New Residential Tenancy Law Changes - Disclosure Requirements

Strengthened information disclosure requirements

A landlord or agent must not make false or misleading statements or knowingly conceal certain material facts from a prospective tenant before they sign an agreement.

The list of current material facts is available in the information statement (checklist for new tenants) that a landlord or agent must give a tenant before the tenant enters into a tenancy agreement.

Before signing an agreement, a landlord or agent must also tell a tenant:

• Of any proposal to sell the property
• If the landlord has prepared a contract for sale,
• Or if a mortgagee (i.e. bank or other lender) is taking court action for possession of the property.

The news laws expand the list of current material facts and information that prospective tenants must be told before entering into an agreement. The new laws also provide a remedy for tenants when material facts and information are not disclosed.

The changes recognise the potential hardship tenants face if they are not provided with important information about a tenancy.

New material facts in addition to the current material facts, from 23 March 2020, a landlord or agent will also need to disclose if the property:

• Has been used for the manufacture or cultivation of a prohibited drug or prohibited plant in the last 2 years
• Is in a strata scheme where scheduled rectification work or major repairs will be carried out to common property during the fixed term of the agreement
• Is part of a building to which a: notice of intention to issue a fire safety order, or a fire safety order, has been issued requiring rectification of the building for external combustible cladding, or notice of intention to issue a building product rectification order,
• Or a building product rectification order, has been issued requiring rectification of the building for external combustible cladding,
• Or development application or complying certificate application has been lodged for rectification of the building for external combustible cladding.

New information to be disclosed to prospective strata tenants From 23 March 2020, before a tenancy agreement is signed, a landlord or agent will need to give a tenant a copy of the strata scheme’s by-laws.

They will also need to inform the tenant if a strata renewal committee is currently established for the scheme.

These changes provide greater protection for prospective strata tenants and are additional requirements to the general disclosure obligations.

Remedies for tenants for breaches to information disclosure obligations From 23 March 2020, a tenant will be able to end their tenancy agreement by giving at least 14 days’ notice if the landlord or agent fails to comply with any of the information disclosure obligations.

A tenant can also apply to the Tribunal for an order to end the tenancy. The Tribunal will also have the discretion to order the landlord to compensate the tenant for any costs incurred as a result of ending the tenancy agreement