A legal loophole emerged in February, after the Court of Appeal declared that the NSW Civil and Administrative Tribunal, which handles disputes between tenants and landlords, has no jurisdiction if one party lives in another state.
A decision that could leave tenants and landlords with no remedy to disputes must be rectified immediately, says the Real Estate Institute of New South Wales.
The legal loophole emerged after the Court of Appeal declared in February that the NSW Civil and Administrative Tribunal, which handles disputes between tenants and landlords, has no jurisdiction if one party lives in another state.
REINSW President John Cunningham said the residential rental property market is crucial to our society and involves significant investment by a broad investor base.
“Inevitably there are disputes between parties which requires resolution. These disputes must have an efficient and cost effective means of resolution,” he said.
“It is not satisfactory for government to ignore the issue," he said. "Doing so creates additional problems, costs, and disharmony between the parities involved."
Cunningham said a resolution can be achieved by replicating legislation in other states, where the problem does not exist.
“Instead the government is sitting on its hands waiting for a decision from the High Court," which may not be made until the end of the year, said Cunningham.
"The High Court may agree with the NSW Court of Appeal so the problem in these circumstances will continue," he cautioned.
“In the best interests of this important sector, the NSW Government must act swiftly and effectively and rush the required amendment to the legislation through parliament," concluded Cunningham.
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