Tenancy Agreement Hong Kong Stamp Duty

In addition, a proof of rent must be stamped before it can be submitted to the land registry for registration. 10 stamp duty is $425 Example 6 [ 7,000 x 12 x $5 (for copy]). On February 1, 2010, a 2-copy lease was signed for a 7-year term beginning July 1, 2010, with a monthly rent of $12,000 for the first two years and $15,000 for the last two years. In addition, a proof of rent must be stamped before it can be submitted to the land registry for registration. You should inform your tenant if you decide to sell your rented property. If no new agreement is reached between your tenant and the new owner of the property, the terms of the existing lease will continue to apply. Don`t forget to clarify with the tenant and the new landlord the responsibility for the repayment of the deposit to the tenant. A rental document is usually executed in counter-parts, both transferred to the Stamp Office of the Inland Revenue Department within 30 days of the execution date. However, if a lease agreement includes an option to renew the existing lease, it must be registered, even if the lease term does not exceed 3 years. An extension option gives the tenant the right to continue to rent the property after the current term expires, i.e. to renew the existing tenancy agreement. Since this extension option is of legal interest to the land and violates the principles of termination and priority, the corresponding lease agreement should be registered. 4.25% of the consideration if the rent is also payable under the tenancy agreement.

Otherwise, no procedure shall meet the same obligation as for the sale of land. For more information on unstamped documents and insufficient consideration, click here. A tenancy agreement should define what you and your tenant have agreed as your respective rights and obligations. However, certain rights and obligations are implied in a lease agreement, unless there are provisions to the contrary in the lease. One of your obligations involves, for example, that your tenant can enjoy the property and the conditions of the property during the apartment. On the other hand, a document creating a lease contract of less than 3 years or less (i.e. a lease agreement) does not earn anything by registration. A fixed-term lease, established on or after July 9, 2004, expires at the end of its term. Landlords and tenants do not have to issue notices of termination. You or your tenant may also prematurely terminate the tenancy agreement by mutual agreement or in the event of a termination clause in accordance with the contract.

You can apply for a stamp, pay online and get a stamp certificate immediately. Stamp duty levied on a rental document and its equivalent depends on the rent to be paid or the annual or average annual rent.