Table of Contents
In Hong Kong, landlords may encounter situations where tenants fail to pay rent, violate the terms of the lease, or even become "rent bullies". To protect their own rights and interests, property owners can apply for a repossession order from the Lands Tribunal through legal channels to terminate the lease, take back the property and recover the outstanding rent. This article will discuss in detail the steps of the property repossession procedure, the time required, the possibility of tenant objection, as well as how to deal with leftover items and special circumstances (such as sudden repayment by the tenant).
1. Overview of the legal basis and procedures for owners to take back their properties
According to Hong Kong's Landlord and Tenant (Consolidation) Ordinance (Chapter 7), if the tenant has not paid the rent 15 days after the due date, the landlord has the right to apply to terminate the lease and take back the property. In addition, if the lease contains a "Forfeiture Clause", the landlord can initiate the repossession procedure when the tenant breaches the contract (such as failing to pay rent). However, landlords must follow legal procedures and cannot change locks or evict tenants without permission, otherwise they may violate the law.
The property repossession process is mainly divided into three stages:
- Submitting an application to the Lands Tribunal;
- Application for judgment;
- Execution of writ of possession.
The entire process can take as little as three months, but the exact time varies depending on the complexity of the case (such as whether the tenant objects). The following analyzes each step one by one.
2. Detailed explanation of the property collection procedure
1. Submit application to the Lands Tribunal
- Step Content:
- The landlord needs to prepare a stamped copy of the lease, proof of rent arrears (such as payment records or notices), etc.Lands TribunalSubmit a repossession application.
- After the application is submitted, the landlord must serve a copy of the application notice to the tenant. This includes:
- Mail the notice to the tenant’s address;
- Post a copy of the notice on the door of the unit where rent is owed for three consecutive days.
- After the service is completed, the landlord must go to the Land Tribunal within a few days to swear an oath to prove that the tenant has been properly notified.
- Time required: About 1 to 2 weeks, depending on the efficiency of document preparation and delivery.
- Precautions: If the tenant is not in the unit or refuses to receive the notice, the requirement of posting for three consecutive days can be used as proof of legal service.
2. Application for judgment
- Step Content:
- Tenants have seven days from receiving the Notice of Application to file an objection. If there is no objection, the owner can apply directly to the Lands Tribunal for a judgment, which will usually be granted within 2 to 3 days.
- If the tenant objects, the case will proceed to a hearing. It takes about 2 weeks to 1 month to arrange a hearing, depending on the court schedule and the complexity of the case.
- Time required:
- No objection: about 2 to 3 days;
- There is opposition: half a month to more than one month.
- Case Study: If the tenant only submits simple reasons for objection (such as "the landlord did not give sufficient notice") but does not appear in court, the court will most likely dismiss the objection and directly rule in favor of the landlord.
3. Execution of writ of possession
- Step Content:
- After obtaining the judgment, the owner needs to apply for a Writ of Possession, which will be executed by the Bailiff.
- The bailiff will arrange a visit to reclaim the unit and take inventory of the items on site.
- Time required: 1 to 2 months, depending on the Bailiff's schedule and the workload in the area.
- Precautions: When the bailiff executes the case, the owner has no right to enter the unit or move items on his own, and the entire process must be handled by court personnel.
Total time estimate
- Fastest case: If the tenant has no objection and the bailiff schedules the case smoothly, the whole process will take about 3 months.
- Delay: If the tenant objects several times or the court or bailiff is busy, it may be extended to 6 months or longer.
3. Time Issue for Recovering Arrears of Rent
Waiting period required by law
according to"Landlord and Tenant (Consolidation) Ordinance” Unless the lease provides otherwise, the landlord may initiate proceedings to confiscate the tenancy after the tenant has been in arrears for 15 days. This is a covenant implied by the statute and does not require additional proof. However, the actual recovery of rent arrears depends on the specific circumstances:
- If negotiated directly, the owner can set a grace period of 7 or 14 days;
- If you take legal action, you will have to apply to the Lands Tribunal starting from the 15th day.
Practical suggestions
The landlord should issue a written demand notice at the beginning of the rent arrears period and keep the evidence. If the tenant still has not paid, the repossession procedure can be initiated after the 15th day to avoid losses due to delays.
IV. Disposal of items left behind after the bailiff takes possession of the property
Inventory and Recording
BailiffOn the day of handover, all items in the unit will be counted one by one and recorded in the inventory form. This list does not distinguish between who owns the items (tenant or owner) and only reflects the condition of the site.
Item handling method
- Valuable items:
- The owner may apply to the Lands Tribunal for an Order for Sale.
- Once the application is approved, you will need to wait 7 working days before you can sell the items according to the list to offset the loss of rent arrears.
- Worthless items(such as old furniture and clothing):
- The owner needs to apply for an "Order for Disposal".
- You also need to wait 7 working days before you can legally dispose of it.
- Legal risks: If the landlord disposes of the property without a court order, the tenant can file a civil claim to hold the landlord responsible.
suggestion
The owner should keep the bailiff's list properly and strictly follow the court procedures to avoid legal disputes.
5. What to do if the tenant suddenly pays off the rent
Legal basis
Under section 21F of the High Court Ordinance (Cap. 4), a tenant who defaults on rent for the first time during the tenancy may apply for a "Relief for forfeiture of lease” (Relief from Forfeiture). If approved, the court will give the tenant a grace period to pay the outstanding rent and the landlord's legal fees. The details are as follows:
- Grace Period: Can be designated at the time of application hearing or after the possession order is issued.
- Effect: If the tenant pays all the money within the deadline, the lease will be "revive" and the original terms will be restored, and the landlord will not be able to continue to take back the property.
- limit: This relief is only available for the first rent arrears. If a tenant repeatedly fails to pay rent, the court will usually not approve it unless there is a good reason (such as financial hardship and proof).
Case scenario
Suppose the landlord has obtained a judgment but the bailiff has not yet taken possession of the property and the tenant suddenly pays off the outstanding debt and applies for relief. If the court approves, the repossession process will be terminated and the lease will remain in effect. Although this situation is unfavorable to the landlord, it is a legal mechanism to protect tenants.
Coping strategies
- Landlords can include strict clauses in leases (such as expressly removing the right of forbearance), but they must comply with legal regulations.
- If a tenant applies for relief, the landlord should prepare evidence (such as a record of multiple rent arrears) to refute his or her eligibility.
6. Common situations and solutions for tenants’ objection to repossession
Opposition case analysis
- No objection: When the tenant submits an objection but does not appear in court, the court often rules in favor of the landlord.
- False reasons: If the claim is that "the loan has been repaid" but there is no evidence, the objection will usually be dismissed.
- Many objections: As in the above case, the tenant appealed repeatedly but without any basis and only delayed the case.
Owners should
- Preserve evidence: Rental records, notice letters, communication records, etc. can be used as basis in court.
- Seek professional help: Institutions such as Centaline Surveyors can provide legal advice and agency services.
- Mental Preparation: Repeated objections may increase time costs, and owners need to respond patiently.
VII. Summary and Suggestions
Program advantages and challenges
- Advantages：Hong Kong law provides property owners with a clear path to take back their properties and protect their property rights.
- challenge: Tenant objections, property handling and special circumstances (such as relief) may prolong the process and increase costs.
Practical suggestions
- Prevention is the key: Make the terms clear when signing a lease and screen tenants with good credit.
- Act early: Issue warnings at the early stage of rent arrears and initiate legal proceedings promptly if necessary.
- Professional Support: Entrust a lawyer or property management team to handle complex cases.
The handling of rental disputes in Hong Kong requires balancing the rights and interests of both parties. Landlords should remain patient and strategic while acting in accordance with the law in order to effectively resolve the problem.
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