By Property Hunter
clock 03-02-2022
hit 2,092
Before You Rent in Malaysia, Understand the Frustration Clause

It might be thrilling to move into your new leased house. Did you realise, though, that there is such a thing as a frustration clause?


A frustration clause is a clause in a contract that states that in the case of unanticipated events beyond the landlord's or your control after you move into your new property, you will be compensated. Keep in mind that the frustration clause applies to instances involving natural calamities.



It's advisable to make sure this clause is included in your rental agreement before signing it.



This provision will assist you in obtaining your funds and will protect you from mistreatment by your landlord.



For example, a woman who had recently extended her lease had a horrible experience when her next-door neighbour, who had earlier become a nuisance, soon became dangerous.





Example of Frustration Clause



A woman who had recently extended her lease had a horrible experience when her next-door neighbour, who had earlier become a nuisance, soon became dangerous.



In a video she had posted on her social media, she shared her experience with a crazy neighbour. Her neighbour had been taking drugs, getting high and playing music to a point where it had caused discomfort to other residents.



The residents had come up with various solutions to resolve the situation. Soon, the neighbour had started to become violent by threatening her with death notes and similar actions. 



Eventually, she had called the police to report on the events that took place. The police had arrested the neighbour, who later was allegedly reported to have suffered from mental illness but stopped taking medication.





Photo Credit: @thehoneykhanum(TikTok)



The police had advised her to move out of the premises. However, upon discussing the matter with her landlord. The landlord had refused to return her deposit, claiming that she had broken her contract. Fortunately, she was well aware of the need to include a frustration clause in her lease. She then brought her case up to the magistrate court where the landlord was forced to return her money including deposits.



The frustration clause, on the other hand, does not cover everything. The frustration clause, for example, does not apply if a renter is unable to pay rent due to a large amount of debt.






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