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Contents (2010 - 42)
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Residential Tenancies Act 2010 No 42
Current version for 7 July 2017 to date (accessed 21 August 2017 at 16:27)
Part 8 Division 2
Division 2 Payment and deposit of rental bonds
159   Payment of bonds
(1)  A landlord, landlord’s agent or any other person must not require or receive from a tenant or another person a rental bond of an amount exceeding 4 weeks rent under the residential tenancy agreement for which the bond was paid (as in force when the agreement was entered into).
(1A)  A landlord, landlord’s agent or any other person must not require or receive from a tenant a rental bond unless:
(a)  the landlord or landlord’s agent is registered as a user of the online rental bond service established under section 157A, and
(b)  the tenant has been invited by the landlord or the landlord’s agent to provide an address that can be used to invite the tenant (using the online service) to use the online service to deposit the rental bond with the Secretary, and
(c)  if the tenant has provided such an address:
(i)  the landlord or landlord’s agent has invited the tenant (using the online service) to use the online service to deposit the rental bond with the Secretary, and
(ii)  the tenant has been given a reasonable opportunity to use the online service to deposit the rental bond with the Secretary or has declined the invitation.
(2)  A landlord, landlord’s agent or any other person must not require from a tenant or another person an amount of rental bond before the tenant signs the residential tenancy agreement.
(2A)  Subsection (2) does not prevent a landlord, landlord’s agent or other person from requiring a tenant or other person who has agreed to deposit a rental bond for a residential tenancy agreement with the Secretary to provide evidence that the rental bond has been so deposited before the residential tenancy agreement is entered into.
(3)  A person who receives payment of a rental bond must provide the tenant, or person paying the bond, with a receipt for the bond but is not required to do so if details of the payment are recorded in the residential tenancy agreement.
(4)  A person who contravenes this section is guilty of an offence.
Maximum penalty: 20 penalty units.
160   Other security may not be required
(1)  A landlord, landlord’s agent or any other person must not require or receive from a tenant or another person anything other than a rental bond as security for any failure by a tenant to comply with the terms of a residential tenancy agreement.
Maximum penalty: 20 penalty units.
(2)  This section does not apply to an undertaking:
(a)  given to a landlord by the Secretary of the Department of Family and Community Services (or the New South Wales Land and Housing Corporation on behalf of that Secretary), or a person authorised in writing for the purposes of this section by that Secretary, and
(b)  that provides that, subject to specified conditions, the landlord will be indemnified up to a specified amount against loss or damage arising from any breach of a residential tenancy agreement by a specified tenant.
161   One rental bond for each agreement
(1)  A landlord, landlord’s agent or any other person must not require or receive more than one rental bond for a residential tenancy agreement.
(2)  A landlord, landlord’s agent or any other person must not require or receive from a tenant or another person a rental bond or additional amounts of rental bond if:
(a)  a rental bond was paid (and not claimed) for residential premises under a residential tenancy agreement, and
(b)  one or more of the tenants under that agreement continue to occupy the residential premises under one or more successive residential tenancy agreements.
Maximum penalty: 20 penalty units.
162   Deposit of rental bonds
(1)  A landlord, landlord’s agent or other person who receives an amount of rental bond must deposit that amount with the Secretary within the deposit period together with a notice in the approved form.
(2)  A rental bond may, if the landlord and tenant agree, be paid by instalments commencing on the signing of the residential tenancy agreement.
(3)  The deposit periods for a rental bond (other than a bond paid by instalments) are as follows:
(a)  for a bond paid to a landlord or person other than a landlord’s agent—10 working days after the bond is paid or such other period as may be prescribed by the regulations,
(b)  for a bond paid to a landlord’s agent—10 working days after the end of the month in which the bond is paid or such other period as may be prescribed by the regulations.
(4)  The deposit periods for a rental bond paid by instalments are as follows:
(a)  if the total amount of the bond is paid within 3 months of the first instalment being paid—10 working days after the total bond is paid,
(b)  if the total amount is not paid within 3 months of the first instalment being paid, for any instalments paid within that period—3 months after the first instalment is paid or 10 working days after each instalment is paid (whichever occurs later),
(c)  if one or more instalments are paid after 3 months of the first instalment being paid—every 3 months until the bond is fully paid.
(5)  A person who contravenes this section is guilty of an offence.
Maximum penalty: 20 penalty units.
(6)  This section does not apply if:
(a)  the rental bond is refunded or becomes refundable, or
(b)  the rental bond becomes the subject of proceedings before the Tribunal or a court in relation to a residential tenancy agreement.