CONSUMING MATTERS

June 2003

PRODUCED BY

THE CONSUMER AND TENANT RESOURCE CENTRE OUTER EAST

FUNDED BY THE CONSUMER AND BUSINESS AFFAIRS VICTORIA

ALERT!

The Residential Tenancies Act has a number of changes that will come into operation on the 1/7/03. If you are a private landlord, information will be sent to you by Consumer Affairs. Landlords that use an Estate Agent will have the information sent to the Estate Agent. If you do not receive this information by mid July contact the Consumer and Tenant Resource Centre for assistance.

CONDITION REPORTS

The Centre has had numerous calls from tenants complaining about landlords and real estate agents coming into their rented home without giving the correct notice. Selling agents, in particular, appear to be ignorant of the rights of tenants and expect entry at minimal notice. The Residential Tenancies Act 1997 (RTA) states that tenants have a right to quiet enjoyment of their home. Landlords, agents or tradespeople have some rights to enter the property but must comply with certain requirements set down in legislation. If they do not comply, tenants do not have to allow them entry.
The landlord or agent can only enter the property when

• A Notice to Vacate or a Notice of Intention to Vacate has been given and will expire in less than 14 days, and they want to show the property to prospective tenants
• The premises are to be sold or used as security for a loan and they want to show a prospective buyer or lender through the premises
• They have to enter to carry out a duty under the RTA, the tenancy agreement or other law
• They are having the property valued
• They have reasonable grounds to believe a tenant has failed to comply with a duty under the tenancy agreement or RTA
• They want to inspect the premises and an inspection has not been made within the last 6 months

If the landlord or agent wants to enter the rented home, they must

• Give the tenant at least 24 hours written notice of their intention to visit, stating the reason and the time of the visit
• Deliver the notice by post or in person between 8am & 6pm
• Only visit between 8am & 6pm
• Not stay longer than is necessary

If correct notice is given the tenant must permit entry and the landlord may enter whether or not the tenant consents or is in attendance.
If the landlord or agent does not comply with notice requirements, or has been making frequent or harassing visits, a tenant may apply to the Residential Tenancies List at the Victorian Civil and Administrative Tribunal for a restraining order. This order can prohibit or restrict the landlord or agent from entering the premises or contacting the tenant and can be enforced by the police. Tenants can claim compensation from the landlord if their right to quiet enjoyment is breached.

ETHANOL BLENDED PETROL

New laws came into operation on 1/5/03 in Victoria which made it mandatory to display labels on pumps dispensing petrol with ethanol.
To assist consumers and retailers understand the new laws, Consumer Affairs have produced two information sheets on Ethanol labelling. Additionally, Choice magazine has done an article "Ethanol in Petrol - Should you Care?" which highlights the differences from state to state and industry to government. To receive copies of this information contact the Centre on 9761 0288.

ONLINE ALTERNATIVE DISPUTE RESOLUTION

Consumer Affairs is developing an Online Alternative Dispute Resolution (ADR) self-help website. The website will provide information about ADR processes, techniques and basic advice on communicating with your landlord or estate agent and how to write a letter. The aim is to provide enough information to enable users to solve their own dispute, or a least know who to turn to if they can't.

One of the features of the site will be an interactive application that will allow users to walk through given scenarios, receiving advice about the law and tips on resolving their dispute along the way. Initially the site will only cover a small number of scenarios, such as Repairs, Rental increases, Evictions, Quiet enjoyment and Bonds.
The backbone of the scenarios will be interactive workflows and we are interested in feed back on whether tenants would use this site.

60 DAY NTV - PROPERTY HAS BEEN SOLD

It can be a very unsettling and stressful time when selling a house, both for the tenant and the vendor/landlord. The vendor being anxious that settlement will go through without any hitches, while the tenant is anxious to find suitable alternative accommodation within the 60 days.

A 60 day Notice to Vacate (NTV) cannot be served on a tenant unless it either co-incides with the end of a fixed term tenancy or later. If settlement is arranged prior to the end of the tenant's fixed term tenancy then the property must not be sold with vacant possession.

It is important to note that a NTV is NOT an order to vacate. Although most tenants will do their best to comply with the NTV and will be out by the termination date, setting the settlement date of the sale too close to this date is unwise. This does not allow for the unexpected and adds unnecessary problems to what can already be a stressful situation. Take for instance the tenant who secured public housing but could not move in until the day after the termination date which was the same date as settlement.

When the tenant advised the Estate Agent of their moving date, threats were made to sue the tenant for delaying settlement! This is harassment and a breach of the Fair Trading Act. To add further stress to the situation, the tenant's removalist rang on the morning of the job to advise they could not make it at 8 a.m. as arranged but closer to 1 p.m. .

Tenants should note that a NTV is not an Order to Vacate and if things don't go to plan they should not be pressured into being homeless just because the Estate Agent/vendor/landlord hasn't allowed for contingencies. Estate Agents should note that the settlement date of the sale should be at least 2-3 weeks after the termination date of the NTV. At the time of serving the NTV on the tenant, the Estate Agent should also apply to VCAT for an Order of Possession. This protects the vendor/landlord if the tenant hasn't been able to move out by the termination date. A hearing date would be set for a couple of days after the termination date and an Order of Possession would be granted, conditional that the correct notice had been served. A warrant could then be purchased and executed within 14 days of the hearing in most cases. This ensures vacant possession 2-3 weeks after the termination date. The process works and if followed, there will be no need to pressure tenants to move out before they have to and settlement will be assured of going through without any problems.

CHECK IT OUT!
home.vicnet.net.au/~catrcoe

Our Website has been updated! Thanks to the fantastic work of Robert Lewis from Cold Coffee, (www.coldcoffee.com.au) 321 Exhibition Street, Melbourne, we now have a website that is pleasing on the eye and easy to use. All our instructions were carried out in a prompt and professional manner - what a great service!

It is a pleasure for me to write about a positive experience with a trader rather than constantly warning of the things that can go wrong. Thanks Robert! - Denise Budge (Co-ordinator)