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Property ManagementLease AgreementsNSWMEDIUM

A fixed-term lease in NSW expires and the tenant continues to pay rent which the landlord accepts. What type of tenancy arrangement now exists?

Correct Answer

D) The tenancy continues as a periodic agreement on the same terms as the lease

When a fixed-term lease expires and the tenant remains with the landlord's acceptance (evidenced by continuing to accept rent), a periodic tenancy is automatically created under NSW residential tenancy law. This continues on the same terms as the original lease but becomes ongoing rather than fixed-term.

Answer Options
A
The fixed term automatically renews for another term of the same length
B
The tenant becomes a tenant at will who can be removed on a day's notice
C
The occupant holds only a licence, so tenancy laws stop applying until a new lease is signed
D
The tenancy continues as a periodic agreement on the same terms as the lease

Why This Is the Correct Answer

Under the Residential Tenancies Act 2010 (NSW), when a fixed term ends and the tenant stays on without a new agreement, the tenancy continues as a periodic agreement on the same terms, minus the fixed term. Accepting rent confirms the landlord treats the tenant as a tenant, and from then on periodic notice and termination rules apply.

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Related Topics & Key Terms

Key Terms:

periodic tenancyholding overlease expiryrent acceptanceNSW Residential Tenancies Act
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