conditional termination order
📖 What is conditional termination order? Meaning and definition
A conditional termination order is a type of order the Tenancy Tribunal can make, particularly when a tenant has significant rent arrears. Instead of immediately ending the tenancy, this order gives the tenant an opportunity to rectify the breach, usually by paying the outstanding rent within a set timeframe and not committing further breaches. If the tenant fully complies with the conditions specified in the order, the conditional termination order will lapse, meaning the tenancy continues.
However, if the tenant fails to meet any of the conditions, such as not making the agreed payments or committing another relevant breach, the conditional termination order can then be enforced. This enforcement typically involves a possession order, which allows the landlord to regain possession of the property. The ability to enforce the possession order is usually valid for a specific period, such as 90 days from the first breach.
The Tribunal must consider making either a final or a conditional termination order when rent is at least 21 days in arrears on the date the application was filed. The decision to grant a conditional order often depends on whether the Tribunal is satisfied that the tenant will pay the debt within the specified period and is unlikely to commit any further relevant breaches. This approach aims to provide a pathway for tenants to retain their tenancy while ensuring landlords receive owed rent.
📋 Requirements
- Rent is at least 21 days in arrears on the date the application was filed.
- The Tenancy Tribunal is satisfied the tenant will pay the debt within the period specified in the order.
- The Tenancy Tribunal is satisfied the tenant is unlikely to commit any further relevant breach.
📝 Procedure
- Landlord applies to the Tenancy Tribunal for termination of tenancy and rent arrears.
- A hearing is held, which the tenant may attend.
- If rent is 21 days in arrears, the Tribunal must consider making a final or conditional termination order.
- The Tribunal assesses if the tenant is likely to pay the debt and avoid future breaches.
- If satisfied, the Tribunal grants a conditional termination order with specific payment conditions.
- If the tenant complies, the order lapses; if not, the possession order may be enforced for 90 days from the first breach.
💡 Examples
- A tenant owing $8,350 in rent arrears proposes a repayment plan, and the Tribunal grants a conditional termination order requiring weekly payments of $1,000.
- A tenant with significant rent arrears commits to clearing the debt, and the Tribunal sets a final date for compliance, subject to the conditional terms being met.
- A tenant wants to repay their debt to avoid immediate termination, and the Tribunal issues a conditional termination order after being satisfied they will pay and not breach again.
📚 Legal basis
- Residential Tenancies Act 1986
❓ Frequently asked questions
What happens if I comply with a conditional termination order?
If you fully comply with all the conditions set out in the order, such as making all required payments on time, the conditional termination order will lapse, and your tenancy will continue as normal.
What if I can't meet the conditions of the order?
If you breach any of the conditions, for example, by missing a payment, the possession order associated with the conditional termination order may be enforced by the landlord. This means the landlord can proceed to end your tenancy and regain possession of the property.
How long does the landlord have to enforce the order if I breach it?
If you breach the conditional termination order, the possession order may typically be enforced for a period of 90 days from the date of the first breach.
When does the Tenancy Tribunal consider making a conditional termination order?
The Tribunal must consider making either a final or a conditional termination order when the rent is at least 21 days in arrears on the date the application was filed by the landlord.
Can I get a conditional termination order if I have other breaches besides rent arrears?
The excerpts primarily discuss conditional termination orders in the context of significant rent arrears. The Tribunal will assess if you are unlikely to commit any further 'relevant breach', suggesting other breaches could be a factor in their decision.