A landlord never lodged a tenant's bond. The tenancy ended 10 months later, and the tenant now wants exemplary damages. What is the time limit for applying?
Correct Answer
D) 12 months after the tenancy ended, for a failure to lodge the bond.
Section 109(2) says a landlord or tenant must apply for exemplary damages within 12 months after the tenancy ends for a failure to lodge a bond (s 19(2)) or keep bond records (s 30(2)). For other unlawful acts the 12 months runs from when the act was committed.
Why This Is the Correct Answer
Section 109(2)(a) runs the 12 months from termination for bond lodgement failures.
Why the Other Options Are Wrong
Option A: 12 months after the bond was paid, as for any other unlawful act.
Bond lodgement failures run from termination of the tenancy under s 109(2)(a).
Option B: 2 months after the tenancy ended, as for any bond-related claim.
Two months is the landlord's time limit for a one-sided bond application.
Option C: 6 years, the ordinary time limit for civil claims in New Zealand.
The RTA sets its own 12-month limit for exemplary damages applications.
Background Knowledge for Property Management
Source: https://www.legislation.govt.nz/act/public/1986/0120/latest/whole.html
Exam Tip for Property Management
Exemplary damages: 12 months, counted from termination for bond failures.
Common Mistakes to Avoid on Property Management Questions
- •Counting from when the bond was paid instead of when the tenancy ended.
More Property Management Questions
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A periodic tenancy began 8 months ago and the rent has never been raised. If the landlord gives written notice today, when is the earliest a rent increase can take effect?
A property manager discovers a tenant has been subletting rooms without permission for 6 months, generating significant income. The head tenant is otherwise compliant and rent is current. What factors would most influence the Tenancy Tribunal's decision on termination?
Under the Residential Tenancies Act 1986, what is the most a landlord can charge as a general bond (not counting any separate pet bond)?
- → Which of the following is NOT a mandatory requirement for tenancy agreements under the Residential Tenancies Act?
- → How much notice must a landlord give a tenant before conducting a routine property inspection?
- → A tenant has given 21 days' notice to terminate a periodic tenancy but wants to leave 5 days early. What must happen for this to be legally acceptable?
- → A tenant claims bond refund for $1,200 but the landlord disputes $400 for carpet cleaning. The tenant disagrees and applies to the Tenancy Tribunal. What happens to the bond during this dispute?
- → How often may a landlord carry out routine inspections during a tenancy?
- → A landlord wants to increase rent for a periodic tenancy. What is the minimum notice period they must give?
- → During a property inspection, a property manager discovers the tenant has installed a spa pool without permission. What is the most appropriate first step?
- → By what date did all private rental properties in New Zealand have to comply with the healthy homes standards?
- → A property manager conducts an inspection and finds the tenant has installed a heat pump without permission. The tenancy agreement prohibits alterations without consent. What can the landlord legally require?
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