New South Wales Consolidated Acts

LANDLORD AND TENANT (RENTAL BONDS) ACT 1977 - SECT 9

9 Rental bonds to be in money

(1) Notwithstanding the terms of any agreement, no person as lessor of residential premises shall, in respect of a lease or proposed lease of those premises, demand or receive from another person anything, other than money, that would have the effect of securing the lessor against any failure by a lessee to comply with any terms or conditions applying to or in connection with that lease or proposed lease, whether that thing is to be received by or deposited with:

(a) the lessor,

(b) another person in accordance with the directions of the lessor or the terms or conditions of the lease or proposed lease, or

(c) another person acting on behalf of the lessor.

(2) Notwithstanding the terms of any agreement, a lessor of residential premises shall not, in respect of a lease or proposed lease of those premises, demand an amount of money that would, if deposited or paid, be a rental bond, or receive a rental bond, of an amount that exceeds the rental of those premises:

(a) in the case of a lease or proposed lease of unfurnished premises-in respect of the first 4 weeks of the lease or proposed lease,

(b) in the case of a lease or proposed lease of furnished premises-in respect of the first 6 weeks of the lease or proposed lease, or

(c) where some other period is prescribed for the purposes of paragraph (a) or (b), for that other period in the case of a lease or proposed lease referred to in that paragraph.

(3) A lessor shall be deemed to have demanded a rental bond if a term or condition of the lease or proposed lease requires that rental bond to be deposited with or paid to the lessor or another person in accordance with the directions of the lessor or acting on behalf of the lessor.