Home Hunters Realty

 

Who Holds the Bond?

 

When the tenant pays the bond, the owner/agent must give a receipt immediately, showing the name of the person who paid, the premises involved, the amount and the date.

Within 14 days, the owner must place the bond into a 'Tenancy Bond Account' with the Bond Administrator, or an authorised financial institution (bank, building society, credit union).

A guide entitled 'Tenancy Bonds lodged with the Bond Administrator' is available from the Ministry of Fair Trading.

If a real estate agent is handling the property the agent should deposit the bond as soon as practicable into a 'REBA Tenancy Bond Trust Account', or into an individual Tenancy Bond Account held by the Bond Administrator. The bond must be held in a joint account showing the names of the owner and tenant. To facilitate this, bond monies must be lodged using Form 8 (Lodgement/Variation of Security Bond Money). Financial institutions may have their own version of this form. The signatures of both the owner/agent and tenants must be endorsed on the form.

If more than one person has paid money as part of the bond, it is important that the names of all the parties appear on the lodgement form, to protect their share.

The owner/agent must keep a record of the bond payment which includes the date, amount, name and number of the account into which the amount was paid.

The prescribed Form 1 (Record of Payment) attached to the Form 8 has been designed for this purpose and the completed blue copy must be given to the tenant within 28 days of paying the money to the bond holder. A separate version of Form 1 (Record of Payment) is available for use by owners/agents if required. If the bond is not paid to the Bond Administrator, a financial institution or into a 'REBA Tenancy Bond Trust Account' as appropriate and as required by the Act, the owner/agent may be prosecuted.