Hi, All
I am about to rent a property, however the owner insist to put "TBA" on the actual rental address field, claiming this makes their tax return easier for next year, and it will ot affect the agreement.
I really like the house, just want to check what does this mean and what the owner try to do, also are there any side effects later on?
Thanks all
Yes, how can you prove that you have a right to lease the house if it says TBA? You cannot agree to lease a premises if you cannot determine it's address – the owner may change theire mind and say you agreed to stay in the garage or in a flat in another suburb 200 km away.
It will make no difference to the owner – it is a con. What is your rental bond form going to say "Address: TBA" which will not be accepted by the Bond Board or is the owner going to hold on to your bond as well – which is illegal. Have you been given a copy of the Renter's Guide for your state?
Is the landlord going to issue you with receipts?
The owner is a friend of mine, and I trust them, it appears they need this for their tax purposes.
They going to issue me receipt for all payments and looks like they going to keep the bond themselves.
All I want to know is if we all agree, this should not be an issue?
Cheers all
if your lease says it is TBA then you cannot prove that you have a right to occupy the premises.
If it is an agreement between friends, it has the opportunity to screw up a friendship.
Hi,
Sounds like a disaster waiting to happen.
If you went to a real estate agent and you didn't know them, would you do this? If you need any documents for your own purposes say for getting finance or a mobile phone (or anything) and they want proof of your adress, what will you say "oh it's TBA".
Sounds like you are going to go for a really big ride, one that doesn't end well for you.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeSo I suppose this will have no side effect to the landlord but myself?
Cheersjcar11457 wrote:The owner is a friend of mine, and I trust them, it appears they need this for their tax purposes.They going to issue me receipt for all payments and looks like they going to keep the bond themselves.
All I want to know is if we all agree, this should not be an issue?
Cheers all
Why would they need this for tax purposes? Your friend is trying to shonk either the tax office or you.
well, that's their problem as long as it does not affect me.
cheersUmm jacar11457,
Danger!!! DING, DING, DING!
The alarm bells don't seem to be ringing for you, maybe you have known your friend very intimately for the last 20 years and you have done this before with them? No?
I have never heard of putting TBA on a rental agreement. Not for tax or any other purpose.
Be very, very cautious with proceeding with this as when the owner decides not to give you the property based on the TBA then the only person who will be hurting will be you. It's not going to hurt your friend. Maybe they are looking for more rent or other tenants and this is their way of hedging their bets.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email Mejcar, the advice provided to you is coming from other landlords. If we can't see the reasoning behind it and have pointed out some of the downsides/dangers…………..
jcar11457 wrote:well, that's their problem as long as it does not affect me.
cheersWell, yes, it does affect you. You are knowingly aiding & abetting whatever scam your friend is getting up to for no reward but for all of the risk.
Hi jcar
Scott n Wolfe n Dan are right, I'm sure you can see that.
All the alarmed landlords are correct. Your friends are most likely dodging problems with tax or FHOG, but for whatever reason, trying to avoid documents showing their property is tenanted.These loose or poorly documented tenancies are a time bomb – see the post below which is current which shows just some of the possible bad outcomes.
https://www.propertyinvesting.com/forums/property-investing/help-needed/4334902#comment-226351With normal business deals, you need full documentation to protect yourself.
With business deal with friends, you and your friendship especially need full documentation.
Friends are too hard to find and are treasures – not to be risked with low doc deals.No document you sign with TBA is worth the paper anyway, it's meaningless, can't be lodged with bond board or tribunal or tabled in any legal scenario except to show complicity, irresponsibility or naiivete. It doesn't relate to any particular property so you can never substantiate that it relates to the property you are paying rent on, so why bother.
TBA format rent receipts would be worthless too.If you don't know what docs are required, contact the dept of fair trading in your state or buy a set of docs from a local REA.
Good luck
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Thanks all for the information, I will have a chat with my friend to sort things out
You won't have a lease at all if you do that.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
can you just cross out the "TBA" and insert the correct address on the lease, initial the change and then sign it without actually pointing out the change to your friend?
BTW I agree with everybody else-deals with friends get extra messy if they are not at arms length and completely above board. Just the fact you asked the question on this post in the first place means you are not 100% comfortable with the TBA bit.Imagine if this all goes belly up. What happens when you move to your next rental and the agent asks for a reference from your previous landlord…..
as everyone has pointed out, this whole arrangement is fraught with danger for you.Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
One of the requirements for a contract involving land is that it be in written form. And for a contract for land to be valid it needs to identify the land in question somehow, such as an address or a title reference or a name (eg. of a farm) etc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
as everyone has pointed out, this whole arrangement is fraught with danger for you.You must be logged in to reply to this topic. If you don't have an account, you can register here.
