FEATURES OF BILL

New Zealand Herald, Volume LXXIII, Issue 22435, 3 June 1936, Page 14

FEATURES OF BILL

The fair rent is not to be highor than 'the rent paid by the tenant on November 27, the date of the last general election, or any reduced rent payable since that date, unless_ the landlord proves that that rent is, in tho circumstances, too low. The fair rent, it is stated, may be altered from time to time and will only apply as long as the tenancy lasts. A new fair rent may be determined for any subsequent tenancy. Recovery of Excess Bent

CHECK ON HIGHER BENT LANDLORD'S POSITION POWERS OF THE COURT FACTORS IN MAKING ORDERS ■ [ay TELEGRAPH —SPECIAL REPORTER] "WELLINGTON, Tuesday A dwelling hunse is defined in the Fair Rents Bill introduced in Parliament to-day as any house, or any part of a house let as a separate dwelling, where the tenantjy does not include any land other than the site of the house and a garden. The definition does not include any premises ■ let at a rent that includes payments in resj>ect of board or^ attendance. any premises used exclusively or principally by the tenant for business purposes,- or any premises forming part oi: a building originally erected for the purpose of being let as two or more separate flats or apartments.

Clause eight of the bill provides that every order fixing a fair rent shall cease to have effect if a subsequent order is made in respect of the same house or on the expiry of the tenancy existing when the order was made. In all other cases the order will expire at the conclusion of the period for which it was made.

Where an order has been made fixing the fair rent of any house no rent in excess of the amount fixed is to be recoverable for any period during the currency of the order. However, if excess rent is paid it may be recovered by the tenant within six months of the date of payment as a debt due to him by the landlord, and may, without prejudice to any other mode , of recovery, be deducted by Ithe tenant from any future rent payable by him within the period of six months. No :lsne or premium is to be chargeable in respect of a tenancy or renewal, and the same process for recovery by the tenant in cases where these charges are made is laid down in the bill. Premiums Forbidden

Exclusions from Bill The restrictions provided in the bill will not ,apply in the following instances: —To a house let for the firsf time after the passing of the bill, to 'a house which his not been let between November .27 and the date of the pas* igigof the bill, to a house let after the passing ~of the bill at a rent exceeding £2lO a ydar, whether or not the rent is computed on an annual basis, and a houne which has been let between November' 27, 1.935, and the dato of the passing of the bill at a rent exceeding £2lO a year. Provisions for fixing basic rents are set out in the bill. In the case of houses let' as such on May 1, 19«.i6, the basic rent will bo the rent payable on that date! Where houses were not let oia May 1 the basic rent is to be the rent' last payab!!e before that dato. In the case' of house.'; let after May 1 and before the passing of the bill the basic rent is defined as\that first payable in respect of those houses. Certain IncreaM Irrecoverable An increase in the basic rent of any house made between May 1 and the diate of the passing of the bill or after the passing of the bill is to be irrecoverable, notwithstanding anything to the contrary in any agreement. However, if a fair, rent is fixed by a magistrate in excess of the amount now payable the increase in rent will be permitted. Power is given to either a landlord or a tenant to apply to a magistrate for an order determining the faiir rent of a house for ;& i>eriod not exceeding one year. No order by a magistrate can be made to apply earlier than the date of'' application, although if the faiir rent fixed by the order exceeds the rent payable under the tenancy the order fixing the* fair rent is to come into effect only after 14 days' notice. In cases where the fair rent exceeds the rent payable under the tenancy a landlord is not entitled to charge above the rent fixed by the magistrate, but if the fair rent is lesu than the existing rent the landlord must reduce the rent to an amount not exceeding that fij:ed by the magistrate immediately thci order takes effect, tower to Order Refund In dealing with rent cases magistrates ,are empowered, if they think it fair and equitablo, to make an order for the refund or remission by tho landlord to the tenant for the whole or any pa,rt of tho rent in excess of the fair rent which may have been miado or which may be payable by time tenant for any period within the six month's immediately preceding that for which tho fs.ir rent was fixed. This particular provision is not to apply to any rent paid or payable for any period for which'a fair rent has been fixed. Considerations to be taken into account by magistrates in fixing fair rents are set out in the bill. • Limitation on Pair Kant

It is also stated that persona who stipulate for, demand or accept for themselves or others any bonus, fine, premium, or other similar sum in consideration of obtaining or offering to obtain or doing' anything for" the purpose of obtaining a dwelling house for the occupation of any other person commits an offence. Such sums are also recoverable within six months. It will be an offence to demand «r accept in payment for furniture, fixtures or other effects, as a condition of the tenancy of a dwelling house, a sum in excess of the fair selling value of such articles.

No proceedings are to be taken by a landlord for the recovery of possession of any house or for the ejectment of a tenant nnless he gives 14 days' clear notice to the tenant concerned. However, where the tenancy has been determined by 14 days' notice in writing this provision will not apply. Notices must contain an address for service and must be signed by the landlord or some authorised attorney or agent;; they must bo delivered to the tenant personally or posted by registered letter. Grounds for Possession

The grounds on which orders may bo made for the recovery of possession of a house or for the ejectment of a tenant are lin ted as follows: — Failure by the tenant to pay th<* agreed rate of rent or tho rent fixed under the bill or to perform other conditions of tho tenancy, failure, of tb<* tenant to take reasonable care of tho premisses, or commission of waste by the tenant, tho causing of nuisance or annoyance by the tenant to neighbour ing occupiers, the reasonable require ment of the house by the landlord for his own occupation, the sale of tho premises to a purchaser who requires them for his own occupation, the subletting; of the house or any part of it by the tenant so that he makes a profit which, having /regard to the rent ho pays, is unreasonable. When application is made for an order for recovery of possession or for ejectment of a tenant the Court has to take into consideration questions of hardship that might arise for either the tenant or the landlord by the granting or refusal of the application._ It may refuse an application notwithstanding the fact that it has been made on any of the grounds listed above. Court's Discretionary Powers

When a landlord recovers possession of a house for his own occupation it is stipulated that ho, must not let the house or permit any person other than himself and his family and domestic servants to occupy it. Ho must not sell or agree to sell the house within six months of the date when he obtains possession without the authority of a magistrate. However, if tho house contains more rooms than are reasonably required by tho landlord and his family he will be permitted to let any extra rooms. In taking over possession of a house under an agreement for the sale of the premises the landlord and any other party to the agreement must keep the terms of the agreement, which must be proved to be genuine. AIT parties who sign a document which is not a genuine agreement will be deemed to have committed an offence. Similarly when a landlord requires possession for tho purpose of sale of the premises the purchaser will not be entitled to sell the premises again within six months, except with the authority of a magistrate. He also will be entitled to let extra rooms which he may not require.

It is further stipulated that the fair rent fixed by a magistrate is mot to exceed the basic rent or the rent, if any, payable on November 27, ,1935. The lower of these two to ho taken as the basis. However, if the landlord can 'produce evidence to satisfy the magistrate that in the special circumstances of the case :it is fair and equitable, the lair rent may exceed the basic rent or that payable on November 27

In the explanatory memorandum to the bill it is stated that, in the absence of regulations to the contrary, the fair rent. in to be such that, in the opinion of the magistrate, it would lie fair and equitable for the particular tenant to pay, having regard to any to be inflicted on the tenant, or the landlord and to all other relevant considerations.