The Myanmar Times
Thursday, 21 August 2014
The Myanmar Times
The Myanmar Times

Industry welcomes proposed law amendment

 A client signs an agreement at Sai Khung Noung real estate agency in Tarmwe township last week. Boothee / The Myanmar TimesA client signs an agreement at Sai Khung Noung real estate agency in Tarmwe township last week. Boothee / The Myanmar Times

Proposed legislation aimed at curbing fraudulent property leases and ensuring owners are paid compensation for damage caused by tenants has been praised by the real estate sector.

The proposed Urban Home Rental Act is being drafted in parliament and aims to strengthen the ability of property owners to enforce the provisions of rental agreements.

Existing property rental legislation was passed in the 1960s and is widely considered ineffective because business and socioeconomic conditions have changed.

U Aung Naing Win, a property lawyer at Sai Khung Noung real estate and law firm in Tarmwe township, said the old law generally favours tenants.

“There have been prominent court cases allowing tenants to permanently remain in a property if the lease expired more than 12 years earlier,” he said.

Ko Soe Wunna, the general manager of Shining Star Real Estate Agency in Ahlone township, said: “I welcome the proposed law. As I understand, it will update the provisions of the 1960s law and the changes will be widely publicised.

“For renters and owners, contractual weaknesses resulting from false information being included is too common.”

Other serious problems include leases not being submitted to the Government Registration Office in Yankin township and the terms of verbal contracts not being enforced, he said.