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f) Tenancy without a written tenancy agreement

A lease for a term not exceeding 3 years at market rent which takes effect in possession is an exception to the general rule under section 3(1) of the Conveyancing and Property Ordinance (Cap. 219) that a lease of landed property shall be in writing in order to be enforceable by legal action.

 

Even for a lease for over 3 years, it may not be problematic if both the landlord and the tenant are willing to honour their obligations to perform the tenancy as the oral tenancy agreement is legally binding upon the parties.

 

But if dispute about the tenancy arises, no legal action can be brought on an oral tenancy agreement unless:-

(a) there is some memorandum or note in writing evidencing the tenancy agreement and signed by the parties; or

(b) the parties can rely on the doctrine of part performance by demonstrating that they have performed sufficient acts pursuant to the oral agreement between them.