1. If a tenancy agreement does not specify the end date of the tenancy, would it still be legally binding until any of the party requests to terminate? What would be the potential risk to tenants and landlords entering into such kind of tenancy agreement?

1. If a tenancy agreement does not specify the end date of the tenancy, would it still be legally binding until any of the party requests to terminate?  What would be the potential risk to tenants and landlords entering into such kind of tenancy agreement?

A tenancy at will may arise where the tenant occupies the land with the consent of the landlord and on the understanding that either party can terminate the tenancy immediately at any time by informing the other party.

A tenancy at will is for an indefinite duration and is a vulnerable form of tenancy.  It is purely a personal interest and will come to an end upon the death of either party.

The tenant has to leave within a reasonable time when a tenancy at will is terminated.

Perhaps more of a concern to the landlord, section 12(1) of the Limitation Ordinance (Cap. 347) provides that a tenancy at will is deemed to be brought to an end at the expiration of 1 year from its commencement.  This in effect limits the landlord’s right to recover unpaid rent for up to a maximum of 12 months.