A lessor can request that the lessee pay a security bond of up to three months’ rent as per the Retail and Commercial Leases Act 1995 (the Act).
If a bond is requested, the lessor or agent must:
- pay the amount of the security to the SASBC
- lodge the bond within:
- 28 days of receiving the payment if a registered agent; or
- 7 days of receiving the payment in any other case.
- use the Retail and Commercial Lodgement of Security Bond Form, signed by both parties, to lodge the funds.
- ensure the 'Details of Bond' section on page one of the above-mentioned form is completed in full. If this section is not completed in full, the SASBC will assume non-compliance with Section 19 (5) (b) (ii) of the Act and agencies/landlords could face penalties (maximum penalty: $1,500)
An application must be made to the SASBC for the refund of a security bond, and can be made by either one or both parties. If:
- both parties agree on who should receive the bond, they can lodge a Retail and Commercial Security Bond Refund Form with the SASBC.
- one party does not agree to the application for refund, that party may dispute the refund. If a security bond refund is disputed, the SASBC must refer the dispute to the Magistrates Court for determination.
Security bond lodgement and refund forms are available by clicking here.