Sale of Protected Tenancy Rights
Under the Law, if the rights holder wishes to sell the rights in the property, the landlord has priority to purchase the protected tenancy right before any other person.
This raises the question of whether there is demand for such rights. The answer is yes. For example, some people wish to live in an apartment in a central location in the city by paying key money, which is significantly lower than the price of an apartment that is not subject to key money.
The right may also be sold to a family member who wishes to live in the property under protected-tenancy conditions.
The Tenant Protection Law contains detailed provisions governing the sale process. First, affidavits from the seller (the outgoing tenant) and the buyer (the incoming tenant) must be sent to the property owner. As noted, the property owner has priority to purchase the right. However, if the owner does not wish to purchase it and is also unwilling to approve the sale, it may be necessary to apply to court. The appropriate forum is the Rent Tribunal.
Whether the outgoing tenant’s right is transferred to another tenant or possession of the property returns to the owner, the tenant is entitled to receive the tenant’s share of the key money.
A professional and experienced attorney specializing in protected tenancy can assist you throughout the process and, where necessary, represent you before the appropriate legal authorities.
Eviction of a Protected Tenant
As noted, a protected tenant is protected against eviction from the property. Only in limited circumstances can a protected tenant be evicted from an apartment or business premises.
The grounds for eviction are defined by law. When one of these grounds applies, eviction may be sought. The principal grounds include:
* The tenant has stopped paying the rent required under the tenancy.
* The tenant intentionally caused damage to the rented property.
* The tenant used the property for an unlawful purpose.
* The tenant failed to comply with a tenancy condition whose breach gives the landlord the right to seek eviction.
* The tenant made changes to the property contrary to the tenancy agreement.
* The tenant abandoned the property.
Sometimes a landlord needs the apartment and seeks to evict the tenant not on one of the grounds above, but in order to rebuild the property, for example as part of a TAMA urban-renewal project. Under the Law, eviction may be possible provided that the tenant is given notice and alternative accommodation is found for the tenant.
A property owner wishing to file an eviction claim will generally apply to the Rent Tribunal. Each Magistrates’ Court has jurisdiction to hear Rent Tribunal matters.
The Rent Tribunal does not grant an eviction claim lightly. It examines the circumstances and balances the property owner’s needs against the expected consequences for the tenant if evicted. Even if the property owner proves a ground for eviction, the Tribunal may determine, depending on the circumstances, that eviction would cause the protected tenant substantial harm and dismiss the claim. Alternatively, the Tribunal may accept the claim and award compensation to the protected tenant.