Village House Tenancy Agreement (Hong Kong)

A Village House Tenancy Agreement in Hong Kong sets out the rental terms, deposit, duration, and obligations agreed between landlord and tenant.

Village houses fall under the Landlord and Tenant (Consolidation) Ordinance (Cap. 7), which governs all residential tenancies in Hong Kong. The Stamp Duty Ordinance (Cap. 117) requires every village house tenancy agreement to be stamped at the Inland Revenue Department within 30 days of execution. Section 41 of Cap. 7 provides the statutory framework for forfeiture of New Territories tenancies. However, the tenancy agreement for a village house must address several issues that do not arise in standard urban residential tenancies — most importantly, the land grant conditions under which the house was built, which may restrict or prohibit the landlord from letting the property without the prior consent of the Government through the District Lands Office of the Lands Department.

Structurally, village houses are typically three-storey standalone structures with a maximum roofed-over area of 700 square feet per floor, not exceeding 27 feet (approximately 8.23 metres) in height. Each floor is a separate living area, and landlords commonly let individual floors rather than the entire house. The absence of a Deed of Mutual Covenant (DMC) and incorporated owners' corporation means there is no collective framework for managing shared areas — any shared facilities (staircases, carparks, gardens) are governed entirely by the individual tenancy agreement.

The New Territories village house rental market has expanded considerably in recent years. Many tenants — particularly families and expatriates — are attracted by the combination of more living space, private gardens or rooftop areas, and lower rents compared to urban Hong Kong. Popular village house rental areas include Sai Kung, Tai Po, Yuen Long, Tuen Mun, and the outlying islands. However, the legal complexity of village house tenancies — particularly the land grant restrictions enforced by the District Lands Office, the Rating and Valuation Department (for government rates), and the Lands Tribunal (for tenancy disputes) — means tenants should conduct thorough due diligence before signing.

Forms Legal provides a free Hong Kong Village House Tenancy Agreement template, specifically designed to address the unique characteristics of New Territories village house tenancies. Available as PDF and Word download.

Village house tenancy agreements in Hong Kong must address the unique characteristics of New Territories land tenure. Small House Policy (ding rights) properties are subject to restrictions on alienation under the Small House Policy administered by the Lands Department. The Building Management Ordinance (Cap. 344) does not typically apply to standalone village houses. An indigenous villager who has exercised his ding right to build a village house may face restrictions on letting the property during the initial alienation restriction period specified in the Government grant. Prospective tenants and their solicitors should verify the status of the land grant conditions before entering into a village house tenancy, as a tenancy that violates the grant conditions may expose both landlord and tenant to regulatory consequences. The Hong Kong Land Registry (Cap. 128) maintains records of lot ownership and encumbrances that tenants should search before signing. The Lands Department enforces compliance with New Territories land grant conditions through its District Lands Offices.

A Hong Kong Village House Tenancy Agreement is the legally binding contract governing residential occupation of a ding uk or traditional rural house in the New Territories. Governed by the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) and the Stamp Duty Ordinance (Cap. 117), the agreement records the rent, term, deposit, permitted use, and special conditions applicable to New Territories village house tenancies. Government Rent (Assessment and Collection) Ordinance (Cap. 515) governs the government rent obligation assessed at 3% of rateable value. Forms Legal provides a free Village House Tenancy Agreement template for Hong Kong. Available as PDF and Word download.

A Village House Tenancy Agreement is needed whenever a landlord lets all or part of a New Territories village house to a residential tenant. The specialised nature of village house tenancies — particularly the land grant conditions — means a standard urban residential tenancy agreement is insufficient. Section 41 of Cap. 7 sets out forfeiture grounds applicable to New Territories tenancies, and Section 6 of the Stamp Duty Ordinance (Cap. 117) prescribes the rates at which the agreement must be stamped. Section 19 of Cap. 7 confirms the landlord's obligations regarding quiet enjoyment.

Verifying the right to let: Before executing a village house tenancy, the landlord must confirm that the land grant conditions permit letting. Many village houses are built under Government grants that include an alienation restriction — a prohibition on selling, transferring, or letting the property without prior Government consent during a restriction period (typically 5 years from issue of the Certificate of Compliance). Tenants should request to see the land grant conditions or the Certificate of Compliance before signing. Letting without required consent breaches the land grant conditions and may expose the landlord to forfeiture of the land grant.

New tenancy arrangements: Whenever a new tenant is to occupy a village house or a floor of a village house, a formal written tenancy agreement must be executed, signed by both parties, and stamped within 30 days under the Stamp Duty Ordinance (Cap. 117). An unstamped tenancy agreement is inadmissible as evidence in the Lands Tribunal.

Multi-floor village houses: Where a landlord lets different floors of a village house to different tenants, a separate tenancy agreement should be executed for each floor. Each agreement should clearly define the tenant's exclusive area, any shared areas (such as staircases, carparks, rooftop), and the respective maintenance obligations for each floor.

Renewal of existing village house tenancy: When an existing village house tenancy expires and both parties agree to renew, a new written renewal agreement must be executed and stamped — since the 2004 amendment to Cap. 7, there is no statutory right to renew for residential tenants in Hong Kong.

Tenancies with special arrangements: Village house tenancies often include arrangements not found in urban tenancies — such as exclusive use of a rooftop for a solar hot water system, use of a ground-floor garage, rights over a garden area, or obligations regarding septic tank maintenance. All such arrangements must be documented in the tenancy agreement to avoid disputes.

A Hong Kong Village House Tenancy Agreement must address both the standard requirements of a residential tenancy under Cap. 7 and the specific characteristics of New Territories village house properties. Forms Legal's template covers the following essential elements.

Parties: Full legal names and HKID numbers of the landlord and tenant. For corporate landlords or tenants, the Company Registration Number and registered address from the Companies Registry. Where the landlord is an indigenous villager who built the house under the Small House Policy, this should be noted.

Property description: Full postal address of the village house; lot number (New Territories Lot number); District Lands Office reference; which floor or floors are let; the approximate floor area; and specific outdoor areas included in the tenancy (garden, rooftop, carpark, storeroom).

Land grant compliance: Confirmation of the landlord's right to let — either that the land grant does not impose an alienation restriction on letting, or that the restriction period has expired (Certificate of Compliance issued), or that prior consent has been obtained from the District Lands Office. Reference the relevant land grant or building licence number.

Tenancy term: Start and end dates. One or two-year terms are most common for village house tenancies in Hong Kong.

Rent: Monthly rent in Hong Kong Dollars (HKD); the date on which rent is payable; the payment method; and consequences of late payment. No GST or VAT applies.

Security deposit: Typically two months' rent, held by the landlord and returnable at the end of the tenancy subject to deductions for unpaid rent and damage beyond fair wear and tear.

Government rates and government rent: Allocation between landlord and tenant. By standard practice, rates (assessed at 5% of rateable value by the Rating and Valuation Department) and government rent (assessed at 3% of rateable value under the Government Rent (Assessment and Collection) Ordinance, Cap. 515) are the landlord's responsibility, though the parties may agree otherwise.

Maintenance and repairs: In the absence of a DMC or management company, the tenancy agreement must fully address maintenance obligations. Typically, the landlord is responsible for structural repairs; the tenant is responsible for internal repairs, decoration, and maintenance of fixtures. Specific provisions for village house issues: pest control, maintenance of septic tank or drainage systems (where not connected to public sewerage), and clearing of drainage channels.

Utilities: Water and electricity meter readings at commencement and end of tenancy; the Water Supplies Department account transfer; and arrangements for liquified petroleum gas (LPG) supply if the village house is not connected to town gas.

Use of outdoor areas and shared facilities: Precise description of the tenant's rights over the garden, rooftop, carpark, and any shared staircases or common areas. For multi-floor village houses, the agreement should specify access rights and obligations relating to shared areas.

Stamp duty: Obligation to stamp within 30 days of signing under Cap. 117; the applicable stamp duty rate; and allocation between landlord and tenant.

Governing law: Laws of the Hong Kong Special Administrative Region, with tenancy disputes subject to the jurisdiction of the Lands Tribunal.

Compliance with village regulations: Some New Territories villages have village committees that maintain informal rules about parking, noise, and the use of communal areas. The tenancy agreement should note any applicable village rules that the tenant is expected to observe as a condition of peaceful enjoyment of the property.

Forms Legal provides a free Village House Tenancy Agreement template specifically designed for New Territories ding uk tenancies, addressing land grant compliance, rural property characteristics, and obligations under the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) and the Stamp Duty Ordinance (Cap. 117). Available as PDF and Word download. The forms-legal.com Village House Tenancy Agreement (Hong Kong) template covers the mandatory elements under Landlord and Tenant (Consolidation) Ordinance (Cap. 7).