Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

The object of this Bill is to amend the Residential Tenancies Act 1987:

(a) to require a mortgagee, once they become entitled to possession of rented
premises to the exclusion of the tenant, to give the tenant at least 30 days’
notice to vacate the premises before the mortgagee takes possession, and

(b) to provide that the former tenant who is given notice to vacate may withhold
or recoup any rent for the period in which they are holding over after
termination of the residential tenancy agreement.

The Bill also amends the Landlord and Tenant (Rental Bonds) Act 1977 to make it
clear that a mortgagee may authorise the Rental Bond Board to release the rental
bond to the former tenant once the mortgagee becomes entitled to possession of the
rented premises.

Outline of provisions

Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on the date of assent
to the proposed Act.

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Explanatory note page 2

Residential Tenancies Amendment (Mortgagee Repossessions) Bill 2009
Explanatory note
Schedule 1 Amendment of Residential Tenancies
Act 1987 No 26
A residential tenancy agreement terminates if a mortgagee in respect of the rented
premises becomes entitled to possession of the premises to the exclusion of the
tenant. Schedule 1 [1] provides that in these cases the mortgagee will be required to
give the former tenant who is holding over under the terminated agreement a notice
to vacate before the mortgagee can take possession. The notice must specify the date
(being not less than 30 days after the notice is given) by which the former tenant is
to vacate the premises. The former tenant will be able to withhold or recoup any rent
for the period in which the tenant is holding over after termination of the agreement.

Schedule 1 [2] makes it clear that the right to take possession of rented premises in
accordance with a court order is, in the case where the residential tenancy agreement
is terminated because a mortgagee has become entitled to possession of the property,
subject to the new requirement to give the former tenant at least 30 days’ notice to
vacate.

Schedule 1 [3] provides that former tenants may be served with notices to vacate in
the same way as other documents or notices are given to tenants.

Schedule 1 [4] enables regulations of a savings or transitional nature to be made as
a consequence of the enactment of the proposed Act.

Schedule 2 Amendment of Landlord and Tenant
(Rental Bonds) Act 1977 No 44
Schedule 2 makes the amendment to the Landlord and Tenant (Rental Bonds) Act
1977 described in the above Overview.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

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