AskGuru Q&A Community

Hi, check with your law firm.

Rgards
Aaron
 9730 8455  Read More

Hi

Resale units as sold based on an as-is basis and under the principle of "caveat emptor". That means the buyer assumes the risk of the purchase and should ask the necessary questions.

For sales with tenancy, it is recommended that the prospective buyer views the tenancy agreement before committing to ensure that the agreement has no adverse clauses, such as a long option to renew and in this case, a Diplomatic Clause which came into effect . This is an important step as the buyer will have to honour the terms of the agreement when the property is eventually transferred to him.

If the offer was conditional on the tenancy being in force for the term of the lease, then this condition should be clearly reflected in the Offer to Purchase and subsequently the Option to Purchase to reflect the seller's acceptance of the condition. Remedies or other action, such as a reduction in price, in the event the condition is not met, must be inserted. In the absence of this conditional clause, I am afraid you will little recourse.

Do consult your lawyer to confirm this to be sure. My advice is purely from an academic perspective.

The Seller has only the obligation to deliver the property in almost the same condition as when you viewed it. The tenant will usually make good any defects when he leaves. So you can request for the Seller to ensure this is done.

Hope this helps.

Francis Xavier
Sr. Division Director
ERA Realty Network
 96422792  Read More