There are two ways the property you're renting can be repossessed by:

• the mortgagee such as a bank or other financial lender, or
• a person with superior title such as a Government authority.

An application to the Supreme Court must be made for possession of the rental property.

During that process there are two notices a tenant may receive:

• A notice of application to repossess
• A notice of application to vacate.

Notice of application to repossess 

The mortgagee will usually give the tenant a Notice to Tenant of Proposed Recovery of Premises by Person with Superior Title (Form 17) as a part of their repossession.

The Supreme Court usually requires the mortgagee to provide the form to tenants, but this doesn’t always happen. The landlord may tell you about the repossession without receiving the form.

Staying at the home 

There is no change to the tenancy agreement and no need for the tenant to move out. The Supreme Court can take a long time to order the repossession.

Leaving the home 

The tenant can end the tenancy before the new owner takes over:

• 21 days’ notice if it’s a periodic tenancy
• by negotiation with landlord for a fixed-term tenancy

The tenant can’t break a fixed-term lease without the landlord’s written agreement.

Notice to vacate 

A court order will end the tenancy agreement. The mortgagee must give the tenant at least 30 days’ notice using the Notice to vacate from Mortgagee to Tenant (Form 14).

Rent-free period 

The tenant can stay in the property for 30 days rent free from the date they received the Form 14 notice.

If the tenant has paid rent in advance, they are entitled to a refund. They can contact the representative indicated on the notice to arrange for a refund.

Staying at the home 

Any new agreements would come into effect after the 30 days rent-free period has passed.

A tenant can apply to the court to stay in the property and continue renting from the new owner. The Court will set conditions for this, and it will start when the new owner takes possession.

A tenant can also contact the representative indicated on the notice form to ask about starting a new rental agreement.

Showing the home to potential buyers 

The mortgagee (or representative) may show the premises to buyers.

The tenant must:

• be given reasonable notice and
• agree to the date and time of the showing.

See entry rights and privacy page.

Getting the bond back 

When the tenancy ends, the tenant can request their bond back from:

• The landlord before the home is repossessed.
• The representative on the Form 14 after the mortgagee has taken over the home.  The tenant can do this while they are still living at the property. The Bonds Administration will need evidence to show the person has the legal authority to release the bond.

Need help or advice? 

If you have a question or need some support, call Consumer Protection on 1300 30 40 54.