Key money, bonds, and rents

17 Requiring key money prohibited

(1)

Subject to subsection (4), no person shall, without the prior consent of the Tribunal, require the payment of key money in respect of—

(a)

the grant, continuance, extension, variation, or renewal of any tenancy agreement; or

(b)

the assignment of a tenant’s interest under any tenancy agreement; or

(c)

the subletting of the whole or any part of the premises by a tenant.

(2)

The Tribunal shall not give its consent under subsection (1) unless it is satisfied that, having regard to the special circumstances of the case, including the nature of the premises and any matters personal to the landlord or the tenant or the proposed assignee or the proposed subtenant, it would be fair and reasonable to allow the requirement of key money.

(3)

The requiring of key money in contravention of subsection (1) is hereby declared to be an unlawful act.

(4)

Subsection (1) shall not apply to any of the following:

(a)

any sum required or received for an option to enter into a tenancy agreement if the sum does not exceed 1 week’s rent payable under the agreement, and, upon the option being exercised, the sum is refunded or is applied toward the rent:

(b)

any sum that the landlord is authorised by any other provision of this Act to require or receive:

(c)

any sum required to be paid by the tenant to or at the direction of the landlord in respect of any fee or other charge for services rendered by any solicitor or letting agent relating to the grant or assignment of the tenancy:

(d)

any payment of a prescribed class.

Compare: 1973 No 26 s 22; Residential Tenancies Act 1978–1981 s 30 (SA)

Section 17(4)(c): amended, on 1 October 2010, by section 14 of the Residential Tenancies Amendment Act 2010 (2010 No 95).