termination order
📖 What is termination order? Meaning and definition
A termination order is issued by the Tenancy Tribunal in New Zealand, and it dictates whether a tenancy will end. There are two main types: final and conditional. A final termination order ends the tenancy outright, while a conditional termination order gives the tenant an opportunity to fix a problem to prevent the tenancy from ending.
Conditional termination orders are often made when a tenant has breached their tenancy agreement, such as falling behind on rent or not paying water rates. The Tribunal may grant a conditional order if it believes the tenant can remedy the breach, providing a chance to avoid immediate termination. This type of order will lapse, meaning it becomes void, if the tenant fully complies with its conditions.
However, if the tenant breaches a conditional termination order, the landlord may be able to enforce a possession order for 90 days from the first breach, meaning they can take back possession of the property. The Residential Tenancies Act 1986 outlines specific situations where the Tribunal must make either a final or conditional termination order, for example, when rent is at least 21 days in arrears when the application was filed.
The Tribunal considers factors like whether it would be unfair to refuse to terminate the tenancy due to the nature or extent of the breach, and if the breach is capable of being fixed. Landlords must typically serve a notice requiring the tenant to remedy the breach within at least 14 days before applying for termination for a remediable breach.
📋 Requirements
- Rent is at least 21 days in arrears on the date the application was filed.
- The tenant has breached their obligations, such as failing to pay water usage.
- The landlord has served a notice requiring the tenant to remedy the breach within at least 14 days, and the tenant has failed to do so.
- Due to the nature or extent of the breach, it would be inequitable to refuse to terminate the tenancy.
📝 Procedure
- Landlord files an application with the Tenancy Tribunal for termination of the tenancy and/or rent arrears.
- Tenant is notified of the hearing, potentially by email and text.
- A hearing is held, which may proceed even if the tenant is absent after being notified.
- The Tribunal assesses whether a final or conditional termination order should be made based on the evidence and relevant sections of the Residential Tenancies Act 1986.
- If a conditional termination order is granted, the tenant is given specific conditions to meet (e.g., repaying debt within a specified period).
- If the tenant fully complies with the conditional order, it lapses; if breached, a possession order may be enforced for 90 days from the first breach.
💡 Examples
- A tenant who is 21 days behind on rent might be granted a conditional termination order, allowing them to keep their tenancy if they pay back the arrears and continue to pay rent on time.
- A landlord applies for a conditional termination order because the tenant has not paid water rates despite receiving two 14-day notices to remedy the breach.
- A tenant successfully argues for a conditional termination order with a repayment plan for rent arrears, hoping to avoid immediate termination of their tenancy.
- A conditional termination order is made by consent of both parties, giving the tenant a chance to get assistance from Work and Income New Zealand to pay off debt.
📚 Legal basis
- Residential Tenancies Act 1986
❓ Frequently asked questions
What is the difference between a final and a conditional termination order?
A final termination order ends the tenancy immediately. A conditional termination order gives the tenant a chance to fix a problem (like unpaid rent) to prevent the tenancy from ending, and it lapses if the conditions are met.
When must the Tenancy Tribunal make a termination order?
The Tribunal must make either a final or conditional termination order when rent is at least 21 days in arrears on the date the application was filed, as per section 55(1)(a) and (1A) of the Residential Tenancies Act 1986.
What happens if I comply with a conditional termination order?
If you fully comply with a conditional termination order, the order will lapse, meaning it becomes void and the tenancy continues.
What happens if I breach a conditional termination order?
If you breach a conditional termination order, a possession order may be enforced for 90 days from the first breach, which means the landlord can take back possession of the property.
Can a conditional termination order be made by agreement?
Yes, a conditional termination order can be made by consent of both parties, as seen in cases where both the landlord and tenant agree to the terms.
Do I get a chance to fix a breach before a termination order is made?
If the breach is capable of being fixed, the landlord must first serve you a notice requiring you to remedy the breach within at least 14 days before applying for termination. If you fail to do so, the Tribunal may then consider a termination order.