Forum: Expedite legislation of code of conduct on fair tenancy practices
A code of conduct for the leasing of retail premises that lays out fair tenancy practices was introduced in March 2021. Since then, the initiative, which aims to ensure that retail tenants are given a fair deal in their lease agreements, has been pending legislation.
- by autobot
- March 10, 2023
- Source article
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A code of conduct for the leasing of retail premises that lays out fair tenancy practices was introduced in March 2021. Since then, the initiative, which aims to ensure that retail tenants are given a fair deal in their lease agreements, has been pending legislation. Recently, I accompanied a retailer to check out a shophouse which was put up for sale. The floor area was advertised as 1,400 sq ft. However, when we viewed it, the floor area was only about 800 sq ft. Upon clarification, we were told that a loft could be built, which would increase the floor area to 1,400 sq ft. We did our due diligence and visited all the shops in the row. None had such a loft, as the headspace did not support such a structure, except for perhaps an overhead storage space. We checked with the other tenants, and they shared the same observations with us. One of them said a recent buyer had been misled, and overpaid for a unit. As a result, the new tenant ended up with a higher rental based on 1,400 sq ft instead of 800 sq ft. We were shocked that the property agents seemed to be using false information to advertise units for sale and lease. Can a landlord who was misled into the purchase, or a tenant who is paying rent that is based on potential floor area instead of actual floor area, seek legal recourse?