Landlord and Tenant (Consolidation) Ordinance

(1)
This section applies if a landlord of a first term tenancy for a subdivided
                unit fails to serve a second term offer on the tenant under
section
                    120AAS
.
(2)
The landlord is taken to have made a second term offer to the tenant on the
                expiry of the offer period, and the tenant is
taken—
(a)
to have accepted the second term offer; and
(b)
to be granted the second term tenancy on the expiry of the first term
                    tenancy.
(3)
For the purposes of subsection (1), a landlord fails to serve a second term
                offer on the tenant
if—
(a)
the offer is not served on the tenant within the offer period;
(b)
the offer is not made in Form AR1;
(c)
the landlord has not signed the Form AR1 sent to the tenant;
(d)
the proposed amount of rent for the second term tenancy is not stated in
                    the offer;
(e)
the proposed amount of rent for the second term tenancy stated in the offer
                    is higher than the maximum amount of rent for the second term tenancy permitted
                    under
section 120AAZE
; or
(f)
any terms or conditions other than those contained in the first term
                    tenancy are included in the offer.
(4)
Subject to subsection (5), the renewed rent for the second term tenancy is to
                be the amount of rent last payable by the tenant for the first term
                tenancy.
(5)
If the control percentage ascertained in accordance with
section
                    120AAZE
for the rent for the second term tenancy is a negative figure, the
                renewed rent for the second term tenancy is to be reduced by that
                percentage.
(6)
Despite subsection (2), if the tenant delivers vacant possession of the
                subdivided unit to the landlord on or before the expiry of the first term
tenancy—
(a)
the second term offer taken to be made to the tenant is taken to be
                    rejected by the tenant; and
(b)
no second term tenancy is taken to be granted to the tenant.