ACT Draft Lease Agreement Australian Capital Territory

Residential Tenancy in ACT is goverened by and subject to the Residential Tenancies Act 1997, which came into force on the 26th May, 1998. Since then, the act has been amended with Residential Tenancies Amendment Act 2004 and Residential Tenancies Amendment Act 2006.

All people under residential tenancy, where the property owner has entered into an agreement with one person or more, to occupy the premises in exchange for rent, are covered. Whether the property is a unit, flat , house or even just a room, if the owner has entered into an agreement, the tenant has the right to occupy the premises for use as a home. Verbal and written agreements both come under the act.

There are some exemptions from the act. Residencies such as nursing homes, retirement villages or a hostel for disabled persons or the eldery are exempt from the act.

There are also other situations where the act does not cover the parties involved. Agreements made for holiday homes and those that have been made as part of the purchase or sale of the property. Also, when the tenant has the controlling interest in the company the owns the property, is also exempt.

Prior to entering into a ACT Rental Agreement, there are several documents the tenant must receive from the Landlord, or the Landlord's Agent. This list of documents includes a 'hard' copy of the lease, a list of costs that they will need to pay when they sign the lease and an information handbook called the The Renting Book. This booklet is a guide to the rights and responsibilities of the tenant and those of the landlord. A copy of this booklet is freely available form the ACT Office of Fair Trading.

Before being asked to sign the agreement, the tenant must be given time to read and understand the terms and clauses of the tenancy agreement and has had to agree with the condition report provided by the Landlord or Landlord's Agent. Seeking legal advice is encouraged before signing any legal document.

The Rental Agreement
The lease agreement is a binding legal contract between the Landlord and the Tenant. There are two parts to a lease agreement. The first part defines the rights and responsibilities of the parties involved, as prescribed under the act and the second part is the property condition report. A signed copy of the agreement must be provided to the tenant from the Landlord or Landlord's Agent, within 21 days (3 calender weeks) or the lease being executed by the parties.

Condition Report
At the start of the tenancy, the Landlord fills our and signs 3 copies of the condition report and gives two copies to the tenant. Agreement or disagreement with the condition of the property is indicated by the tenant with ticks, or comments in the corresponding space. If the tenant believes the report isnt corrent, and doesn't represent the true condition of the property, this is where to state this in writing. The tenant has 14 days (2 calender weeks) to return a signed copy of the condition report to the Landlord, or Landlord's Agent .

Bond
If a bond is required by the Landlord, it cannot be more then four weeks rent and the Landlord or Landlord's Agent can only receieve or require one bond for a draft lease agreement. Private Landlords are required to lodge the bond with the Office of Rental Bonds with the prescribed Bond Lodgement form within 14 days (2 calender weeks).

Rent in Advance
A total of one month's rent may be required in advance from the first day of the tenancy. This is situational, and negotiable with the Landlord.

Terminating Lease Agreements
Any termination of a contract must be done in compliance with the Residential tenancies act of 1997.
It is most important that when a tenant or landlord or agent attempts to end the tenancy agreement that it is done in such a way that it is consistent and legal under the Act. There are three main ways to end a tenancy agreement, including:
• agreement of all parties to end the tenancy early, or
• a landlord or agent gives a ‘Notice to Vacate’ to the tenant, or
• a tenant gives notice to the landlord or agent that they intend to vacate.

In some cases the Residential Tenancies Tribunal may make an order to terminate an agreement.

Draft Lease Agreement kits for The Australian Capital Territory are available from RP Emery and Associates as a downloadable MS word document. Unlike a hardcopy agreement, the MS word document can be used repeatedly and it also allows a certain amount of flexibility to edit as you see fit.

For more information consult the Residential Tenancies Act 1997or contact the Office of Fair Trading

Australian Capital Territory draft lease agreement Available for Immediate Download