Cancelling contract before moving in

My sister and i were planning on renting and moving into a apartment this saturday 19/06 and sent the holding deposit (1week of rent) on saturday 11/06.

Due to unfortunate circumstances it seems like we won’t be able to move and will have to cancel moving in.

Are there any legal ramifications we may face?
Are we legally obligated to move in and pay?
Is it possible to contact them and tell them we’d like to cancel and explain our circumstances?

The place is a much wanted popular place that we know many other applicants have applied for if that helps?

Any advice or help would be appreciated thank you

 

This is a break lease situation.

Im not really familiar with NSW, maybe @Mel Morgan can help?

Here in SA it'd be 2.2 x weekly rent, plus rent payable until a new tenant commences but its different in all states.

 

Here is the break lease situation in NSW:

NSW Residential Tenancies Regulation 2019:

Schedule 1 - Standard Form Agreement

BREAK FEE FOR FIXED TERM OF NOT MORE THAN 3 YEARS

51. The tenant agrees that, if the tenant ends the residential tenancy agreement before the end of the fixed term of the agreement, the tenant must pay a break fee of the following amount if the fixed term is not more than 3 years—
51.1 4 weeks rent if less than 25% of the fixed term has expired,
51.2 3 weeks rent if 25% or more but less than 50% of the fixed term has expired,
51.3 2 weeks rent if 50% or more but less than 75% of the fixed term has expired,
51.4 1 week’s rent if 75% or more of the fixed term has expired.

 

I've been researching a bit and Fair trading NSW says we should receive a copy of tenant information statement, copy of proposed tenancy agreement, condition report, copy of by-laws and we should receive the signed tenancy agreement at the time of agreement.
We have received none of these things and have had no contact with landlord only the real estate agents will this affect anything?

 

Ask that of Fair Trading, it's mandatory for the agent or owner to provide these documents.

If you haven't yet signed the lease, then you will only lose the holding deposit.

I always include them with the lease as attachments and get the tenant to sign them and a copy of the keys provided - no disputing the documents having been issued.


Talking to the agent is the same as the owner, you don't need to contact or be in contact with the owner.

 

Have you signed the lease or just paid the holding deposit. My understanding if you've signed the lease then you need to abide by the break lease rules because you have legally agreed to the contract.

 

I haven't actually signed anything but my sister the co-tenant has signed something. We're not sure if it was the contract or the application form that she signed so she's contacting the real estate agents to ask this of them.

 

you may not have entered into an agreement

 

have you signed a lease yet or simply paid a 1 week holding deposit?

If you haven't signed yet you probably forfeit the holding deposit only.

Starting a tenancy.

"A landlord or agent may ask a tenant to pay a holding deposit (also known as a holding fee) if they have approved the tenant’s application and are offering the tenant the property. Holding deposits cannot be more than one week’s rent.

If a tenant has paid a holding fee, the landlord or agent cannot sign a tenancy agreement with any other person within seven days of receiving the payment (or longer if agreed to). The landlord or agent must also provide a receipt.

If a tenant signs the agreement, the holding deposit must be paid towards rent.

If the landlord does not sign the agreement, the holding deposit must be given back to the tenant.

If the tenant does not sign the agreement, the landlord or agent may keep the holding deposit unless the tenant did not sign the agreement because the landlord or agent did not inform them of any ‘material facts’ or made a false or misleading representation."

 

It sounds like you've only paid the holding deposit - in this case the 1 week's rent is all that you would lose. Advise the agent asap so that they may still be able to go with one of the other applications.