Tenancy Agreement Part 3 TPC =E2=80=93 Practice= Q4
17/06/2018 Thomas Sim PEA2066
Q.

What if Tenancy Agreement is never sta= mped or lost? Tenancy Agreeme= nt - Part 3.

A.

So=E2=80=A6 tenancy agreement lost and= never stamped. In such case, the contract of renting is still in force as = long as payment of consideration is ongoing.

The contract becomes a monthly contrac= t - tenant becomes a monthly tenant. He pays his rental, he is creating a c= ontract renewed every month. When he pays his rental to the landlord, the l= andlord would take that as an implied offer, ie there is offer (he offer to= pay) and acceptance (landlord accepting the rental money), consideration (= rental paid) and certainty - for a month starting 1st and ends 30/31st. He = is a monthly tenant.

So, no need to stamp the agreement? We= ll, there is another advantage of stamping the agreement. It is for a tax p= urpose. You remember that stamping an agreement makes it legal to be admitt= ed to Court?

Paying tax on income will make it =E2= =80=9Clegitimate=E2=80=9D? Hence, stamping an agreement will make the renta= l income officially acceptable to your banker. For example, you are salarie= d at RM4,000 per month. Now, your property is rented out at RM1,000 per mon= th.