AskGuru Q&A Community

Get answers from PropertyGuru experts in 24 hours

Asked by
Can I sue the prospective tenant for stopped cheque?

A prospective tenant signed a LOI and gave a 'good faith deposit' cheque.
Later they stopped the cheque and backed out.

The LOI says that the tenant forfeits the 'good faith deposit' if they back out.
The LOI also says 'subject to contract'.
We never reached tenancy agreement stage.

Can I sue the tenant for the 'good faith deposit'?
0 •
2628 views
Upvote Upvoted
Want this question answered?
Get faster responses from our experts by upvoting.
Be the first to upvote this question.

2 Answers

Joanne Kam
Replied
The Letter of Intent is Subject to Contract (which refers to the Tenancy Agreement), and is only valid if there is valid money involved. In this case, although the good faith deposit cheque has been given with the LOI, the LOI is not valid as there is no $ that comes with the cheque since the cheque has been stopped. As there is no valid money, there is no valid contract, and hence there is no basis for you to sue the "prospective tenant". You may contact me if you need further clarification or assistance. Joanne - Global (Group Director) hp: 8138-6666  Read More
2
Upvote Upvoted
Catherine PANG
Replied
i suggest that you focus on getting a better tenant...and move on ...
www.catherinepang.com Read More
0
Upvote Upvoted

Still looking for answers?

Get answers from PropertyGuru experts in 24 hours

Ask Your Question
Previously Asked Questions