With landlords now firmly in the driver’s seat, what can tenants do when confronted with tricky situations such as the landlord declaring that he wants to sell the property or move into it himself?
Firstly, the landlord can increase rents by a minimum of 5% to a maximum of 20%, only if the existing rent is below the average market rate stated in the rent index.
Secondly, a notice of termination of a lease by the landlord if he wishes to sell the property or move into it himself must be given one year in advance. So, while a landlord may sell the property during the life of a tenancy agreement, as a tenant, you have the right to occupy the property for the tenure of the agreement.
Thirdly, if a tenanted property is to be sold, the landlord/seller should provide a copy of the current tenancy agreement to the sales listing agent and ensure that a “Special Condition” clause is inserted in the contract. This clause should detail the requirement for having the seller and the tenant provide a “Property Condition Report” specifying any problems and a transfer of the tenant’s security deposit from the old landlord to the new landlord.
The law dictates that the tenant should be factored in this process and the right of tenancy respected, so as a renter, you can demand to see the insertion of this clause in the contract or view a copy of the sales and purchase agreement if your landlord tells you that he is selling the property. However, when the new owner is handed over the property, he/she can ask you, the renter, to move once the tenure of the contract is over.
Fourthly, if your landlord says that he wishes to move in to the property, then he will need to prove that he does not own an alternative property for his own use. Further, if he moves in, then the property cannot be re-let for a period of two years.
Moreover, if you wish to confirm that the new property is indeed sold or occupied by the landlord, then you can go to RERA and ask to see a copy of the sales or leasing contract and press for legal action if the property has in fact not been sold. The same applies if you discover that the landlord has not moved in and has rented out the property for a price above the set market rate.
