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.