1. What is the potential risk to the landlord and the tenant in leasing and renting a property without a written agreement?

1. What is the potential risk to the landlord and the tenant in leasing and renting a property without a written agreement?

The most obvious risk has to be dispute on the precise terms of the tenancy agreement, or sometimes, even whether a landlord and tenant relationship has in fact existed.  These uncertainties could have been avoided if the parties have signed a written tenancy agreement setting out clearly the terms of the tenancy.  Indeed signing a printed tenancy agreement conveniently available in local stationery shops, though far from being adequate in many aspects, may still more desirable than relying on a purely oral tenancy agreement.

When dispute arises, by the effect of section 3(1) of the Conveyancing and Property Ordinance (Cap. 219), the parties may not be able to bring a legal action to enforce the terms of an oral tenancy agreement unless the case falls under one of the exceptions to the rule that a lease of a landed property shall be in writing.