To sort out serious applicants, a NSW property manager asks everyone applying for a unit to pay a holding fee of one week's rent with their application. Is this permitted?
Correct Answer
C) No, a holding fee may only be taken once an application is approved
Under section 24 of the Residential Tenancies Act 2010, a holding fee of no more than one week's rent can only be requested from a prospective tenant once their application has been approved by the landlord. The fee must go towards rent if the tenant signs the agreement. Collecting it from every applicant before approval is not allowed.
Why This Is the Correct Answer
Holding fees are limited to approved applicants, so collecting them from everyone at application stage is unlawful.
Why the Other Options Are Wrong
Background Knowledge for Property Management
Exam Tip for Property Management
Common Mistakes to Avoid on Property Management Questions
More Property Management Questions
Under NSW tenancy law, which of the following lease terms would be considered invalid and unenforceable?
A NSW house being leased has a shared driveway, and the neighbour has a registered right of way to drive across it. The property manager plans to say nothing unless asked. What must the manager do?
A tenant has a 12-month fixed-term lease in NSW. With 80 days left, the landlord gives a valid 90-day notice on the proposed sale ground. The tenant finds another home and wants to leave in three weeks. What is her position?
In NSW, what is the minimum notice period a landlord must give before entering a rental property for a routine inspection?
In NSW, what is the minimum notice period a landlord must give a tenant for a rent increase during a periodic tenancy?
- → In NSW, how long does a landlord have to lodge a rental bond with NSW Fair Trading after receiving it from the tenant?
- → What is the maximum bond amount that can be charged for a residential tenancy in NSW?
- → A NSW tenant gives the property manager a completed pet application form for a small dog. The landlord is travelling and nobody responds for 25 days. What is the result?
- → A managing agent collects rent throughout March for a landlord who has given no special payment instructions. When must the agent pay the landlord?
- → Who is responsible for paying water usage charges in a standard residential tenancy in NSW?
- → In NSW, if a tenant disagrees with the condition report provided by the landlord, what action should they take?
- → A NSW landlord with a periodic tenancy plans significant renovations that require the property to be vacant. What is the minimum termination notice the agent must give the tenant?
- → A NSW tenant has a 6-month fixed-term lease. The landlord's daughter will move into the property when the term ends. What is the minimum notice for a termination at the end of the term?
- → A NSW landlord has just exchanged contracts to sell a periodic-let house, and the contract requires vacant possession. What is the minimum termination notice for this ground?
- → A NSW tenant on a periodic agreement has repeatedly breached the agreement by keeping an unapproved business on the premises. What is the minimum termination notice for breach?
People Also Study
Property Law & Legislation
110 questions
Agency Practice & Law
138 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions
Related Study Resources
Previous Question
The same two tenants renew their NSW lease for another 12 months. Six months later, a third person moves in as a new co-tenant. How many new condition reports are required?
Next Question
A dispute arises over bond refund where the landlord claims $800 for carpet cleaning and $1,200 for repainting due to 'normal wear and tear' after a 3-year tenancy. Under residential tenancy principles, what is the most likely outcome?