All Topics / Help Needed! / Rent payment intermediary/security – NSW

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  • Profile photo of propertyboypropertyboy
    Participant
    @propertyboy
    Join Date: 2008
    Post Count: 232

    Hi all,

    I am looking to rent an apartment directly from a landlord in NSW and need to pay a 1-week holding deposit to secure the property. I want to pay this to ensure I secure the property and commit to the landlord as I need to urgently move in on the lease start date.

    I believe in NSW I can transfer the 4-week bond direct to NSW fair trading so this minimizes risk against fraud/settlement of this payment. I have told the landlord I will pay NSW Fair Trading instead of direct to the landlord.

    However, how do I protect myself against paying the 1-week holding deposit direct? Is there an intermediary function that can be used to provide me with protection?

    I have suggested paying the first rent payment with cash upon receiving the keys (obviously will ask for receipt and note this on the lease) to avoid the settlement risk of the first rent and also the bond is covered as I will pay direct to NSW fair trading. Now I just need to figure out how to pay the holding deposit securely. I really do not feel comfortable transferring money directly to a private landlord’s personal account and hoping they will deliver on good faith.

    What are my options?

    How do I protect myself whilst also providing the landlord surety that I have committed? Should I suggest I’ll pay the 4-week bond upon signing of the lease and the holding deposit and rent with cash upon handover of keys?

    • This topic was modified 1 year, 8 months ago by Profile photo of propertyboy propertyboy.
    • This topic was modified 1 year, 8 months ago by Profile photo of propertyboy propertyboy.
    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Trust account?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of propertyboypropertyboy
    Participant
    @propertyboy
    Join Date: 2008
    Post Count: 232

    If I am given bsb and account number how do i confirm the account is a trust account and not just an ordinary account the agent or their reps can pull money ouT of?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    In the past I have actually asked the bank and they confirmed it was a trust account.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

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