rta insurer assignment and agreement form

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Assignment & agreement form.

Greybrows · 01/03/2014 14:07

My parked car was written off by a drunk driver. I have been paid by my insurance company and told the other party was insured. This morning their insurance company have sent me some forms to sign as they say the other party was in breach of their terms and therefore not insured. It's called an assignmenment and agreement form and is asking me to transfer my right of recovery to them. They say that unless I sign they will not settle the claim unless I obtain a court judgement. Another form is about my hire car asking if I could have managed with a cheaper one or used public transport. I took the car offered which was in a similar category to my own, as decreed by my own insurance - technically I could have managed with a cheaper one. Is all this ok, should i sign the form? Also if I agree I could have managed with a cheaper hire car could I end up with a bill for the price difference? Thanks anyone who can advise.

If you have legal expenses on your car insurance, appoint a solicitor through that so they can deal with it on your behalf.

Assignment and agreement is fine. Basically the insurers are liable under the RTA to pay any unsatisfied judgement. This form allows them to get their money back from their policyholder after they have paid you. I would tell them that you had a comparable hire car-which you needed due to kids work whatever,

Thanks for replying. I rang my insurer today and they confirmed it was ok. It just seemed a bit odd that the other party's insurer was contacting me directly. The young kid that hit our cars is going to get a big bill as well as a ban. Silly boy!

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Experts explain auto insurance appraisal clause process — and pitfalls to avoid

Three professional appraisers late last year gave collision repairers and customers some considerations on whether a disputed repair bill merited invoking an appraisal clause and how to handle the process.

Collision Hub CEO Kristen Felder also warned body shops on the Nov. 11, 2020, “World Fair” broadcast that the consumer exercising a right to appraisal might not be the “magic bullet” a repairer expects.

It might not always be in the best interest of the policyholder, according to Felder. Sometimes, another strategy would be the better move, according to the show.

Before we get going, one caveat: This article and analysis is for informational purposes only and is not legal advice. Consult with a qualified attorney before taking any action. Felder offered a similar caveat regarding her company’s Nov. 11 show also featuring Larry Montanez , co-owner of P&L Consultants, and Mark Olson, CEO of Vehicle Collision Experts. (Together, she estimated the trio had probably been involved in 8,000-10,000 RTA proceedings.)

Invoking the RTA

An “appraisal clause” or “RTA” offers a means for a customer — or an insurer — to resolve a dispute over the amount the insurer owes the  customer  for a loss without having to go to court. (Remember: Your customer is the one who actually owes your body shop, not the insurer. The insurer owes the customer indemnification for their loss, such as the cost of the repair.)

They’re not necessarily going to be present in every insurance policy, and their parameters can vary based upon the wording of an individual policy . But the general concept goes something like this:

After reaching an impasse on the amount owed the consumer, either the insurer or policyholder can invoke the appraisal clause. Each side hires an appraiser, and both appraisers agree upon a third appraiser to serve as an “umpire,” with the umpire’s costs split between the policyholder and insurer. If any two out of the three agree on a dollar value for the loss, that amount is binding.

Montanez said body shops need to realize: “It’s not a shop thing.” It’s only the policyholder who has rights under the appraisal clause.

Montanez said that in most states he’d seen, the RTA can be invoked prior to repairs, during them, or after the work is completed. He said he only gets involved before or after the repair; after significant work and not just minor disassembly, you might as well just finish the repair, he said.

Olson described being involved in an RTA on a vehicle with significant damage and a “klunk” in the transmission. He said they couldn’t start the appraisal clause process until the cause of the “klunk” was determined. Otherwise, the final RTA dollar amount — which is binding — might not be enough to address the undetermined issue, he said.

However, he also warned about a shop jumping the gun. He offered this scenario: A $10,000 MSRP car currently worth $9,500 sees an insurer writing a $6,000 repair estimate and a shop writing a sheet for $8,000.

If the shop just decides to repair the car and let the RTA process play out, “you might be fixing a total,” Olson said. The insurer only owes the vehicle actual cash value — not the cost of repairing it, he said.

Felder noted that “that’s gonna make you real mad” when the insurer’s designated appraiser declares the vehicle a total, pays the customer, and takes posession.

Montanez said that a shop should have sought at least two supplements before the customer invokes the appraisal clause. Felder said that sometimes consumers can jump the gun, and the insurer has never even received a supplement prior to the RTA demand.

Montanez described a hypothetical shop advising a customer to write an RTA based on the discrepancy between a initial curbside or photo estimate for $1,000 and the shop’s $9,000 supplement. Yet had the shop simply requested an adjuster follow up and view the vehicle in-person, the adjuster might well have agreed the damage was far more extensive. But they didn’t get the chance to do so.

Montanez suggested customers should formally notify the insurer they’re exercising their right to an appraisal. This could be done in a phone call, but he instead recommended certified first-class mail and sending the insurer a fax and email as well.

Customer’s best interest

As Felder observed, the RTA might not be the right move for your customer

“They’re one more tool,” Olson said.

Montanez agreed, and described an RTA as not even rising to the level of a tool like a frequently used 10mm socket or wrench.

“It’s probably your 17mm socket,” Montanez said — merely “used occasionally.”

Montanez said he denied more RTA cases than he accepted, and often there’s a better strategy to resolve the situation. This might be as simple as having the customer making phone calls about the matter, according to Montanez, who said one would be shocked how often this resolved the dispute.

Appraisal clauses aren’t fast or easy, “it can be expensive,” and you might not win, according to Felder.

Felder said an appraisal process can be done in as little as a couple of weeks, but she’s seen it go two years. Montanez said the fastest he’s see was three hours, with the worst being a year and a half. “I average about three months,” he said.

She said the process could involve an appraiser’s fee of $495-$600 and half of an umpire’s $600-$750 bill. If the appraisal clause format requires retaining an umpire up front, the consumer might be out $1,000 prior to having negotiated anything, she said. (In other scenarios, one might be able to save money by waiting to see if the insurer and consumer’s appraisers can reach agreement before moving to hire an umpire, Montanez indicated.)

Felder said she advises that it’s not worth pursuing an RTA without at least a $3,000 difference between the shop and insurer estimates.

As Olson put it: Suppose the appraisal clause process costs the customer $1,000 and finds the customer’s appraisal $3,000 above the insurer’s. The umpire “splits the baby” and produces an appraisal $1,500 higher than the insurer’s.

“You spent a grand to chase $1,500,” Olson said. Small-claims court would be better, he and Montanez indicated.

“I love small claims court,” Felder said.

Felder said to make sure that the appraisal clause would be in the customer’s best interest. Explain the process and cost, she said. It’s OK to give an opinion, but “remember, you’re not an attorney” she said. Don’t declare that it’ll be a guaranteed payout, and “you don’t want to be interpreted as giving legal advice,” she said.

A facility whose customers start frequently invoking an RTA means “a target on you,” she said. An insurer might seek to determine if the shop is illegally coaching the policyholder — and the shop could find itself in trouble for practicing law without a license. Olson said the insurer might even seek to examine the policyholder under oath about their interactions with the shop.

From an insurer’s perspective, it “feels weird” to have multiple RTAs coming out of a single shop. They suspect “you’re running a fraud ring.”

Felder said her procedure is to explain the process if a customer asks but add the caveat “‘I’m not an attorney'” and she can’t advise what the customer should do. “‘You should talk to your attorney,'” she would say.

“Make sure that your house is clean,” she said. She noted one shop who uses “prefab” communications with customers, and “he doesn’t deviate.”

An appraisal clause would be contained within a first-party insurance policy — assuming it even exists in there . If the other insured driver admitted liability, “always go third-party,” Montanez said.

Felder agreed, saying she hates when a shop tells a customer with a valid third-party claim to file a first-party claim so as to exercise its appraisal clause.

“I can get a lot better under tort law,” she said. Relief in a small-claims court from an at-fault party wouldn’t be limited to the “four corners” of one’s own first-party insurance policy, according to Felder.

“That’s the worst advice you can give to anybody,” Montanez said of switching to a first party claim instead of a third-party claim where the other party has admitted liability.

Picking an appraiser

Felder also warned that an “extreme and distinct difference” exists between RTAs invoked on a repairable vehicle and a total loss.

The two types of appraisers need completely different knowledge and documentation, she said.

Olson said sometimes insurers will even assign a classic car appraiser, and he must spend time explaining collision repair to them. They’re good at their speciality, but they lack an estimating system and don’t know how to write a sheet, he said. “It’s crazy,” he said.

The customer should make sure whoever they hire has a background in collision repair and estimating, according to Felder. The appraiser should be current on training, familiar with OEM procedures, and operate different estimating systems, she said.

Shops should check with other shops for a reference on who to recommend to a customer, check their license if it’s required, and see how they did on past RTAs.

Determine any conflict of interest, Felder said; Olson said you want them to be truly independent.

She encouraged repairers to think about who they’d recommend to consumers and then reach out to that person and make a connection. The next couple of cases the repairer thinks might work, repairers should first call that prospective appraiser and have them offer perspective, she said.

A good appraiser will reassess the loss — potentially writing more than the shop did. Felder she hasn’t encountered a situation yet where she didn’t assess a higher amount than the repairer.

However, hiring the wrong appraiser will find them simply negotiating the shop’s estimate against the insurer’s last one, according to Felder.

“It’s only coming down,” Olson said.

In a similar vein, Olson advised not to trust an appraisers’ assertion they always win — they’re probably really just getting a partial win.

A situation where the appraiser wrote $10,000, the other side said $5,000 and the final RTA value was $7,500 — “that’s a ‘split the baby'” rather than a win, according to Olson. The customer got $2,500 but lost out on $2,500 more, according to Felder.

Montanez said he’d only truly won about a dozen appraisals out of 2,000-3,000.

All of the others saw him conceding part of what he had originally wrote; for example, producing an estimate for $19,000 and settling for $18,000 with a party who estimated $14,000.

It’s still a win for the customer, who did better than they would have otherwise. Montanez said he’s never saw a case end with less than an umpire who “cut the baby in half.” But it’s not an absolute victory for the appraiser, according to Montanez.

Picking an umpire

The two appraisers might find an impasse on picking an umpire together. Olson said a situation can arise where the other side will just reject every umpire the other appraiser suggests out of hand, not even bothering to vet them. Faced with such a situation, he said his strategy would be to see if he could live with any of their choices, for the process would go faster.

If agreement can’t be reached on an umpire, the parties would have to go to a judge.

Often, a judge doesn’t know any appraisers or the industry, and they’ll just select a mediation company or a retired judge, according to Olson.

A judge going this route instead of selecting a regular umpire is expensive, with the customer paying $1,000-$2,000 for their half of such a selection, according to Olson. He said his umpire bill would be “a lot more affordable than a retired judge.”

Felder said she’s never encountered one of these situations that cost less than $3,000 — meaning each side is now paying $1,500.

Once the shop’s customer invokes their right to appraisal, the shop is “now out of the equation 100 percent,” Felder said. “You are done. … You can’t talk to anyone.”

The vehicle owner must handle the process. The repairer can’t talk to the insurer or their designed appraiser, Felder said.

If the insurer’s appraiser needs to see the vehicle, they would contact the customer’s appraiser, who would arrange the appointment. If the insurer’s appraiser called the shop directly, the shop would say, “‘I can’t talk to you.'”

If the insurer calls the shop and wants to work out a deal, “you can’t talk,” she said.

Don’t do anything that the customer’s appraiser doesn’t instruct you to do, Felder said.

More information:

“Understanding Right To Appraisal (RTA) – Live Collision Hub World Fair & Expo”

Collision Hub YouTube channel, Nov. 11, 2020

Any agreement between two appraisers or one appraiser and an umpire can be binding in an appraisal clause proceeding. (wenjin chen/iStock)

An umpire is shown. (adamkaz/iStock)

From left, Vehicle Collision Experts CEO Mark Olson, P&L Consultants co-owner Larry Montanez and Collision Hub CEO Kristen Felder discussed appraisal clauses in a Nov. 11, 2020, “World Fair” broadcast. (Screenshot from Collision Hub video)

From left, Vehicle Collision Experts CEO Mark Olson discussed appraisal clauses in a Nov. 11, 2020, “World Fair” broadcast. (Screenshot from Collision Hub video)

Collision Hub CEO Kristen Felder discussed appraisal clauses in a Nov. 11, 2020, “World Fair” broadcast. (Screenshot from Collision Hub video)

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Keeping it Simple: The New MIB Uninsured Drivers' Agreement 2015

By Peter Allchorne

Published 30 July 2015

The new MIB Uninsured Drivers' Agreement was signed on 3 July 2015 and applies to accidents on or after 1 August 2015. The 1999 Agreement will still apply to accidents prior to that date. The new Agreement is simpler and reflects changes in the law and MIB working practices. 

The changes will of course be of key importance for insurers who have Article 75 status in relation to a claimant's claim and are therefore acting as agents for the MIB. Article 75 status is most commonly attained if a Section 152 declaration is obtained voiding the policy from inception on the basis of misrepresentation, or if the use of the vehicle falls outside the scope of the policy.

Key Changes

Clause 6: Subrogated Claims:  The circumstances in which the MIB (or Article 75 Insurer) can avoid reimbursing payments made to the claimant by someone else have been extended. This now includes not just payments that the claimant has received, but extends to payments which the claimant is entitled to receive .  This does not include the Criminal Injuries Compensation Authority.

So, where a claimant has insurance available to him he must claim on that insurance. If he has a comprehensive motor policy, he cannot elect to ignore that policy and carry out the repairs on a credit basis and then seek reimbursement from the MIB. Similarly, if the claimant obtains a hire vehicle on credit, the MIB will only be liable for any credit hire charges reasonably incurred if the claimant did not have the benefit of a separate credit protection policy covering him for those charges.

It is specifically stated that this does not apply to claims from the claimant's employer if that employer is not insured for the loss and in respect of the claimant's legal costs.

Whilst the advent of the Deregulation Act 2015 is likely to lead to a decrease in section 152 Declarations generally (as an insurer's liability now automatically comes to an end on policy cancellation, rather than retaining an RTA liability if the certificate is not returned), the widening of the scope of this exclusion is likely to mean that there will be some increase in instances where it may be advantageous to attain Article 75 status.

Clause 8: Furtherance of a Crime Exclusion:  The exclusion in Clause 6(1)(e) of the 1999 Agreement, denying compensation to a claimant where he is knowingly carried in a vehicle in furtherance of a crime, or to avoid lawful apprehension, has been removed.

This reflects the decision in the Court of Appeal case of  Delaney v Secretary of State {2015] . In this case, the exclusion where the vehicle was being used in furtherance of a crime was considered to be contrary to European law and the Secretary of State was ordered to pay  Francovich  damages.

Clause 8: Passenger Knowledge Exclusions:  It remains the position that the MIB (or Article 75 Insurer) may be able to avoid liability where a claimant was allowing himself to be carried in a vehicle where it had been stolen or unlawfully taken, or was being used without insurance. The requirement is now that the claimant  "knew or had reason to believe"  that the vehicle was stolen or unlawfully taken / used without insurance, instead of  "ought to have known".

This reflects the legal position following the case of  White v White [2000]  and also follows the wording in the Road Traffic Act 1988.

Clause 13: Joinder and Notice:  The requirements in relation to notice have been greatly simplified, many of which were not strictly followed in practice. Now, there is simply a requirement for the MIB to be joined from the outset as an additional Defendant to the proceedings. If a claimant reasonably believes there is an RTA insurer however and has given RTA notice to that insurer, that will suffice and there is no need for the MIB to be joined from the outset. Where an insurer has Article 75 status, the claimant should join the insurer into proceedings in their capacity as agents for the MIB.

Clause 15: Assignment of Judgments, Settlements and Undertakings:  It is now mandatory for the claimant to provide an assignment to the MIB of the claimant's right to pursue the uninsured motorist, in circumstances where the claim is settled by agreement prior to an unsatisfied Judgment being obtained. This reflects the common practice of settlement of a claimant's claim prior to a final judgment being obtained, using a form of assignment.

Miscellaneous Changes

Clause 1: Relevant Liability – Trailers: The MIB is now required to meet claims arising out of the use of an uncoupled trailer, i.e. a runaway trailer. Previously, the requirement only extended to trailers in the process of being towed. The claim must arise from the use of the trailer as a trailer and not from a use unrelated to its primary function. In practice, claims arising from, for example, a runaway burger van will be rare.

C lause 9: Terrorism:  The MIB is not liable for any claim where the injury or damage to property was caused by an act of terrorism. This was already the case under the Untraced Drivers' Agreement 2003. It cannot be the position that an act of terror is deemed to be an RTA liability.

Clause 11: Compensation for Damage to Property:  The £1 million property damage limit is formally incorporated from the 2008 Supplementary Uninsured Drivers' Agreement. The clause also provides guidance as to how to apply the limit if claims are received which exceed that limit.

Clause 17: Reference of Disputes:  These are now to be made to an arbitrator appointed by the Secretary of State, rather than directly to the Secretary of State. In practice, the right of appeal is rarely used.

More Changes Afoot?

Whilst the new Agreement deals with the government's problem as unearthed by  Delaney , potential problems remain in relation to the incompatibility of national law with European law and there has been criticism by some commentators. For instance, in the case of  Vnuk v Zavarovalnica Triglav [2014] , the ECJ ruled that compulsory motor insurance has to cover any accident caused by the use of the vehicle that is  "consistent with its normal function",  irrespective of location. Under the Road Traffic Act 1988, compulsory motor insurance is only required in respect of the use of a vehicle 'on a road or other public place'. However, any change would require amendment to the primary legislation under the Road Traffic Act. The government is aware of the issues raised by the decision in  Vnuk  and is considering its impact.

New Supplementary Untraced Drivers' Agreement

In addition to the Uninsured Drivers' Agreement, a new Supplementary Untraced Drivers' Agreement also comes into force on 1 August 2015 for accidents on or after that date. This reflects the provisions in the new Uninsured Drivers' Agreement in relation to exclusion for passengers with knowledge and the widening of the subrogated claims exclusion. The MIB is now working with the Department for Transport to produce a wholly new Untraced Drivers' Agreement. By its nature however, this will be of limited consequence to insurers.

Peter Allchorne

+44 (0) 117 918 2275

[email protected]

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Legal Templates

Home Business Assignment Agreement

Assignment Agreement Template

Use our assignment agreement to transfer contractual obligations.

Updated February 1, 2024 Reviewed by Brooke Davis

An assignment agreement is a legal document that transfers rights, responsibilities, and benefits from one party (the “assignor”) to another (the “assignee”). You can use it to reassign debt, real estate, intellectual property, leases, insurance policies, and government contracts.

What Is an Assignment Agreement?

What to include in an assignment agreement, how to assign a contract, how to write an assignment agreement, assignment agreement sample.

Partnership Interest

An assignment agreement effectively transfers the rights and obligations of a person or entity under an initial contract to another. The original party is the assignor, and the assignee takes on the contract’s duties and benefits.

It’s often a requirement to let the other party in the original deal know the contract is being transferred. It’s essential to create this form thoughtfully, as a poorly written assignment agreement may leave the assignor obligated to certain aspects of the deal.

The most common use of an assignment agreement occurs when the assignor no longer can or wants to continue with a contract. Instead of leaving the initial party or breaking the agreement, the assignor can transfer the contract to another individual or entity.

For example, imagine a small residential trash collection service plans to close its operations. Before it closes, the business brokers a deal to send its accounts to a curbside pickup company providing similar services. After notifying account holders, the latter company continues the service while receiving payment.

Create a thorough assignment agreement by including the following information:

• Effective Date:  The document must indicate when the transfer of rights and obligations occurs.
• Parties:  Include the full name and address of the assignor, assignee, and obligor (if required).
• Assignment:  Provide details that identify the original contract being assigned.
• Third-Party Approval: If the initial contract requires the approval of the obligor, note the date the approval was received.
• Signatures:  Both parties must sign and date the printed assignment contract template once completed. If a notary is required, wait until you are in the presence of the official and present identification before signing. Failure to do so may result in having to redo the assignment contract.

Review the Contract Terms

Carefully review the terms of the existing contract. Some contracts may have specific provisions regarding assignment. Check for any restrictions or requirements related to assigning the contract.

Check for Anti-Assignment Clauses

Some contracts include anti-assignment clauses that prohibit or restrict the ability to assign the contract without the consent of the other party. If there’s such a clause, you may need the consent of the original parties to proceed.

Determine Assignability

Ensure that the contract is assignable. Some contracts, especially those involving personal services or unique skills, may not be assignable without the other party’s agreement.

Get Consent from the Other Party (if Required)

If the contract includes an anti-assignment clause or requires consent for assignment, seek written consent from the other party. This can often be done through a formal amendment to the contract.

Prepare an Assignment Agreement

Draft an assignment agreement that clearly outlines the transfer of rights and obligations from the assignor (the party assigning the contract) to the assignee (the party receiving the assignment). Include details such as the names of the parties, the effective date of the assignment, and the specific rights and obligations being transferred.

Include Original Contract Information

Attach a copy of the original contract or reference its key terms in the assignment agreement. This helps in clearly identifying the contract being assigned.

Execution of the Assignment Agreement

Both the assignor and assignee should sign the assignment agreement. Signatures should be notarized if required by the contract or local laws.

Notice to the Other Party

Provide notice of the assignment to the non-assigning party. This can be done formally through a letter or as specified in the contract.

File the Assignment

File the assignment agreement with the appropriate parties or entities as required. This may include filing with the original contracting party or relevant government authorities.

Communicate with Third Parties

Inform any relevant third parties, such as suppliers, customers, or service providers, about the assignment to ensure a smooth transition.

Keep Copies for Records

Keep copies of the assignment agreement, original contract, and any related communications for your records.

Here’s a list of steps on how to write an assignment agreement:

Step 1 – List the Assignor’s and Assignee’s Details

List all of the pertinent information regarding the parties involved in the transfer. This information includes their full names, addresses, phone numbers, and other relevant contact information.

This step clarifies who’s transferring the initial contract and who will take on its responsibilities.

Step 2 – Provide Original Contract Information

Describing and identifying the contract that is effectively being reassigned is essential. This step avoids any confusion after the transfer has been completed.

Step 3 – State the Consideration

Provide accurate information regarding the amount the assignee pays to assume the contract. This figure should include taxes and any relevant peripheral expenses. If the assignee will pay the consideration over a period, indicate the method and installments.

Step 4 – Provide Any Terms and Conditions

The terms and conditions of any agreement are crucial to a smooth transaction. You must cover issues such as dispute resolution, governing law, obligor approval, and any relevant clauses.

Step 5 – Obtain Signatures

Both parties must sign the agreement to ensure it is legally binding and that they have read and understood the contract. If a notary is required, wait to sign off in their presence.

Related Documents

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• Business Contract : An agreement in which each party agrees to an exchange, typically involving money, goods, or services.
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General tenancy agreement (Form 18a)

General tenancy agreement (form 18a) v19 jun23.

The General tenancy agreement (Form 18a) is used when renting a house, unit, apartment, townhouse or houseboat in Queensland.

Rental law changes

1.  Rent increase changes  - Legislation to limit rent increase frequency to once every 12 months came into effect on 1 July 2023.  Learn more .   

2.  Minimum housing standards  came into effect for new tenancies (including renewed tenancy agreements) from 1 September 2023. They will come into effect for all remaining tenancies on 1 September 2024.  Learn more .

A written agreement must always be used when renting, even if the person renting is family or a friend. It is a legally binding written contract that outlines the legal rights and responsibilities of a tenant and property manager/owner. It applies to everyone renting the property (e.g. those in share homes or co-tenancies).

It is the property manager/owner’s responsibility to organise the agreement and give a copy to the tenant before they pay any money or commit to the tenancy.

A tenancy agreement must include:

• the name and address of the tenant and property manager/owner
• the start and end date of the agreement (or state that it is periodic)
• how the tenant should pay rent and how much is to be paid
• contact details for nominated repairers
• standard terms (what the tenant and the property manager/owner can and cannot do)
• any special terms (these should be agreed in advance, e.g. who is responsible for pool maintenance)

Special terms

Special terms can be added if the property manager/owner and tenant agree.

Examples: water charging, pool maintenance

Signing the agreement

The property manager/owner must provide the agreement to the tenant on or before the day the tenant occupies the property under the agreement. The tenant must then sign the agreement and return it to the property manager/owner within 5 days.

The tenant should be sent a copy within 14 days of the property manager/owner receiving the original.

The tenant must also be given a copy of the  Pocket guide for tenants – houses and units  (Form 17a).

During the tenancy

The property manager/owner must give permission for any new tenants or  sub-tenants before they can move in .

Property manager/owner records

The property manager/owner must keep a copy of the agreement for 1 year after the agreement ends.

1 September 2023 Rental law changes

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Learn more about new rental laws