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20180528 Sequence of event to a tenancy agreement

20180528 (Mon)

The sequence of events to a rental agreement.

The landlord advertise to the public for potential tenants. This is invitation to treat.

Prospect tenants are selected. The agent receives inquiries and negotiate for the rental rates and other conditions (deposits and bills of utilities). The prospective tenant makes an offer having knowledgeable information about the premises and the terms and conditions.

This offer with booking fee goes to the agent (and kept by agent) while landlord is being immediately informed of the offer. If it is a straight forward offer, the landlord will either accept or decline. Then, the tenant is to start preparing for the remaining monies. If it is declined by the landlord, deposit money (booking fee) should be returned immediately to the prospective tenant.

In the case of acceptance, the agent holds the booking fee in the client’s account of the firm, and proceed to ensure all the terms negotiated are fulfilled. Some of these terms are like installation of air-conditioning in the master room, etc. Thereafter, tenant shall pay up all the security deposits and utility deposits to the agent. With the agreement done (usually in a lawyer’s office if it is a commercial property), tenant signs the tenancy agreement and the agreement with all the monies be presented to the landlord to have his signature.

Only after all that had been done, the landlord allows vacant possession of the property.

The contract shall be stamped within 30 days (if within Malaysia) and within 30 days when it is brought into Malaysia (if outside Malaysia).

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