If one day you found out that your landlord is NOT the actual owner of the house, what could happen to you? Part 2.
The veil principle – or corporate veil principle, says you do not need to look further when you contract with a party authorized to enter into a contract. That means when an authorized agent deals with you, even as if he is NOT the landlord himself, he is within his authority to contract. The tenancy contract is solid in law. You need not know who is the real landlord.
Many a time, this is the case for property which owners are never around. We have investors all over, and this condominium in Kuala Lumpur might be owned by someone in Kuching. The appointed agent in KL can get the tenant to enter into a tenancy agreement without seeing the landlord!
However, if the name of the landlord is in the tenancy agreement is not the actual owner, how? This happens a lot when the house is owned by the son/wife, but father/husband is the ostensible owner. Yet, rental is paid into mother’s bank account.
The address of the property and the legitimacy of the witness (usually the agent) are the other clues which supports the contract! So, the real landlord cannot come forward and say he did not rent out his property to you!
And, usually there is a clause inside the tenancy agreement which clearly states that in the event that the property is sold, the new owner has to honour the tenancy contract and the tenant should not be disturbed of the peaceful use of the property.