NSW Tenant not signing lease after putting holding deposit and bond

Discussion in 'Property Management' started by starter, 13th Sep, 2020.

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  1. Hayley Cannon

    Hayley Cannon Well-Known Member

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    Yes you are right! I missed that the lease hasn't been signed!

    Definitely no break lease fees
     
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  2. XBenX

    XBenX Well-Known Member

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    Just had a similar situation occur.

    (Property currently vacant in NSW)

    Application approved/accepted
    Tenant paid holding deposit
    Tenant paid bond
    Property removed online, no further inspections
    Tenant still to sign lease
    Tenant changes mind prior to move in/commencement

    My only thought is to accept future applications with the condition that they sign and return the lease within 24hrs.

    Any other ideas for process improvements?
     
  3. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    Get bond and lease signed asap, and leave the property online till both are completed.
     
  4. thatbum

    thatbum Well-Known Member

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    Was the lease paperwork handed over to sign at the time of "acceptance"?
     
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  5. Hayley Cannon

    Hayley Cannon Well-Known Member

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    In NSW legislation states:

    29 Condition reports
    (1) A condition report relating to the condition of residential premises on a day specified in the report must be completed by or on behalf of a landlord before or when the residential tenancy agreement is given to the tenant for signing.
    (2) The landlord or landlord’s agent must, before or at the time the tenant signs the residential tenancy agreement, give to the tenant 2 copies, or one electronic copy, of the completed condition report.
    Maximum penalty—20 penalty units.

    This means that a condition report should be given to the tenant at the time of the lease signing however this must also be completed as close to the lease start as possible meaning it is not always viable to do both as soon as the tenant is accepted. I am unsure if the condition report when the lease actually starts would become invalid in this instance if you did not provide at the lease signing as I do no sign leases without providing the condition report.

    Has anyone else had issues with this?
     
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  6. thatbum

    thatbum Well-Known Member

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    But it can be given before or at the time. So I'm not sure it's really the case you need to have it done "as close to the lease start as possible".

    I wouldn't have thought it really matters when its done as long as the condition remains the same.
     
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  7. Hayley Cannon

    Hayley Cannon Well-Known Member

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    I couldn't possibly complete and provide a thorough ingoing report including photos to a new tenant if say it is still occupied by the exiting tenant. Best practice including for worst case scenario eg a bond dispute would be to have the ingoing completed within the week before the new tenancy start date
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    This might assist
    upload_2021-9-6_23-58-43.png
     
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  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    and

    upload_2021-9-6_23-59-22.png
     
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  10. htopg

    htopg Well-Known Member

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    Where is this rule stated?

    In the following article
    Should you request a holding deposit?
    for NSW, it states that
    The tenant will forfeit the deposit if they do not proceed with the lease.

    Does it mean that the tenant can get the holding deposit back if they do not want to proceed with the lease?
     
  11. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    NSW Fair Trading indicate the statutory max holding deposit is one weeks rent. However, Fair Trading also explicitly refer to what occurs when a lease does not progress and it describes THREE alternatives depending upon who did or didnt sign the lease. . See heading "Holding Deposits"

    Starting a tenancy.

    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.
     
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