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Hi,
We have added an item to our Selling and Auction Agency Authorities (Residential and Commercial) in respect of the new Foreign Resident Capital Gains withholding provisions (Taxation Administration Act 1953 (Cth)).
Where a property is valued at $2,000,000 or more, this item will alert the vendor to the requirements of the new capital gains withholding provisions and how it may affect them. It will also provide them with information they may require to prepare for the sale of their property.
The item has been added to the authority to help protect you the agent in respect of potential capital gains withholding issues. You should not be required to act further on the information provided by the vendor, although such information may be of value to the vendor's conveyancing agent.
Forms affected are:
- AUVICRECM001 Exclusive Selling Agency Authority - Commercial
- AUVICRECM002 Exclusive Auction Agency Authority - Commercial
- AUVICRECM003 General Selling Agency Authority - Commercial
- AUVICRECM004 Exclusive Selling Agency Authority - Business Broking
- AUVICRECM005 General Selling Agency Authority - Business Broking
- AUVICREPS001 Exclusive Selling Agency Authority - Residential
- AUVICREPS002 Exclusive Auction Agency Authority - Residential
- AUVICREPS003 General Selling Agency Authority - Residential
- AUVICREPS011 Exclusive Selling Agency Authority - Residential (No Rebate Statement)
- AUVICREPS012 Buyers Agency Authority - Residential
1. Airbnb issues are currently a hot topic within the industry after a recent tribunal hearing and subsequent Supreme Court decision in Victoria.
Because the tenant, under a residential tenancy agreement, sub-let the entire premises through an Airbnb rental website, the landlord served a termination notice on the tenant.
Tribunal ruled in favour of the tenant, but subsequently the Supreme Court ruled in favour of the Landlord based on the fact that the Airbnb
agreement between the tenant and the Airbnb guests was for occupation of the whole of the premises. This may indicate a tenant occupying premises under a residential tenancy agreement in Victoria may be able to license a portion of the premises under an Airbnb agreement without the Landlord's permission.
As a result we at ADL have put our Tenancy Agreements, Australia wide, under the microscope to ensure they keep landlords protected against a tenant sub-letting and/or licensing all or part of a rental premises without the Landlord's permission.
We believe the standard residential tenancy agreement (Schedule 1 - Residential Tenancies Regulations 2008) does NOT adequately cover the Airbnb situation. As a result, to better protect the Landlord against unauthorised sub-letting or licensing in respect of Airbnb or similar online service, we have added an Additional Term to the ADL versions of the tenancy agreement. The new Additional Term '17.4' reads as follows:
The Tenant may not grant other person's the right to occupy or use the whole or part of the premises for the Tenant's commercial gain, whether by written or verbal agreement with the other person/s, without the Landlord's consent having been first obtained. The Landlord must act reasonably.
Having said this, it would still be the
Agent's responsibility to take appropriate action where the Agent becomes aware of unauthorised sub-letting or licensing by a tenant of one of their managed properties.
Forms affected are:
- AUVICREPM013 Residential Tenancy Agreement
- AUVICREPM028 Residential Tenancy Agreement (Casual Letting)
2. We have made some further changes to the ADL versions of the Residential Tenancy Agreements as a result of changes to government regulations and also in respect of valuable feedback from clients. Changes are as follows:
Electronic Service
Term 4A has been added as per regulations to allow provision of documents by electronic means. In line with this change we have removed the previous additional term 'Provision of Documents'.
Repairs/Urgent Repairs
We have updated the Urgent Repairs term to indicate whether the agent is to be contacted in respect of repairs to the premises and to better explain the processes required by the tenant to organise urgent repairs.
Other
A note in regard to additional terms has also been updated in accordance with the Regulations.
Click here to view full forms change history
3. Updating ADLForms
ADLForms should have automatically updated to allow access to the new forms and the latest version of the software (v9.3.6) when you first opened ADLForms today. If this has not occurred then:
- Click the 'Update' button from the main menu of the program. Please allow a few minutes for the forms and/or program to download and install.
- If this fails to update your forms then:
- Select Tools -> 'Re-initialise ADLForms’ from within the Main Menu of the ADLForms program. This will close the program.
- Restart ADLForms and click the 'Update' button.
- If you still do not have the updated forms click here to download and re-install ADLForms.
- If all the above do not result in a successful forms and program update please contact our tech support team for assistance.
Click on the link below to:
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