NCAT Hearing as Landlord - Agent Managed Property

aragornelessar on 20/11/2021 - 10:29

Hi all, with NCAT offices closed on the weekend I wanted to try to get some info/experience. Google seems to have a lot of stuff regarding the tenant's rights but not much on what the landlord (slash REA) does.

Long story short, former landlord in NSW. We sold the property that was managed by the REA throughout it's investment life. Five months after selling (six after the tenant vacated), we receive a notice of an NCAT hearing regarding the bond of the tenant. No idea what it's for, as the REA had managed everything (including bond).

Are the landlords meant to be appearing at this? I would have thought the REA would be because they were the ones managing the property. We've no idea what happened with the bond - I don't see it in our statements so it's not like we were paid the bond and ran off. Is the REA palming it off because they're no longer getting paid (and possibly looking for another payday)?

Thanks in advance!

Home & Garden

Comments

  • Mechz on 20/11/2021 - 10:43
    +1

    Did you try calling the REA?

    • aragornelessar on 20/11/2021 - 10:57

      Wanted to work out my rights before showing my hand to the REA. It's not like I trust them to do what's best for me.

  • AndyC1 on 20/11/2021 - 11:34
    +1

    On Monday call NCAT and talk to them about the situation as you have nothing to do with it, but if you do nothing you will get stung as the NCAT will side with the tenant as they were the only party to turn up. Make sure you document you conversations and followup with an email so you have a paper trail as you are dealing with government.

    • aragornelessar on 20/11/2021 - 12:55

      Good tips, thank you for pointing that out!

  • robbyjones on 20/11/2021 - 11:42
    +4

    No reason not to 'show your hand' to the REA, the bond is lodged with Rental Bonds through Service NSW. It could be that the REA wont release the bond and if not you need to find out why. It could also be that the REA didn't lodge the bond and if that is the case that is fraud/theft and the police will need to be involved. Regardless you need to provide proof that you had a REA acting on your behalf and all paperwork was (or should have been) lodged through them. Call the REA and ask why and what happened and on Monday call Fair Trading and explain and ask them what you should do.

    • aragornelessar on 20/11/2021 - 13:01

      Thanks for the info - as far as we're concerned the property is sorted and we got all monies we expected (rent less REA costs) when the tenant gave notice and vacated before we sold.

      If the REA has done a dodgy with the bond (which they collected as they organised the tenant and done all interactions with them), then I'm confused as to why this would be passed on to me. Surely it would come to light that they're the ones in the wrong and that's why I wanted to gather my rights before making a stand.

      • chillin222 on 20/11/2021 - 13:43
        +3

        The REA is your agent and acts on your behalf (clue - it's in the name), similar to an employee. When it comes to the tenant's rights, you are legally responsible, not the agent.

        If the tenant has any issues, you are the one on the hook. You are personally answerable to NCAT.

        Yes, you have a legal cause of action against the agent if they have done anything wrong. However that would be a totally separate proceeding between you and the agent, which the tenant would have no involvement in.

        If the agent has done something wrong, you must pay up, then try and recover the funds from them later.

  • funnysht on 20/11/2021 - 13:10
    +1

    havea read through your renal agreement you signed= most cases rea sorts general issues out but to go to NCAT etc usually you need ot pay them extra. better to just reach and agreement prior through alternative pathway before it

    • aragornelessar on 20/11/2021 - 13:35

      Fair call. When we signed up it stated it was free to have them attend 'Consumer, Trader and Tenancy Tribunals', but perhaps they're going to claim since the property is no longer managed by them that they're not going to do it for free. I've no access to the bond anyway, so I'm not sure how I'd even sort it out with the tenant outside of NCAT. If the REA withheld the bond for a reason, they didn't tell me about it!

  • mickyb80 on 20/11/2021 - 14:09
    +1
    1. REA should have lodged the bond with the DFT.
    2. Upon exit of the property (tenant) their should have been an inspection and any damage (non wear and tear) items listed for repair.
    3. a. in the even of any repairs being required, the tenant can op to pay for such (if applicable) or have it taken from the bond (up to the total bon value where required for the total cost of repairs.
    4. in the event of no repairs being required, then the bond refund is to be lodged IN FULL by the agent (or managing person) with the DFT and funds released.
      3.a. if there was a portion of the bond to be withheld, then this is to be agreed and noted on the refund lodgment with the remainder being paid out to the exiting tenant.
    5. The end.

    Thats about it.

    There is a 14 day requirement for this (from memory).

    I'd attempt to speak with the tenant directly prior to the NCAT hearing. NCAT is a PITA and depending on which Member you get, you could have a good and logical process or end up with a total halfwit that is a control freak and muppet like Ringrose (and I'm happy to call him out in a forum - he needs to resign). Ringrose has been on report from many people in the past. Total controlling, rude and aggressive **** that just wants to throw his position around and NOT follow the real guidelines. Fingers crossed for you that you get a good Member like that of Member Charles who is a gentleman and carries logic and principals. Anytime i hear of NCAT, I think of Ringrose and get fired up!!!

    • aragornelessar on 20/11/2021 - 16:47

      I've seen none of this process…

      • We hired REA, REA found tenant.
      • REA manages tenant, receives rent, transfers rent minus fess to our accounts.
      • Tenant gave notice to vacate.
      • REA started looking for new tenant after they left.
      • We sold property before they found new tenant.

      Although it seems I'm the responsible party being the landlord, I've not been involved in anything except approving maintenance of the property while it was tenanted and receiving the rental income less costs. Hopefully I get a helpful NCAT member

      • mickyb80 on 20/11/2021 - 23:57
        +1

        The REA should have lodged the bond on your behalf - yes, agree. However, as the landlord, you will need to take that up with the REA and ensure they did so.
        Yes, they should have released the bond on your behalf when the resident moved out. However, it 'appears' this has not happened. The circumstances now appear to be as if the REA either didn't lodge it, which can be checked against the address and resident with the Department of Fair Trade NSW, and/or if the resident received a copy of the bond lodgment. If this didn't happen, then one needs to simply ask, 'where is the money'?

        If you consider the REA close up shop and/or went under, then you are most likely liable. The agent should have sent the money to the DFT NSW, so before you go to NCAT, I'd be trying to get hold of both the REA and DFT NSW.

        Good Luck either way! Hopefully you get a considerate NCAT Member too…

        • aragornelessar on 21/11/2021 - 22:09

          Appreciate the info! We'll see where this goes, but I'm at least going to be in with a better understanding than going blind to the REA

  • garetz on 20/11/2021 - 16:09

    You as the landlord are responsible for returning the bond to the tenant, the rea is providing you a service which you pay for, in the end you are the responsible party. The tennant is not going to sue a real estate agent that you hired instead of you the landlord.

    • aragornelessar on 20/11/2021 - 16:39

      Since I don't even have access to the bond, I'll have to get the REA to do what they were being paid for then it seems. If the REA withheld the bond, they sure didn't even let me know that was done or why it was done.

      • garetz on 20/11/2021 - 17:14
        +1

        If the rea did something dodgy, i very much doubt they will help you at all, if you goto ncat and they find for the tenant then you are going to have to pay the bond out of your own pocket.

        You will then have to see what you can do to recover the bond from the rea.

        If the rea was within their rights to keep the bond then you should know this as they would have reported to you the circumstances involved and any costs associated with the bond being withheld.

        If i was you i would go through all the financials you have before contacting the rea, and determine what information you are missing.

        • aragornelessar on 20/11/2021 - 17:39

          Yeah I'm not seeing anything relating to a bond in the financials. It's pretty much rent paid less management expenses and repairs that I approved. If they withheld the bond to pay for the repairs, I've not seen a cent of it reimbursed to me.

          I can't see how NCAT wouldn't find for the tenant at the moment as I've completely no evidence otherwise since the REA was managing it all… Hopefully they come to the table, but I'm not holding my breath and looking at options (hence this thread). Thank you for the insight

          • mickyb80 on 21/11/2021 - 22:29

            @aragornelessar: no prob! good luck and hope it all works out.

            you might also want to check with NCAT before the hearing as well and see if they can issue an appearance notice to the REA as well. I personally feel they should be present and if what you are saying is accurate (no reason to not believe you), then throw the fu943rs under the bus! Dodgy REA's pi55 me off big time and dealing with NCAT is a headache!

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