What was Tenancy Tribunal case 4980068 about?

The tribunal order states: An application for suppression has been made in this case, and the Tribunal

How much money was awarded in case 4980068?

The reconciled net award was $27.00.

What type of tenancy dispute was case 4980068?

The primary dispute was Healthy homes.

Where can I read the official tribunal order for case 4980068?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/11892373-Tribunal_Order_Redacted.pdf.

What was Tenancy Tribunal case 4980068 about?

The tribunal order states: An application for suppression has been made in this case, and the Tribunal

How much money was awarded in case 4980068?

The reconciled net award was $27.00.

What type of tenancy dispute was case 4980068?

The primary dispute was Healthy homes.

Where can I read the official tribunal order for case 4980068?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/11892373-Tribunal_Order_Redacted.pdf.

New Zealand Tenancy Tribunal Case 4980068 — Healthy homes

Order

An application for suppression has been made in this case, and the Tribunal orders suppression of the Tenant/Landlord name and identifying details.
The Bond Centre is to pay the bond of $400.00 ([Bond number suppressed]) to [The tenant/s] immediately.
[The landlord/s] is to pay [The tenant/s] $27.00 being reimbursement of the filing fee.
The landlord’s application is dismissed.

Reasons

Both parties attended the hearing, which was conducted by teleconference. An earlier hearing was held (which the landlord did not attend), following which the Tribunal confirmed its jurisdiction to consider the substantive issues in the two applications filed by the parties. For ease of reference, I will refer to [The tenant/s] as the tenants, and [The landlord/s] as the landlord.
The premises is a two-storey home, with Room 1 being located on the ground floor. The owner of the premises signed a residential tenancy agreement with [The landlord/s]. [The landlord/s] is one of three tenants named in this agreement. [The landlord/s] then sublet her room to [The previous tenants] (the previous tenants). The previous tenants then advertised via Facebook, the tenants contacted them, and signed a ‘Change of Tenant’ form.
The tenants met the previous tenants on 19 August 2024 and paid $400 bond in cash. The previous tenants gave them a blank standard form tenancy agreement (they did not receive a completed tenancy agreement). The tenants viewed the premises, were concerned about its condition, and did not move in. They returned the keys to the owner. Both parties have filed applications to the Tribunal.
In their application (application number 4980068) [The tenant/s] seek the return of the bond of $400.00, which they paid to the previous tenants. They also want confirmation that they are not liable for rent, as claimed by [The landlord/s], and want to be released from any obligation to pay rent, and from the fixed term tenancy.
In their application the tenants wrote there was no agreement with the landlord, and nothing was in writing. They signed a Change of Tenant form, and did not receive a copy of the tenancy agreement, since no agreement was reached with the landlord. Furthermore, they did not receive any information about the bank account number to pay rent into. The tenants also noted claims relating to the Healthy Homes Standards, but these claims were not pursued.
The landlord filed a cross application (application 5004270) seeking rent arrears of $690.00. At the hearing, the landlord stated she sought rent up to 30 September 2024, with the total rent arrears being $1,380.00.
Both parties provided documentary evidence with their applications, and gave oral evidence at the hearing. Legal framework
The Residential Tenancies Act 1986 (the RTA) applies to every tenancy for residential purposes. There are some exclusions, listed in Section 5 of the Act.
A tenancy, in relation to any residential premises, means the right to occupy the premises (whether exclusively or otherwise) in consideration for rent...
A landlord, in relation to residential premises subject to a tenancy agreement, means the grantor of a tenancy of the premises under the agreement. 1 1 s.2 RTA definition of “landlord”
A tenant, in relation to residential premises subject to a tenancy agreement, means the grantee of a tenancy of the premises under the agreement. 2
Section 2 of the RTA defines an assignment as a transfer to a person of all of the rights that a tenant has under a tenancy agreement. This may be summarised as follows: ‘An assignment occurs where the tenant (the assignor) arranges for someone else (the assignee) to be the tenant in the assignor’s place. In such a case, the assignor then has nothing more to do with the tenancy.’ 3
Assignment of the tenancy is allowed by the Sections 43A and 43B of the RTA.
Section 43C of the RTA details the effect of the assignment being that on the date of assignment, the outgoing tenant ceases to be responsible to the landlord for the obligations imposed on the tenant by the agreement and the RTA. Therefore, from the date of assignment the outgoing tenant has nothing more to do with the tenancy and the new tenant (the assignor) accrues all the rights and obligations afforded to them under the RTA. Correspondingly, the landlord assumes responsibilities to the new tenants under the RTA. Analysis
Having considered the evidence and submissions of both parties, I find that, in this case, there was no valid assignment to the tenants, and therefore, they will not be liable for the rent claimed by the landlord. Furthermore, I am satisfied, from the evidence, that the tenants paid $400.00 to the previous tenants. This money is held at the Bond Centre in the names of the previous tenants, and ought to be returned to the current tenants, so an order is made to this effect. My reasons are set out below. Nature of the tenancy
As noted in my earlier order, [The landlord/s] was effectively the sublandlord. In Residential Tenancy Law in New Zealand by S. Benson, it was noted that a subtenancy is a tenancy agreement between a tenant (as sublandlord) and another person (the subtenant) where the tenant remains liable under the head tenancy agreement to the landlord. A subtenant is a tenant as the grantee of a tenancy with a right to occupy the premises for rent. 4 A tenant who subleases tenancy premises should lodge any bond paid by the subtenant with the Bond Centre. 2 s.2 RTA definition of “tenant” 3 See Residential Tenancy Law in New Zealand, S. Benson (2018), paragraph 3.10 4 See section 2(1) definition of “tenancy” and “tenant”
So, [The landlord/s] was the tenant in terms of her residential tenancy agreement with the owner/landlord. However, she then arranged to sublease the room she occupied, and became the sublandlord. She appears to have assigned the tenancy to [The previous tenants], the previous subtenants.
The question to determine is whether there was a valid assignment to [The tenant/s], so they effectively became subtenants. My finding is that the purported assignment was invalid, for the following reasons. Assignment of the tenancy
In an assignment of an existing tenancy, the terms and conditions would usually stay the same, and the responsibilities of the outgoing tenants (in this case, [The previous tenants]) would be taken over by the incoming tenants. In this case, however, while they signed a Change of Tenant form, [The tenant/s] were never given a copy of the agreement at the start, so they were not properly informed of the terms of the agreement.
Providing a copy of the standard form tenancy agreement from the Tenancy Services website is not sufficient. The tenants only saw the agreement much later, when the landlord filed an application with the Tribunal.
The RTA requires that tenancy agreements be in writing, and be signed by the landlord and tenant. The landlord is also required, before the start of the tenancy, to provide the tenant with a copy of the tenancy agreement. (However, the Tribunal has jurisdiction even if there is no written agreement).
General principles of contract law apply to residential tenancy agreements. A tenancy agreement is an enforceable agreement if there is an offer, acceptance, and certainty of key terms 5 . The legislation sets out the minimum requirements for the contents of a tenancy agreement under section 13A. This includes the recording of the full name and contact address of the landlord and tenant, contact details, address of the premises, date of the tenancy agreement, bond amount, rent payable, frequency of rent payments, the place or bank account number where rent is to be paid.
In this case, some key information was not provided to [The tenant/s]. As they have stated, their names were not recorded, and there were no bank account details for payment of rent. They also point out that no start date or commencement date was provided, and they did not receive any contact details for an appointed agent when the landlord was overseas.
The landlord’s evidence is that she understood the previous tenants had given the tenants a copy of the tenancy agreement and the bank details. It is the 5 Challenge Rentals Property Management Ltd v Patullo [2016] NZDC 4138 landlord’s responsibility to ensure this occurs, even if an arrangement was made with the previous tenants to provide this information. As such, there was no certainty of the key terms of the agreement.
The agreement provided by the landlord records her name but does not record the name of the tenant/s. It states it is for a fixed term, from 30 June 2024 and ends on 30 September 2024. The copy of the agreement between the landlord and the owner has also been provided. This records the names of two other tenants. This tenancy commenced on 25 December 2023 and was for a fixed term, to end on 17 November 2024.
The Change of Tenant form makes it clear that this form is used to notify Tenancy Services of a change of tenant “within an existing tenancy that is continuing.” So, while the form records the weekly rent of $230.00, a bond of $400.00, and the tenancy address, this form is not the tenancy agreement. Furthermore, it appears that, at the time the tenants signed it, it was incomplete, since the landlord details were not recorded in Section 1 of the form. There is, however, another copy of this form, where the landlord’s details are recorded, and it is signed.
While the tenants paid $400.00 for the bond to the previous tenants, and received the keys from them, they have not received written confirmation that the bond has been transferred into their names. The landlord has provided an email from the Bond Centre dated 23 August 2024. However, this is an automatic reply email acknowledging receipt of a request, with the subject line “Change of Tenant bond.” The landlord has not provided written confirmation of the Bond Centre changing the bond into the names of [The tenant/s].
For the above reasons, I find that the purported assignment to [The tenant/s] was invalid. Accordingly, the landlord will not be entitled to the rent claimed, and the landlord’s application is dismissed. The bond
In terms of the amount paid by [The tenant/s] to the previous tenants, it is the landlord’s responsibility to lodge any bond with the Bond Centre. While there is a bond of $400.00 held at the Bond Centre, the electronic records available to me show that it is still in the names of the previous tenants.
I accept [The tenant/s]’s evidence of payment of the bond to the previous tenants. The signing of the Change of Tenant form indicates that the previous tenants have no claim over the bond. I am satisfied, on the evidence before me, that the bond amount of $400.00 ought to be paid to [The tenant/s]. Name suppression and filing fee
Both parties seek name suppression. The tenants are entitled to name suppression, as their claim has been successful. Having had regard to the interests of the parties and to the public interest, I also agree to suppress the landlord’s name.
As the tenants have been successful with their application, the landlord is to pay the tenants’ filing fee.

Tenancy Tribunal case 4980068 — Healthy homes

At a glance

Tenancy Tribunal case 4980068 — Healthy homes

At a glance

Award balance

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions

Award balance

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions