Diplomatic Clause in Rental Agreements in Hong Kong: A Guide
Renting a property in Hong Kong can be a daunting task. With the skyrocketing prices of real estate, it is essential to have a thorough knowledge of the various clauses in your rental agreement. One such clause that is commonly included in rental agreements in Hong Kong is the diplomatic clause.
What is a Diplomatic Clause?
A diplomatic clause is a clause in a rental agreement that allows the tenant to terminate the lease before the agreed-upon end date, without incurring a penalty. This clause is typically included in rental agreements for the benefit of tenants who are employed in diplomatic missions or international organizations. It allows them to terminate the lease early if they are transferred to another location.
The diplomatic clause is beneficial not only to tenants but also to landlords. It ensures that the property is not left vacant for an extended period, and the landlord does not suffer any financial losses. As per Hong Kong law, the diplomatic clause should be included in the rental agreement if the tenant is employed in a diplomatic mission or international organization.
How Does the Diplomatic Clause Work?
If a tenant wants to exercise the diplomatic clause, they must provide the landlord with a notice of termination. The notice period is typically two to three months, but this can vary depending on the terms of the rental agreement. The tenant must provide proof that they have been transferred to another location by their employer. Once the landlord receives the notice, they must agree to terminate the lease without charging any penalty.
It is essential to note that the diplomatic clause does not apply to all tenants. It only applies to tenants who are employed in diplomatic missions or international organizations. If a tenant is not covered by the diplomatic clause, they will be liable to pay the penalty for terminating the lease early.
Conclusion
The diplomatic clause is a crucial clause to consider when renting a property in Hong Kong, especially for those who work in diplomatic missions or international organizations. It provides an essential safeguard for tenants who may be transferred to another location. Landlords also benefit from this clause as it ensures that the property is not left vacant for an extended period. If you are considering renting a property in Hong Kong and are unsure about the diplomatic clause, it is recommended that you seek legal advice before signing the rental agreement.
