Monday, August 15, 2011

Allowable Grounds for Termination of a Tenancy

Following is an exert from the Victoria Residential Tenancies Act and applies to this state.  View the complete document for more information regarding tenancies.

When can a tenancy agreement be terminated?
 
Sect. 216  Termination of tenancy agreement
A tenancy does not automatically end at the expiration of the fixed term tenancy agreement. It only ends when one party gives notice to the other of the termination in accordance with the provisions of the Act or when determined by VCAT.

Sect. 217 Termination by agreement
A tenancy agreement may be terminated by agreement of both the landlord and tenant.

Sect. 218 Terminate by consent
A tenancy agreement terminates if the tenant vacates the rented premises with the consent of the landlord. The consent, once given, is irrevocable.

Sect. 219 Termination after notice to vacate
A tenancy agreement terminates when one party gives notice of termination to the other party in accordance with the provisions of the legislation or when it has been terminated as a result of an Order from VCAT.

Sect. 220 Termination by abandonment
A tenancy agreement terminates if the tenant abandons the rented premises.
 
Sect. 221 Termination where premises are sub-let
If the tenant is not in possession of the rented premises because they have been sub-let and either the landlord or tenant has given notice of termination, once the notice has expired the tenancy terminates.

Sect. 222 Termination where landlord not owner of premises
If a person purports to be the owner of the rented premises when if fact they are not, the tenancy terminates when the real owner gives the tenant notice of termination.

Sect. 223 Termination by mortgagee
If a mortgagee in respect of rented premises under a mortgage entered into before the tenancy agreement was entered into becomes entitled to possession of, or to exercise a power of sale in respect of the premises under a mortgage, the mortgagee may give the tenant a notice to vacate the premises.

Sect. 224 Termination by merger
If the tenant purchases the rented premises from the landlord, the tenancy is terminated at the time of settlement.

Sect. 225 Termination by disclaimer
A tenancy agreement may terminate by disclaimer (for example, on repudiation of the agreement by the tenant accepted by the landlord).

Sect. 226 Termination by tenant before possession
A tenancy agreement terminates if the tenant has not entered into possession of the rented premises and has given a notice of termination of the tenancy agreement to the landlord on the ground that the premises—
(a) are not in good repair; or
(b) are unfit for human habitation; or
(c) are destroyed totally or to such an extent as to be rendered unsafe; or
(d) are not vacant; or
(e) are not legally available for use as a residence; or
(f) are for any other reason unavailable for occupation.
 
Sect. 227 Termination by landlord before possession
A tenancy agreement terminates if the tenant has not entered into possession of the rented premises and the landlord has given a notice of termination of the tenancy agreement to the tenant on the ground that the premises—
(a) are unfit for human habitation; or
(b) are destroyed totally or to such an extent as to be rendered unsafe.
 
Sect. 228 Termination after death of sole tenant
In general terms, the tenancy agreement terminates upon the death of the tenant when 28 day’s notice of termination has been given by the legal personal representative or next of kin of the tenant. However, if there is more than one tenant under the tenancy agreement, the tenancy does not terminate.

Comment: The most common termination of a tenancy is as a result of Section 216 when one party gives notice of termination to the other in accordance with the provisions of the legislation (e.g. a landlord gives notice to a tenant because the rent is in arrears for more than 14 days or the property has been sold) or the notice has been served and the tenant has not vacated, resulting in the landlord obtaining an Oder for Possession from VCAT.

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