imagine if you wanted to quit and the landlord wanted you to stay for another year and another year and so on and so on!
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answered on Sep 5, 2010 at 14:34
by   Daryl
edited Oct 5, 2016 at 06:33
 
@Loya Burok

Thanks for you response but I respectfully suggest that you are either wrong or have not read my post correctly. I agree that the landlord is perfectly entitled to sell the property however that does not mean he can throw me out on the street before the tenancy agreement has ended (including the one year renewal option).

I have carefully read the tenancy agreement and there is no mechanism for the landlord to terminate the agreement. I also believe that the renewal option is a unilateral option of the tenant, not the landlord therefore there does not have to be a mutual agreement. Please note that the renewal option is for a further one year only, it is not an option to carry on renewing every year indefinitely.
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answered on Sep 6, 2010 at 00:28
by   Loya Burok
edited Oct 5, 2016 at 06:34
 
I think I have understood your post correctly.  You seem to suggest that the one year renewal option is binding on the part of the owner if you choose to exercise it and stay a further year after your present year long tenure has ended. If I am wrong I otherwise stand corrected.

I admit I was being a bit facetious in the last sentence in Para one, but the point is there.  According to your argument on mutuality the landlord can make you stay even if you want to quit after the first year.

Interested to know the outcome of your situation.
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answered on Sep 6, 2010 at 01:00
by   Daryl
edited Oct 5, 2016 at 06:36
 
@Loya Burok

You are correct in that I am suggesting that the renewal option is the tenants unilateral option. The tenancy agreement (in my mind) seems quite clear - the contract is for 2 years with a further one year renewal option as per the agreement:

If the Tenant shall be desirous of renewing this tenancy for a period of ONE YEAR, he shall have the option to do so provided he notifies the Landlord in writing or to the subsequent new owner in the event of a sale or transfer of the said Premises, not less two (2) months before the expiry of this tenancy, other terms and conditions shall remain unchanged.
This implies that all the tenant has to do is notify the landlord 2 months in advanced of tenancy expiry that he wishes to stay for a further 12 months and the landlord is obliged to comply.

There is a clause in the agreement which allows the tenant to terminate the agreement after 12 months however there is no mechanism that allows the landlord to terminate the agreement before the expiry date.

In any case, relations with the landlord have broken down and it seems that we are headed for the court.

If my understanding of the Malaysian court system is correct, then it could take at least 12 months for the case to get to court - by this time there will only be 6 months left on the 2 + 1 agreement.

Thanks for your response - it has been appreciated.
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answered on Sep 6, 2010 at 14:56
by   LoyerBrook
PART IV
RECOVERY OF POSSESSION OF CONTROLLED PREMISES

Section 16 (c), (d), (f) (m), (6), Could be used by the Landlord to trick and get rid of you easily.

You have nothing to gain out of Dispute.

You only make One More Lawyer Richer and Laughing Behind You To The Bank!

What is So Special about the RENTED Place that make you Lick, Tick and Stick so much??
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answered on Sep 6, 2010 at 22:23
by   Daryl
LoyerBrook

What is this document you are referring to?
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answered on Sep 22, 2010 at 18:42
by   Daryl
edited Oct 5, 2016 at 06:52
 
Good news - the Landlord has finally agreed that my interpretation of the contract is correct and is willing to settle.
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answered on Sep 25, 2010 at 14:31
by   LoyerBrook
Say what you like!

You are just lucky enough to meet a Timid Landlord, and he is dealing with a Sarcastic Tenant like you!

The Landlord was willing to settle with you simply meant he wanted to solve the problem, that's all.

There is nothing so great about your Right or Wrong Comments!
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