AVOID THREE EXPENSIVE ERRORS IN PROPERTY INVESTMENT

Since it proved to be a HOT HOT thing, I’m answering more questions this month. As usual again, the questions are presented the way they came in, broken English, grammar errors and all. Enjoy!

QUESTION:
Dear Azizi,
I’m currently using the sample Tenancy Agreement from your book. My tenant and I signed the Tenancy Agreement. But I did not get it to be stamped. (Mine is a low cost flat and the tenant was reluctant to pay for the stamping cost.)
I wonder if it will be of any good in the court of law should I have any problem with my Tenant?
ANSWER:
Yes and no!
Firstly, an agreement does NOT have to be stamped to make it legal. In fact, stamping it does not make it more or less legal. An agreement that is signed by both parties are legal and binding.
Why do people stamp agreements then?
The answer is because only an agreement that has been stamped can be admitted to court. No stamping, no admission.
In your case, if you need to go to court later on, all you need to do is to have the agreement stamped at that time. Of course, you will be charged a higher fee for the late stamping.
The sad reality is that a tenant that cannot afford to pay the stamping fee will very likely be unable to afford the rent payment as well!

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