The Minister for Fair Trading, Virginia Judge, is proposing to introduce the Residential Tenancies Amendment (Mortgagee Repossessions) Bill 2009 (the Mortgagee Repossessions bill) into the legislative assembly on 2 June 2009.
According to the NSW Office of Fair Trading press statement released today the Mortgagee Repossessions bill is expected to have the following ramifications:
- immediate introduction of a 30 day notice period to vacate once a mortgagee is entitled to possession of rented premises;
- permit a mortgagee who becomes entitled to possession of a premises to authorise the release of the tenant's rental bond; and
- relief for relocation expenses, with tenants who receive an eviction notice to withhold all future rent and/or recoup advance payments – ie. a rent holiday, or compensation from the mortgagee.
The changes proposed by the NSW Office of Fair Trading have been in the pipeline for more than 2 years. However, with 395 repossessions taking place in the first quarter of 20091 we expect that the Mortgagee Repossessions bill will pass through both houses of parliament quickly. The NSW government proposes a further 100 changes to the Residential Tenancies Act 1987 but will provide a consultative process prior to introducing changes to parliament.
We will provide you with a further update once we have a copy of the proposed bill.
Footnote
1 Office of the NSW Attorney General
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