We have just found out that since we are renting back a property that we used to own, we are not covered under the residential tenancy act, but are bound by a tenancy agreement.
Can someone please shed some light on what this means, and what the consequences can be?Hi Bonnie,
Well……….I’ll be buggered. You learn something new everyday – you are right as someone involved in the sale of said property you are outside the Act.
I suugest a call to the tenants advisory service of WA. See what they can tell you.
Derek
[email protected]
0409 882 958
Property investment advice and researched property in quality locations available.Doesn’t make sense. If it is a property that you “used to own,” and if settlement has occurred, then you are no longer involved in the sale, and you don’t own it. If a tenancy exists, then the Residential Tenancies Act applies.
Please post here urgently anything you can find out if any of the above is incorrect,
most appreciated.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
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Hi Crest,
See below an extract from the Act
5. Application of Act
(1) Subject to this section and sections 6 and 7, this Act applies to any residential tenancy agreement entered into, renewed, extended, assigned or otherwise transferred after the commencement of this Act.
(2) This Act does not apply to any residential tenancy agreement —
(a) where the tenant is a party to an agreement for the sale and purchase of the premises;Derek
[email protected]
0409 882 958
Property investment advice and researched property in quality locations available.Hi Derek,
Thanks for confirming this for me.
Can you tell me what the consequences could be by not being covered under the act.
Thanks alot.” 2) This Act does not apply to any residential tenancy agreement —
(a) where the tenant is a party to an agreement for the sale and purchase of the premises; “What about later, when the agreement for the sale and purchase has been completed , are they no longer a party to an agreement to buy or sell because it’s been and gone, ?? They no longer own it, and there’s no agreement. how long do they remain in limbo ? Sounds ridiculous. It’s bad enough being subject to the Residential Tenancies Act, but it’d be hell without it.
What act tells the parties how to act ??.
somebody put me out of my misery. [blink] [arrowhead]
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Originally posted by Bonnie:Can you tell me what the consequences could be by not being covered under the act.
Hi Bonnie,
This one slipped below the radar – sorry.
The Act is designed to provide ‘protection’ (if that is the right word) to landlords and tenants alike.
If there is a dispute between the two parties then the first reference point is the rental agreement – if this is unresolved or one party acts outside the agreement then there is a course of action that can be taken to resolve the matter at hand.
I would suspect under the circumstances you outlined – you (or your landlord) do not have a second point of reference.
As I indicated earlier – give the tenant’s advisory service a call. They may be able to shed light on the matter.
I also wonder whether or not this issue has become unnecessarily ‘bigger than Ben Hur’ – maybe a face to face reconcilatory meeting with the new owners may be in order. Just a thought.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Originally posted by thecrest:What about later, when the agreement for the sale and purchase has been completed , are they no longer a party to an agreement to buy or sell because it’s been and gone, ?? They no longer own it, and there’s no agreement. how long do they remain in limbo ?
I suspect the line of thinking here is that the ‘party relationship’ exists ad infinitum when a tenant/landlord relationship exists immediately upon completion of the sale.
If on the other hand the previous owner came back as a tenant later I assume the Act would apply.
A question really for the legal beagles.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi Derek,
Thanks very much for your reply.
Hopefully there won’t be any problems between us and the new owners even though we are not covered under the tenancy act. We keep in regular contact with them and they appear to be very reasonable people.
I just wanted to know the consequences of not being covered under the act in case any problems arose in the future. I always like to be prepared and know the rules just in case. I’ll definitely give the tenant’s advisory service a call for further information.
Thanks alot,
BonnieThank Derek
Good Luck Bonnie.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
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