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Property ManagementRental ApplicationsNSWMEDIUM

A leasing agent asks every rental applicant to pay a small fee to cover a background and credit check. Which NSW law does this breach?

Correct Answer

B) The Residential Tenancies Act 2010, which limits what applicants can be charged

The Fair Trading Commissioner's guidance states that agents, landlords and third parties must not require or receive fees from a prospective tenant in connection with an application, apart from costs allowed under s 23 of the Residential Tenancies Act 2010. It specifically says charging for a credit or background check breaches that Act.

Answer Options
A
The Property and Stock Agents Act 2002, which caps agents' leasing fees
B
The Residential Tenancies Act 2010, which limits what applicants can be charged
C
The Privacy Act 1988, because credit checks always require written consent
D
No law, if the fee is refunded to applicants who are unsuccessful

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