Document background
The Memorandum of Understanding Between Landlord And Tenant is a crucial preliminary document used in Hong Kong's real estate market to establish the framework for a potential tenancy arrangement. It is typically used when parties have reached initial agreement on key terms but require a formal document to outline these terms before proceeding to a full tenancy agreement. The MOU includes essential information such as property details, proposed rental terms, conditions precedent, and timeline, while maintaining its generally non-binding nature (except for specific provisions). This document is particularly valuable in complex commercial tenancies or high-value residential leases where detailed negotiation is required. It operates within Hong Kong's legal framework, particularly under the Landlord and Tenant (Consolidation) Ordinance, and serves as a roadmap for the subsequent formal tenancy agreement. The MOU helps prevent misunderstandings and provides a clear structure for moving negotiations forward while protecting both parties' interests during the pre-contractual phase.
