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What happens to the rental bond?

If you are buying a property that has a tenant in it and the tenant will be staying on after settlement, then at settlement, your solicitor should receive a transfer of the bond held by the Rental bond Authority. The Rental Bond Authority will still hold the bond; however, it will now be recorded in your name rather than in the seller's name. If the bond was paid directly to the seller and not to the Rental Bond Authority, then the seller should pay that money to you at settlement and you should arrange for it to be deposited with the Rental Bond Authority.

If you are a tenant buying from your landlord, you should request that your solicitor collect at settlement a release of bond form so that you can lodge this with the Rental Bond Authority and collect your bond after settlement.

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