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Termination for non-payment of rent

Chairperson's Directions CTTT CD2011-2

Procedures applying to applications for termination for non-payment of rent under the Residential Tenancies Act 2010.  These directions have effect from 15 March 2011.

1.0 Introdution

1.1  These directions are issued pursuant to section 12 of the Consumer, Trader and Tenancy Tribunal Act 2001 and are intended to give some guidance to the parties as to the management of applications for termination of residential tenancy agreements where the landlord gives the tenant a non-payment termination notice under section 88 of the Residential Tenancies Act 2010 (RTA 2010).

1.2  Termination applications will usually be listed in a group list along with a number of other applications.  It is intended that a majority of matters will be heard and determined on the first listing.  Circumstances where a matter may not be heard on the first listing include:

  • one or both parties have requested and been granted an adjournment;
  • one or both parties request an adjournment to bring witnesses; and/or
  • the likely time to determine the matter exceeds the time available.

1.3  It is assumed for the purposes of this Direction that the landlord has complied with the RTA 2010 requirements in respect of the notice of termination and service.

2.0 Application for termination, non-payment of rent, no reference in application to s89(5) ground

2.1  At the hearing the Member will determine whether the grounds have been established before making a termination order or specific performance order.  Under the RTA 2010 the Tribunal cannot make a termination order in the following circumstances:

  • if the tenant has paid all the rent owing as at the date of the hearing; or
  • if the tenant has entered into and fully complied with a repayment plan agreed with the landlord as at the date of hearing.

2.2  Any application for a termination order in these circumstances will be dismissed.  The Tribunal may, if requested, make specific performance orders.  No right to re-list the application in order to determine whether the tenancy should be terminated can be given.

2.3  Where an application for a termination order is made and:

  • the tenant is still in arrears at the date of the hearing; and
  • the tenant has failed to comply with an agreed repayment plan

the Tribunal may make the following orders as appropriate:

  • a termination order;
  • an order for specific performance; and/or
  • a money order.

2.4  If a specific performance order is made, the Tribunal may also grant the landlord the right to have the matter re-listed if the tenant fails to comply with that order in order to determine whether the tenancy should be terminated.  A re-listing will only be granted where it appears on the evidence presented that the Tribunal could make a termination order at the next hearing.

2.5  If a re-listing is granted, at the next hearing the Tribunal cannot make a termination order:

  • if the tenant has paid all the rent owing as at the date of the hearing; or
  • if the tenant has entered into and fully complied with a repayment plan agreed with the landlord as at the date of the hearing.

3.0 Application for termination, non-payment of rent, including ground that tenant has frequently failed to pay rent owing for the residential premises, s89(5) ground

3.1  Where an application to the Tribunal is made based on a non-payment termination notice and on the grounds that the tenant has frequently failed to pay rent owing for the residential premises on or before the date set out in the residential tenancy agreement, the Tribunal may make the following orders as appropriate:

  • a termination order;
  • an order for specific performance; and/or
  • a money order.

3.2  If a specific performance order is made, the Tribunal may also grant the landlord the right to have the matter re-listed if the tenant fails to comply with that order in order to determine whether the tenancy should be terminated.   A re-listing will only be granted where it appears on the evidence presented that the Tribunal could make a termination order at the next hearing.

Kay Ransome
Chairperson
14 March 2011

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