Home Hunters Realty

 

Refund of Bond Money

 

At the end of a tenancy, bond money will only be paid out if the owner and tenant apply jointly, or if one of them obtains a court order from a magistrate.

If there is no dispute over the condition of the property on handing it back to the owner, or both parties have agreed how the bond money should be divided to pay for any damage etc, they must sign Form 4 (Joint Application For Disposal of Security Bond) and present it to the bond holder.

IMPORTANT: Owners and tenants should make sure the form is filled in correctly before signing it. NEVER sign a blank or partially completed form.

Agents are required to pay out the bond money within seven days of receiving Form 4 signed by both parties.

If a dispute arises over how the bond money should be paid out, the parties can seek to resolve it by negotiation, or by taking action in the Small Disputes Division of the Local Court nearest to the rented premises.

If the tenant goes to the Small Disputes Division and the bond money is still held in the joint account, an Application For Disposal Of Bond Money (Form 6), should be completed. Once the form is lodged, the court will send a copy to the owner, who has three options:

  • agree to settle the dispute;
  • dispute the tenant's application (the owner lodges a Notice of Intention To Dispute Application For Disposal Of Bond Money (Form 5) within seven days), whereby the matter is set down for hearing before a clerk/magistrate; or
  • ignore the notice (the court may then issue an order for the release of the bond after seven days).

An owner may apply to the Small Disputes Division (using Form 6) for disposal of the bond money if the tenant refuses to sign the disposal form. If a dispute goes to court at the end of a tenancy, the clerk/magistrate will make an order as to how the bond money is to be paid out.