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Forfeiture and Rent Recovery Guide

This document discusses various legal issues relating to termination of leases and recovery of unpaid rent in Hong Kong law. It notes that relief from forfeiture can be claimed by tenants even after landlords have commenced legal proceedings or taken possession of the property. For non-payment of rent specifically, there is no relief under section 58 of the Conveyancing and Property Ordinance, except for subtenants, but tenants can seek statutory or equitable relief. It also outlines different methods landlords can use to recover unpaid rent, such as bringing a personal action against the tenant, distraint of the tenant's goods to cover arrears of rent only, or deducting money from a rental deposit.

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22 views1 page

Forfeiture and Rent Recovery Guide

This document discusses various legal issues relating to termination of leases and recovery of unpaid rent in Hong Kong law. It notes that relief from forfeiture can be claimed by tenants even after landlords have commenced legal proceedings or taken possession of the property. For non-payment of rent specifically, there is no relief under section 58 of the Conveyancing and Property Ordinance, except for subtenants, but tenants can seek statutory or equitable relief. It also outlines different methods landlords can use to recover unpaid rent, such as bringing a personal action against the tenant, distraint of the tenant's goods to cover arrears of rent only, or deducting money from a rental deposit.

Uploaded by

David
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as ODT, PDF, TXT or read online on Scribd
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● u Date of termination = the date on which proceedings are initiated or from the date notice

of forfeiture is given if earlier : Billson v Residential Apartments Ltds; Wong Wan Leung v
Secretary for Transport [2001]
●
● l Relief:
● n Still, the tenant can claim relief against forfeiture. This right cannot be exercised until
the landlord commences proceedings but the right can be exercised even after the landlord
has taken possession.[Billson v Residential Apartments (1992)]The relief revives the lease.[
Power Dragon Ltd v Windsor Sauna Ltd (2004)]
●
● *NON PAYMENT OF RENT
● n NO s.58 CPO relief
● n In s.58(10) CPO, except for subtenants (s.58(4)CPO)
● n However, tenant has Statutory Relief : HCO s.21F, DCO s.69,69B and inherent equity
relief still present for forfeiture
●
● *OTHER BREACHES
● n s.58 CPO relief
● n Exceptions : s.58(8)-(10) CPO
● u because when s.58 CPO applies, it cannot contract out s.58 CPO relief
● n s.58(2)-(3) CPO : restrictions on and relief against forfeiture of leases and under leases

●
● Recovery of Rent
● l By action for non-payment- personal action against him- but only if he has money and
property (can place a charge over it and recover)
●
● l By distress/Distraint for rent:
● n clause 4(f) of TA – “For the purpose of Part III of the Landlord and Tenant
(Consolidation) Ordinance (Chapter 7) and of this Agreement, the rent payable in respect of
the Premises shall be and be deemed to be in arrear if not paid in advance at the times and
in manner herein provided for payment thereof.”
● n Seizing, detaining and selling off the tenant’s goods in order to cover payment of the rent
outstanding (but not other charges)- have to ensure there are enough goods there (if
residential property, and he doesn’t have money to paid rent, the things there may be on
hire-purchase as well)
● n ONLY for arrears of rent***! NOT for other breaches
● n Can only seize the GOODS (but cannot take the money)
● n Landlord may detain up to 12 months rental
● n Regulated by Part III of LTCO
●
● l By deduction from the deposit- forfeit the deposit (first thing to do)- there is only 2

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