conditional termination
📖 What is conditional termination? Meaning and definition
A conditional termination order is a decision made by the Tenancy Tribunal that allows a tenancy to continue, but only if the tenant meets certain conditions. If the tenant fails to meet these conditions, the tenancy can then be terminated. This type of order is often granted when a landlord applies to end a tenancy due to a breach of the tenancy agreement, such as not paying rent or water rates.
This order is typically considered when the breach committed by the tenant is something that can be fixed, or 'remedied'. Before a landlord can apply for such an order, they must usually have given the tenant a formal notice, often called a '14-day notice', requiring them to fix the breach within that timeframe. If the tenant does not remedy the breach within the specified period, the landlord can then take the matter to the Tenancy Tribunal.
The Tribunal will decide whether it is fair ('equitable') to terminate the tenancy given the nature and extent of the breach. If the tenant shows a willingness to remedy the breach, for example, by agreeing to a payment plan for arrears, the Tribunal may grant a conditional termination order. This gives the tenant a chance to resolve the issue and keep their home, while also protecting the landlord's interests by allowing for termination if the conditions are not met.
📋 Requirements
- The tenant has breached their obligations (e.g., non-payment of rent or water rates).
- The landlord served a notice (e.g., a 14-day notice) requiring the tenant to remedy the breach.
- The tenant failed to remedy the breach within the required period.
- The Tribunal considers it just and equitable to grant the order, often allowing the tenant to remedy the breach under specific conditions.
📝 Procedure
- Tenant breaches their obligations (e.g., fails to pay rent or water rates).
- Landlord serves a 14-day notice on the tenant, requiring them to remedy the breach.
- Tenant fails to remedy the breach within the 14-day period.
- Landlord applies to the Tenancy Tribunal for termination of the tenancy.
- The Tribunal hears the case and may grant a conditional termination order, setting out conditions for the tenant to meet (e.g., a payment schedule for arrears).
- If the tenant fails to meet the conditions, the tenancy can be terminated.
💡 Examples
- A tenant who has not paid water rates receives a 14-day notice from their landlord, fails to pay, and then the Tenancy Tribunal grants a conditional termination order allowing them to pay off the debt over time.
- A landlord applies for termination due to rent arrears, and the Tribunal issues a conditional termination order that allows the tenant to pay $100 per fortnight in addition to their regular rent until the arrears are cleared.
- Despite being notified by email and text, a tenant does not attend a hearing, and the Tribunal grants a conditional termination order for unpaid water rates after the landlord provided evidence of serving 14-day notices.
- A tenant wants to repay a debt to avoid immediate termination, and the Tribunal grants a conditional termination order to facilitate this repayment.
📚 Legal basis
- Residential Tenancies Act 1986
❓ Frequently asked questions
What does 'conditional termination' mean for my tenancy?
It means your tenancy will end unless you meet specific conditions set by the Tenancy Tribunal, usually involving fixing a breach like paying outstanding rent or water rates by a certain date or through a payment plan.
Why would a Tenancy Tribunal make a conditional termination order?
The Tribunal makes this order when a tenant has breached their obligations, but the breach is capable of being fixed. It aims to be fair by giving the tenant a chance to remedy the problem and keep their tenancy, while also ensuring the landlord's rights are protected.
What kind of breaches can lead to a conditional termination order?
Common breaches include failing to pay rent on time, not paying water rates, or other obligations that can be remedied. The landlord must usually have given you a 14-day notice to fix the breach first.
What happens if I don't meet the conditions of the order?
If you fail to meet the conditions set out in the conditional termination order, the tenancy can then be terminated. This means you would likely have to vacate the property.
Can I get a conditional termination order if I have a history of not paying rent?
Yes, even with a history of arrears, the Tribunal may still grant a conditional termination order if the landlord seeks it and it is considered reasonable, often with a structured payment plan to clear the debt.
Do I have to attend the Tenancy Tribunal hearing if my landlord applies for this order?
It is strongly recommended to attend. Hearings can proceed in your absence if you've been notified, and attending allows you to present your side and potentially negotiate terms for a conditional order.