Bond Refunded to Third Party

[ozsupra]

I was wondering if this situation has occurred to anyone else and if so what was the outcome. It happened to me a number of years ago in NSW but I am still wondering what action I could have taken.

Anyway,
Rented my IP out to a couple that were nothing but trouble; multiple relatives moved in, dead cars on the front lawn, house a complete mess, the story you read here all to often. Took about eight months to finally get them out (that's another story) however when they did they leave they left considerable damage.
I contacted the rental bond people to obtain the bond money for repairs and was told the bond had already been refunded.

Turns out the couple had claimed hardship and Centerlink had given them an interest free loan for the bond on the provisor that upon vacating the premises the bond would be returned in full. After they vacated, Centerlink had faxed over a copy of the bond contract to the bond agency (another government agency) who had then refunded the entire amount to Centerlink. They advised me that they had no other option as the contract preceeded the lease.

At no time was I aware of this situation and as far as I was concerned the tenants paid a cash bond.

I now reside in QLD and the Rental Bond Borad recently advised me (regarding another situation) that unless a party is on the bond agreement they have no claim on the bond.

Your thoughts....

 

[kathryn d]

What is the purpose of the bond then?
You got ripped off.Did you apply for the bond in the required time period (assuming there is one)?

 

[rugrat]

you got ripped off - they are not authorised to release it to anyone until both parties have signed off for it to be released, only then could they have released it to C/L. Unless you left it too late to contest the release, in which case that is deemed to be consent.

When I first moved out, the dept of housing paid 75% of my bond - the proviso is that if the bond is not returned (ie, LL kept it) then I would be ineligible to apply again for a certain amount of time.

 

[Lil Skater]

They can't do that.

All parties must apply and agree to how much bond is refunded and to which people. Only the people that registered the bond can claim it back - even in the event of death of a tenant the bond authority needs a death certificate and a letter from the power of attorney to get it released.

So if you had an agent only the agent can sign off to get the bond returned, unless the management is transferred to another agent in which case the appropriate bond transfer form needs to be filled out by the agent which management is being taken away from and the new agent/landlord needs to lodge it.

 

[chilliblue]

Place a formal complaint to all parties and advise that the money is to be refunded to you.

Might be time for your local federal member to get involved if you want them to action the complaint.

 

[ozsupra]

Thanks for the advice, and Yes I did apply in the required time period. However I believe this would now be difficult to persue as it was a few years ago as I stated. I will however make sure it never happens again.
A.