Draft Lease Agreement Northern Territory

Northern Territory Residential Tenancy is subject to and governed by the Residential Tenancies Act 1999. The Act came into force on 1st March 2000 to regulate the relationship between landlord and tenant under residential tenancy agreements. The Act covers most people in residential tenancies and it applies to both written and verbal agreements.

Whenever a landlord grants a right of occupation of residential premises, or part of premises to another person for the purpose of use as a residence in exchange for rent in the Northern Territory, the act applies. However, there are many exemptions to this rule. For instance the Act does not apply:

• to borders or lodgers, where there are less than 3 people in the premises
• to caravan park accomadation like mobile homes etc
• to a premises if it is used as a holiday home
• to premises provided for charitable purposes such as homeless or disadvantaged persons.
• If there is no rent payable or services are provided in exchange for accomodation.

For a complete list of exclusion under the Act consult section six (6) of the Act.

Before entering into the NT Rental Agreement, or the premises itself, there are a number of documents that are required to be provided by the Landlord or the Landlord's Agent. These documents include a condition report, completed in the presence of the tenant, and a written copy of the lease itself. It is recommended that both the Landlord and the tenant read a copy of A Guide to Renting in the Northern Territory. This booklet is a guide to the right and responsibilities of both then tenant and the Landlord, and is freely available form the Northern Territory Consumer Affairs Tenancy Unit.

Time must be allowed for the tenant to read and understand the terms of the agreement and the condition report, before they are required to sign it. Seeking appropriate legal advice is advised.

The Lease Agreement
The Rental Agreement, or lease are binding contracts between the Landlord and the tenant. The lease agreement is made up of two parts. The first defines the rights and obligations of the parties involved, as prescribed under the act. The other part is the condition report. The Landlord or Landlord's Agent must ensure the tenant receives a signed copy of the draft lease agreement within 7 days ( one week) of the agreement being executed by the parties.

Condition Report
The Landlord must fill out and sign three copies of the property condition report. Two of these must be provided to the tenant, signed, within three (3) days of the tenant occupying the premises. If the tenant does not agree with the state of the property outlined in the report, then they can state this on the condition report. The tenant must return a signed copy of the condition report to the Landlord or Landlord's Agent within five (5) days after the tenant receives the report, and is to keep the other copy.

Security Deposit
If a security deposit is required by the Landlord, then that deposit can only be no more then 4 weeks (one calender month) worth of rent. Also, the Landlord can only accept one bond in relation to a tenancy agreement. Landlord's (not agents) are required to hold security deposits in trust for the tenant, and must pay it back to the tenant, when the agreement is terminated (provided there are no claims against the tenant resulting in the loss of the security deposit). See part 5 Div2 of the Act for more details.

Rent in Advance
A Landlord may require a rental advance equal to one rental payment period ( a week or a fortnight etc), from the first day of the tenancy. This is negotiable with the Landlord, and not necessarily compulsary.

Terminating draft lease agreement
The termination of leases must be done in compliance with the Residential tenancies act of 1999.

It is essential that when a tenant or a Landlord attempts to end the tenancy agreement, that it is done in such a way to keep it legal and consistent under the Act. There are 3 main ways to conclude a tenancy agreement, including:

• agreement of all parties to end the tenancy early, or
• a ‘Notice to Vacate’ is given to the tenant from the Landlord or Agent, or
• a tenant gives notice to the landlord or agent that they intend to vacate.

In some cases, the Commissioner of Tenancies or the Court may make an order to terminate an agreement.

Unless the terms of the fixed term agreement are breached by the Landlord, then the tenant is committed to honour their obligations ( rent, duration etc). Once the fixed term tenancy has ended, tenants are required to give at least 14 days notice and the Landlord must also give 14 days notice, both parties must be in accordance with section 101 of the act.

If the tenant breaks the tenancy agreement early the Landlord may claim compensation for any loss suffered, including maintenance expenses on the property until the landlord finds a new tenant or the original tenancy period expires.

Draft Lease Agreement Kits for the Northern Territory are available as a downloadable MS word document. These are an editable document, that can be used repeatedly and allow a certain amount of flexibiliy unlike a hardcopy, so you can edit to your needs and use repeatedly.

For more information consult the Northern Territory Residential Tenancies Act 1999 or contact the Consumer Affairs Tenancy Unit.

Northern Territory draft lease agreement Available for Immediate Download Click Here