sec.161Rights and obligations about holding deposits

### sec.161 Rights and obligations about holding deposits A holding deposit paid to or for a prospective lessor of residential premises is forfeited to the prospective lessor if— the prospective tenant does not, within the option period— exercise the option to enter into an agreement for the premises; or notify the prospective lessor of the intention not to exercise the option; or having exercised the option, the prospective tenant fails to take all necessary and reasonable steps to enter into the agreement. If the holding deposit is not forfeited but the agreement is not entered into, the prospective lessor must refund the deposit to the prospective tenant within 3 days after the prospective tenant notifies the prospective lessor of the intention not to exercise the option. If the holding deposit is not refunded, it may be recovered by the prospective tenant as a debt owing by the prospective lessor to the tenant. If the prospective tenant exercises the option, the prospective lessor or prospective lessor’s agent must take all necessary and reasonable steps to ensure the prospective lessor enters into the agreement. Maximum penalty—20 penalty units. If the agreement is entered into— the holding deposit must be applied in full or part payment of the rental bond for the agreement; and if an amount remains from the deposit after payment of the rental bond—the amount must be applied in payment of rent. Sections 24 and 25 apply to this section as if a reference in the sections to the lessor were a reference to the prospective lessor. (sec.161-ssec.1) A holding deposit paid to or for a prospective lessor of residential premises is forfeited to the prospective lessor if— the prospective tenant does not, within the option period— exercise the option to enter into an agreement for the premises; or notify the prospective lessor of the intention not to exercise the option; or having exercised the option, the prospective tenant fails to take all necessary and reasonable steps to enter into the agreement. (sec.161-ssec.2) If the holding deposit is not forfeited but the agreement is not entered into, the prospective lessor must refund the deposit to the prospective tenant within 3 days after the prospective tenant notifies the prospective lessor of the intention not to exercise the option. (sec.161-ssec.3) If the holding deposit is not refunded, it may be recovered by the prospective tenant as a debt owing by the prospective lessor to the tenant. (sec.161-ssec.4) If the prospective tenant exercises the option, the prospective lessor or prospective lessor’s agent must take all necessary and reasonable steps to ensure the prospective lessor enters into the agreement. Maximum penalty—20 penalty units. (sec.161-ssec.5) If the agreement is entered into— the holding deposit must be applied in full or part payment of the rental bond for the agreement; and if an amount remains from the deposit after payment of the rental bond—the amount must be applied in payment of rent. (sec.161-ssec.6) Sections 24 and 25 apply to this section as if a reference in the sections to the lessor were a reference to the prospective lessor. - (a) the prospective tenant does not, within the option period— (i) exercise the option to enter into an agreement for the premises; or (ii) notify the prospective lessor of the intention not to exercise the option; or - (i) exercise the option to enter into an agreement for the premises; or - (ii) notify the prospective lessor of the intention not to exercise the option; or - (b) having exercised the option, the prospective tenant fails to take all necessary and reasonable steps to enter into the agreement. - (i) exercise the option to enter into an agreement for the premises; or - (ii) notify the prospective lessor of the intention not to exercise the option; or - (a) the holding deposit must be applied in full or part payment of the rental bond for the agreement; and - (b) if an amount remains from the deposit after payment of the rental bond—the amount must be applied in payment of rent.