New South Wales will lead the way in protecting tenants if their homes are repossessed because the landlord defaulted on loan repayments thanks to a new law passed by State Parliament today.

Minister for Fair Trading, Virginia Judge, said the Government had adopted a fair and commonsense approach for dealing with the difficult circumstances that can arise during the lawful process for repossession of a tenanted property.

“There are no winners when it comes to mortgagee repossessions,” Ms Judge said.

“They leave a financial and emotional scar on investors and on the tenants who lose their homes in these situations through no fault of their own.

“This new law addresses an inequity in the community and offers immediate and effective relief for tenants,” Ms Judge said.

The Residential Tenancies Amendment (Mortgagee Repossessions) Bill 2009 provides important safeguards for tenants, including:

• immediate introduction of a minimum 30-day notice to tenants to vacate from mortgagees seeking vacant possession
• relief for relocation expenses through a rent holiday, with tenants who receive an eviction notice to immediately cease paying rent and have any advance payments refunded
• faster release of a tenant’s rental bond by allowing a mortgagee who becomes entitled to possession of rented premises to authorise the payment.

There have been 395 writs of possession enforced in NSW in the first 3 months of 2009.

Any possible increase in the rate of mortgagee repossessions poses serious repercussions for tenants.

Ms Judge urged people experiencing financial stress to take advantage of $6.6 million in new funding for two Rees Government programs announced today.

“Total funding for the No Interest Loans Scheme and Financial Counselling Services Program now stands at almost $20 million over three years,” she said.

“The Rees Government is delivering legislative reforms and frontline services which make a real difference to families in tough times.”

It is anticipated that a major package of residential tenancy law reforms will be released for public comment before the end of the year.

Back to Media releases