Transfer of Tenancy
A transfer of tenancy refers to the handing over of the remaining tenancy period, together with the possession, rights and liabilities arising from the tenancy, from you, the “Transferor” (seller or original tenants) to the “Transferee” (buyer or new tenants). In legal terms, this involves a novation of the existing tenancy agreement (“Tenancy Agreement”) from the Transferor to the Transferee.
Generally, transfer of tenancy may involve the following:
- An inclusion, withdrawal or change of sole-proprietor or partner(s) within firms (for sole-proprietorship or partnership); Conversion of sole-proprietorship to partnership and vice versa. This can involve:
- Immediate family members eg. parents, siblings
- External business partners
- Conversion of legal entities from partnership to private limited company, sole-proprietor to private limited company and vice versa
- Corporate re-organisation or restructuring of business which results in a transfer of business to a wholly-owned subsidiary, sister company, parent company or related company within the same group
- Transfer to joint venture or subsidiary company whereby the Transferor holds at least 51% shareholding in the joint venture company
- Taking over (buy over) of business as an on-going concern