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Leasing requirements, advice

Saturday, August 12, 2017

People who are leasing crown, native or Housing Authority leases either for residential, commercial, industrial or for any other purpose should obtain consent from relevant authorities if they intend to build a new structure or carry out extensions to the existing building, says realtor Titus Narayan.

According to Titus Narayan, who runs Titus Real Estate, those who failed to get consent could face a heavy penalty because it would be regarded as an illegal development or structure.

"Even if you are intending to rent your premises, you must first seek consent from the authorities concerned or face the consequences," he said.

"I strongly advise lessees when they acquire a lease from the lessors they should first read and understand the terms and conditions stipulated in the lease documents.

"If you do not abide by the terms and conditions of the lease then you are looking for trouble and more expenses are likely to incur if you try to sell your properties because consent will not be granted to transfer if the structure is deemed illegally constructed."

In this situation, Mr Narayan said, the lessees would have to run in circles to correct their mistakes before consent can be granted. Also do not forget to keep the lawn neat and tidy otherwise it could be regarded as a breach of lease conditions.

"Let me give you just one example. A few years ago, I sold a block of residential land (crown lease) and upon inspection by the Lands Department, the lessee was fined, I cannot give exact amount, for not cutting the grass. Please do not think you will have your own way to obtain consent to transfer or to rent your properties.

"Please take heed of this advice and do the right thing to avoid unnecessary running around and expenses.

"Please always remember that the lessees are not the owner for the real property. The lessees are paying a rental fee to the lessor for the right to use the real property. In other words, the lessees are tenants and not owners."

Titus Real Estate — Licence No. 0001

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