Northern Territory Consolidated Acts

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RESIDENTIAL TENANCIES ACT - SECT 44

Accelerated rent and liquidated damages prohibited

44. Accelerated rent and liquidated damages prohibited

(1) A landlord must not enter into, or offer to enter into, a tenancy agreement a term of which is to the effect that, on breach by the tenant of a term of the agreement (including a term as to rent), the tenant is liable to pay:

(a) all or any part of the rent remaining payable under the agreement;

(b) rent of an increased amount;

(c) an amount by way of penalty that is not reasonably proportional to the actual loss that is suffered as a consequence of the breach; or

(d) an amount by way of liquidated damages that is not reasonably proportional to the actual loss that may be suffered as a consequence of the breach.

Penalty: 20 penalty units.

(2) A provision of a kind referred to in subsection (1) is void.

(3) This section does not apply in relation to an increase in the amount of rent payable by a tenant because of the cancellation or adjustment of a rent rebate.



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