Malaysia Real Estate Law - Landlord/Tenant

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REAL ESTATE LAW - Landlord / Tenant

Related Topics : Agricultural Law . Buy / Sell a House . Commercial Real Estate . Condemnation . Landlord / Tenant . Mortgage Matters . Zoning

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WHAT IS THE EFFECTIVE MARKET RATE FROM 1ST JANUARY 2000 UNDER THE REPEAL ACT ?

However, if the tenant wishes to remain in occupation of the premises after the expiry of such transitional period, then he is to pay a rental at the market value. The amount of rental payable by the tenant should be clearly stated in the letter. The tenant will have to decide whether to accept such a fresh tenancy paying a rental at the market rate, which will certainly be much higher than the fair rent.

In case the landlord intends to recover vacant possession of the premises soon after the expiry of the transitional period, he may notify the tenant in the same letter that a fresh tenancy can be entered into for a period of not more than three months only, ending on 31 March 1997, and as the landlord wishes to exercise his right to vacant possession, the tenant is to vacate the premises thereafter.

This may serve as to satisfy the legal requirement to provide for a period of three months for the tenant to vacate the premises.

WILL THREE MONTHS' NOTICE TO QUIT BECOME A PERMANENT FEATURE ?

To answer this question, one may have to refer to s. 11 of the Repeal Act.

Section 11 of the Repeal Act provides:

(a) shall provide for a period of three months for the tenant to vacate the premises; ...

Section 11 refers to the right of the landlord to vacant possession of the premises after the expiry of the transitional period and after the cessation of the deemed tenancy, and also to his entitlement to collect whatever rental remaining unpaid as at 31 December 1999.

If the landlord wishes to exercise such right to vacant possession after the expiry of the transitional period, he must serve a notice on the tenant to provide for a period of three months to vacate the premises.

Renewed Tenancies Should Not Be Affected

However, it will not be a permanent feature of all subsequent renewed tenancies by reason of the wording of s. 11 of the Repeal Act.

In other words, upon the expiry of the new tenancy entered into immediately upon the expiry of the transitional period, the provision relating to the three months’ notice to quit will no longer apply to any subsequent tenancy.

If a renewed tenancy is entered into between the parties concerned, it will not be subject to the special requirement of having to serve three months’ notice on the tenant to vacate the premises.

Since it is a renewed tenancy and if the landlord intends to terminate it, he is not exercising his right to vacant possession upon the expiry of the transitional period and upon cessation of the deemed tenancy under s. 11.

It is only when the transitional period expires and the deemed tenancy ceases to be in force, and at the same time the landlord wishes to exercise his right to vacant possession, that s. 11(2) (relating to the requirement of three months’ notice to vacate the premises) has to be complied with s. 11(2) will have no application to renewed tenancies to be entered into in the year 2000.

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Last Updated : Monday, 23 July 2001 - 04:25:49 PM EDT©1999-2000
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