Tax & Legal News Flash | Issue 36
Recently, the Committee on Contracts of the Consumer Protection Board has issued the Notification of the Committee on Contracts Re: Prescribing Residential Property Lease Business as Contract-Controlled Business (“Notification”). The Notification will become effective on 1 May 2018.
This Notification applies to the business of leasing premises to individual tenants (including sub-tenant) for residential purpose of at least five units or more, regardless of whether or not such units are located within the same building.
Under the Notification, such leasing premises can include rooms, houses, condominium units, apartments or other kinds of residence, but exclude dormitories under the Dormitory Act and hotels under the Hotel Act.
|Inspection of leased premises||
|Expiration and termination of lease||
The Notification specifies several requirements and restrictions on terms and conditions of the residential lease contracts. In addition, non-compliance of the Notification could result in the business operators being liable under the Consumer Protection Act which consists of criminal penalties.
Accordingly, the lease business operators should revisit the residential lease contracts with their individual tenants to ensure the compliance with the Notification.
We welcome any opportunity to discuss the relevance of this matter upon request.
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