What if Tenancy Agreement is never stamped or lost? Tenancy Agreement - Part 3.
So… tenancy agreement lost and never stamped. In such case, the contract of renting is still in force as long as payment of consideration is ongoing.
The contract becomes a monthly contract - tenant becomes a monthly tenant. He pays his rental, he is creating a contract renewed every month. When he pays his rental to the landlord, the landlord would take that as an implied offer, ie there is offer (he offer to pay) and acceptance (landlord accepting the rental money), consideration (rental paid) and certainty - for a month starting 1st and ends 30/31st. He is a monthly tenant.
So, no need to stamp the agreement? Well, there is another advantage of stamping the agreement. It is for a tax purpose. You remember that stamping an agreement makes it legal to be admitted to Court?
Paying tax on income will make it “legitimate”? Hence, stamping an agreement will make the rental income officially acceptable to your banker. For example, you are salaried at RM4,000 per month. Now, your property is rented out at RM1,000 per month.
If you stamp your tenancy agreement, you total income is RM5,000 when you apply for loan. The bank will get your salaried income (payslip) and stamped tenancy agreement (stamping page and rental page - usually the schedule) to consider your application for loan/credit facilities.