Hi I AM CURRENTLY COMING UP FOR THE SECOND YEAR OF A LEASE…

Question

Answer 1

Solicitor: FLAandNYLawyer, Attorney replied 14 years ago

Hello,

In the absence of a provision in your lease to the contrary, you would be subject to damages for the early termination of your lease but not necessarily the full balance of the payments.

Here is why.

A landlord has a duty to mitigate his damages resulting from early termination of a lease. This means that the landlord must use reasonable efforts to relet the property. In the event he is not able to relet the property, you will remain liable for the total amount of the lease payments. In the event the landlord is able to mitigate his damages and relet the property, you will be liable only for any shortfall between the new tenants lease and your lease.

I hope that I have fully answered your question and the answer was helpful to you.

Answer 2

Solicitor: FLAandNYLawyer, Attorney replied 14 years ago

If you file for bankruptcy, your liability under the lease would typically be discharged. You would typically not be entitled to a refund of the bond.

Answer 3

Solicitor: FLAandNYLawyer, Attorney replied 14 years ago

Hello,

I cannot be certain.

Answer 4

Solicitor: Maurice, Lawyer replied 14 years ago

Maurice, Lawyer

Category: Australia Law

Satisfied Customers: 2,764

Experience: Lawyer (Juris Doctor, MBA IntBus) with 25 years Australian Business Experience at Your Service

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HelloCustomerbr />
I wish to clarify some items for you.

First of all, if you were not to pay your rent as of today than at some point the Landlord (or their Agent) will issue a notice of termination to you requiring that you pay the rent within 14 days or provide vacant possession of the property. (This is all covered under section 57 of the Residential Tenancies Act 1987.

Secondly, even if you do declare yourself bankrupt the liability under the lease will not be extinguished. Your Landlord would first of all try and mitigate (reduce) their loss and yours by renting out the property to another Tenant and then they may pursue your estate (in the event of bankruptcy) for their loss if the Bond they hold does not cover their loss. I would strongly urge you not consider bankruptcy until at least you have considered your alternate options by visiting the web site of the Insolvency Trustee of Australia (ITSA) at www.itsa.gov.au

Finally, I can only suggest that if you are unhappy with the property that you seek another but give notice to the Landlord now who can find a replacement Tenant for you and avoid all the financial aggravation that could be caused for you for many years to come if you were to consider going down the bankruptcy path.

I trust this information has assisted and you will kindly accept my answer, feel free to ask any follow up questions.

Regards

Maurice

Hi I AM CURRENTLY COMING UP FOR THE SECOND YEAR OF A LEASE…

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