bond lodgement
📖 What is bond lodgement? Meaning and definition
In New Zealand tenancy law, bond lodgement is a crucial obligation for landlords. When a tenant pays a bond, it is considered the tenant's money, and the landlord is legally required to send this payment to the Bond Centre. This process is designed to protect the tenant's interests by ensuring their money is held securely by an independent third party.
The Residential Tenancies Act 1986 sets out a specific timeframe for this action. Landlords must send any bond payment to the Bond Centre within 23 working days after they receive the payment from the tenant. This is not a conditional obligation but a mandatory one, meaning landlords must fulfil it without exception.
Failure to lodge the bond within the statutory time limit is considered an unlawful act. The Tenancy Tribunal can award compensation or exemplary damages to the tenant if a landlord breaches this obligation. The Tribunal views this as a serious matter, emphasising that it is in the public interest for landlords to meet their obligations under the Act, and penalties serve as a deterrent against non-compliance.
Even if a landlord claims to have forgotten or attributes the failure to an administrative error, the Tribunal may infer intent, as landlords are expected to have systems in place to ensure compliance. The purpose of lodging the bond is to safeguard the tenant's funds and ensure proper management of tenancy bonds.
📋 Requirements
- A bond payment has been received by the landlord from the tenant.
- The landlord must send the bond payment to the Bond Centre.
- The bond must be lodged within 23 working days after the landlord receives the payment.
📝 Procedure
- Tenant pays the bond to the landlord.
- Landlord receives the bond payment.
- Landlord sends the bond payment to the Bond Centre.
- Bond Centre receives and holds the bond payment.
💡 Examples
- A tenant successfully claimed $200 in compensation because their landlord failed to lodge the bond with the Bond Centre within the required 23 working days.
- A landlord was ordered to pay $400 in exemplary damages after admitting they did not lodge the bond, citing an administrative error for the oversight.
- Despite a landlord being overseas, they were still found liable for not lodging the bond, as the obligation is mandatory and not conditional on their presence in the country.
- A tenant received a full refund of their bond, but still pursued a claim for exemplary damages because the landlord had not lodged the bond with the Bond Centre in a timely manner.
📚 Legal basis
- Residential Tenancies Act 1986
❓ Frequently asked questions
What is the Bond Centre?
The Bond Centre is the official body in New Zealand responsible for holding tenancy bonds. It acts as an independent third party to safeguard bond money, protecting both landlords and tenants.
How long does a landlord have to lodge the bond?
A landlord must send any bond payment to the Bond Centre within 23 working days after they receive the payment from the tenant. This timeframe is set by law.
What happens if a landlord doesn't lodge the bond?
If a landlord fails to lodge the bond within the required timeframe, it is considered an unlawful act. The Tenancy Tribunal can order the landlord to pay compensation or exemplary damages to the tenant.
Is bond lodgement optional for landlords?
No, bond lodgement is a mandatory obligation for landlords. It is not a conditional requirement and must be fulfilled to protect the tenant's interests and comply with the law.
Can I get my bond back if it wasn't lodged?
Yes, even if your bond was not lodged, you are entitled to its refund. However, you may also be able to claim compensation or exemplary damages from the landlord for their failure to lodge it, as this is a separate breach of their obligations.
What if the landlord claims they forgot to lodge the bond?
The Tenancy Tribunal views bond lodgement as a serious obligation. Even if a landlord claims to have simply forgotten or attributes it to an administrative error, the Tribunal may still find them liable and impose penalties, as landlords are expected to have systems in place to ensure compliance.