The New Prescribed Lease

New Prescribed Lease Agreement – Compulsory for all new leases.

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Under the new legislation Section 27a deals with the new prescribed lease. All new leases will have to be written on the new lease form which is available to anyone on the Department of Commerce Website.

The Prescribed Form will have three parts:

Part A – contains details of the parties to the agreement and a description of important information including the premises, details of tenants, lessor, property manager, address of premises, duration of tenancy, rent payable etc.

Part B – features standard terms of the lease. These terms can’t be excluded or altered in any way.

Part C – can contain additional terms of the lease. Lessors and property managers cannot include any terms or special conditions in the lease that are inconsistent with the amended Act or that breach the provisions about unfair contract terms in the Fair Trading Act 2010. Any such terms or conditions are void and of no effect.

It is an offence to enter into an agreement or arrangement with intent to defeat, evade or prevent the operation of the Act. The penalty is a $10,000 fine.

There is also a new Prescribed Information for Tenants. It was already a requirement of the Regulations that a lessor provide a tenant with the form entitled Schedule 2 – Information for Tenant. The new prescribed information will need to be provided at the start of the tenancy. It is now a much abbreviated form, because most of the information that is contained in the current Schedule 2 booklet will in future be contained in the prescribed lease document.

The new prescribed form and information for tenants will be available from the Department of Commerce website.