South Australian Consolidated Acts

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RESIDENTIAL TENANCIES ACT 1995 - SECT 74

74—Assignment of tenant's rights under residential tenancy agreement

        (1)         A tenant under a residential tenancy agreement may, by written or oral agreement with another—

            (a)         assign the tenant's interest in the agreement to the other; or

            (b)         sub-let the premises to which the residential tenancy agreement relates to the other.

        (2)         However, it is a term of a residential tenancy agreement that—

            (a)         the tenant must not assign the tenant's interest, or sub-let the premises, without the written consent of the landlord; but

            (b)         the landlord

                  (i)         must not unreasonably withhold consent (unless the landlord is a registered housing co-operative, in which case the landlord has an absolute discretion to withhold consent to an assignment); and

                  (ii)         must not make a charge for giving consent or considering an application for consent exceeding the landlord's reasonable expenses.

        (2a)         The absence of consent does not invalidate an assignment or sublease unless the landlord is a registered housing co-operative. However, if the landlord's consent to an assignment is not obtained, the tenant who assigns the interest remains liable to the landlord under the residential tenancy agreement (together with the new tenant, who is jointly and severally liable) unless the landlord has unreasonably withheld consent. This continuing liability of the assignor does not apply, in the case of a periodic tenancy, to a liability accruing more than 21 days after the landlord became aware or ought reasonably to have become aware of the assignment (whichever is the earlier).

        (2b)         If the landlord's consent to an assignment is not obtained and the landlord had, before the assignment, served a notice of termination on the assignor, the landlord may enforce the notice against the assignee.

        (2c)         The landlord may terminate a residential tenancy agreement on the ground that the tenant has assigned the tenant's interest, or has granted a sub-tenancy, without the landlord's consent, but only if the landlord has not unreasonably withheld consent and serves the notice of termination within 21 days after the time the landlord became aware or ought reasonably to have become aware of the assignment or sub-tenancy (whichever is the earlier).

        (3)         The effect of an assignment under this section is that the assignee is substituted for the assignor as tenant under the residential tenancy agreement (but the assignor remains responsible for liabilities that accrued before the date of the assignment) 1 .

        (4)         An assignee is liable to indemnify the assignor for liabilities incurred by the assignor to the landlord because of a breach of the residential tenancy agreement by the assignee.

        (5)         If the tenant assigns the tenant's interest, an amount paid by the tenant and held by way of security will (unless the parties agree to the contrary) continue to be held as security for the proper performance by the assignee of obligations under the residential tenancy agreement.

Note—

1         If the assignment is made without the landlord's consent, the tenant may also remain liable under the agreement for liabilities that accrue later—See above.



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