Alternative to a bond—guarantee or indemnity
16 Alternative to a bond—guarantee or indemnity
Subject to subsection (2), in addition to or in place of a bond, a lessor may accept either a guarantee or an indemnity for the performance of a tenant’s obligations under a residential tenancy agreement.
A guarantee or an indemnity under subsection (1) is only enforceable against the guarantor or indemnifier—
if it is in addition to a bond—to the extent of the difference between the maximum amount that would have been payable by the tenant as a bond and the amount that is payable by the tenant as a bond; or
if it is in place of a bond—to the extent of the maximum amount that would have been payable by the tenant as a bond.
A term of a commercial guarantee, in relation to a residential tenancy agreement, that is inconsistent with, or is in addition to, a registered standard guarantee contract is void.
If a regulation requires a commercial guarantee to include a term in the contract, the guarantee is taken to include the term.
If a regulation requires a matter to be excluded from a commercial guarantee, the guarantee is void to the extent that it includes the matter.
In this section:
registered standard guarantee contract means a standard guarantee contract registered under section 104.
This provision refers to the regulations (a regulation
). Made under this Act:
- Residential Tenancies Regulation 1998 · under s 136
This Act’s bill:Explanatory statement
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