Tenants’ Union welcomes law reform on mortgagee evictions

Media release, 1 June 2009

The Tenants’ Union of NSW welcomed today’s announcement that the NSW State Government would introduce this week legislation to better protect tenants from eviction when their landlords default on mortgage payments.

The changes, announced by the Minister for Fair Trading, Virginia Judge, would address a serious problem in New South Wales renting laws. Under current laws, tenants have been evicted by mortgagees with little or no notice, and no real prospect of compensation for their losses.

According to the Minister, the changes announced will provide:

• Immediate introduction of a 30 day notice to vacate once a mortgagee is entitled to possession of rented premises
• Permit a mortgagee who becomes entitled to possession of premises to authorise the release of the tenant’s rental bond
• Relief for relocation expenses, with tenants who receive an eviction notice to withhold all future rent and/or recoup advance payments – i.e. a rent holiday, or compensation from the mortgagee.

"The Tenants’ Union has previously asked the Government to deal with the mortgagee eviction problem as a matter of urgency, so we are very pleased that action is being taken now", said Chris Martin, Senior Policy Officer for the Tenants’ Union.

"The Tenants’ Union and the Tenants Advice and Advocacy Services saw a wave of these cases a couple of years ago, when interest rates were rising. We expect to see another wave in the coming months, as unemployment rises. This time, it looks like the law will better protect tenants."

"We look forward to seeing all the detail of the changes later this week."