conditional termination orders
📖 What is conditional termination orders? Meaning and definition
In New Zealand tenancy law, a conditional termination order is a specific type of ruling made by the Tenancy Tribunal. It is typically issued when a landlord applies to end a tenancy due to significant rent arrears. The Tribunal is required to 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.
This order allows a tenancy to continue, provided the tenant complies with specific conditions set by the Tribunal, most commonly a payment plan to clear the outstanding rent debt. The Tribunal will grant such an order if it is satisfied that the tenant is likely to pay the debt within the specified period and is unlikely to commit any further relevant breaches of the tenancy agreement.
If the tenant fully complies with all the conditions in the order, the conditional termination order will lapse, meaning the tenancy continues without further threat of termination based on that specific application. However, if the tenant breaches any part of the order, the landlord may then enforce a possession order, which allows them to regain possession of the property. This possession order can typically be enforced for 90 days from the date of the first breach. This mechanism provides a pathway for tenants to avoid eviction by taking responsibility for their arrears and adhering to a repayment schedule.
📋 Requirements
- Rent must be at least 21 days in arrears on the date the application was filed.
- The Tenancy Tribunal must be satisfied that the tenant will pay the debt within the period specified in the order.
- The Tenancy Tribunal must be satisfied that the tenant is unlikely to commit any further relevant breach.
📝 Procedure
- The landlord applies to the Tenancy Tribunal for termination of the tenancy and rent arrears.
- A hearing is held, which both parties may attend.
- If rent is at least 21 days in arrears, the Tribunal must consider making either a final or a conditional termination order.
- The tenant may propose a repayment plan to avoid immediate termination.
- If the Tribunal is satisfied the tenant will pay the debt and not commit further breaches, a conditional termination order is granted.
- The tenant must then comply with the payment plan and other conditions specified in the order.
💡 Examples
- A tenant who owes $8,350 in rent arrears agrees to a repayment plan of $1,000 per week, alongside their regular rent, to avoid immediate eviction through a conditional termination order.
- A landlord applies to terminate a tenancy due to rent arrears, but the tenant successfully argues for a conditional termination order by demonstrating a new, stable income and proposing a clear payment schedule.
- A tenant who broke two windows agrees to repay the cost of glazing as part of a conditional termination order, alongside clearing rent arrears, to prevent the tenancy from ending.
- The Tenancy Tribunal issues a conditional termination order, allowing a tenant to remain in their home as long as they pay their weekly rent and an additional amount towards their significant rent debt.
📚 Legal basis
- Residential Tenancies Act 1986
❓ Frequently asked questions
What happens if I don't follow the conditions of the order?
If you breach the conditional termination order, for example by missing a payment, the landlord may then enforce a possession order. This means you could be evicted from the property.
How long do I have to fix the breach?
The Tenancy Tribunal will specify a period in the order for you to pay the debt. This period will be determined based on the circumstances of your case and the repayment plan agreed upon or ordered.
Can a conditional termination order be made for reasons other than rent arrears?
The case excerpts specifically mention that the Tribunal must make either a final or conditional termination order when rent is at least 21 days in arrears. The examples provided primarily relate to rent arrears and other associated debts like property damage.
What does it mean if the conditional termination order 'lapses'?
If you fully comply with all the conditions set out in the order, the conditional termination order will lapse. This means the threat of termination based on that specific application is removed, and your tenancy continues as normal.
How long can a possession order be enforced after a breach?
If you breach the conditional termination order, the possession order may be enforced for 90 days from the date of the first breach. This gives the landlord a window to act on the breach.
Where can I find more information about rehearings and appeals?
You can visit justice.govt.nz/tribunals/tenancy/rehearings-appeals for more information on rehearings and appeals related to Tenancy Tribunal decisions.