one of my boys landlords today told him he wants the bond in cash, my son offered to dc it direct into his acc but was told no cash only
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why would a LL want the bond in cash
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Because he has been bitten once too often by 'I'll pay be DC' before, and as a result missed an opportunity to rent the property out to somebody else.
Unfortunately the 'honest' majority have to suffer from the 'dishonest' minority.DFTBA
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I'd say that the LL has had promises of a DC by a tenant in the past - and then nothing has happened.
If your son decides to pay the LL in cash, ring and advise the LL that the cash is available to be picked up.
Type up a piece of paper with two receipts on it (both the same), one is for the LL to keep, one is for the tenant to keep. It needs to state "I, JOE BLOGS, LL of XXXXXX flat, xxxxxx street, xxxxxx city, received from JOHN ADAMS, tenant of same, the amount of $xxxxxxxxxxxx, being xxxxx weeks rent as bond for said property".
Once both receipts are signed and dated by both parties, each gets a copy to keep for their records.
Whilst the LL may want the Bond in cash, there is no obligation for the tenant to pay the Bond to the LL at all (see below).
21Tenant may pay bond direct to chief executive with landlord's consent
(1)Notwithstanding anything in section 19 or section 20, but subject to subsection (2), any amount payable by way of bond may, with the consent of the landlord, be paid direct to the chief executive.
(2)Every such payment shall be accompanied by a statement of particulars in the approved form signed by the landlord and the tenant.
(3)Where any amount payable by way of bond is paid direct to the chief executive, the chief executive shall—
(a)deposit the money into the Residential Tenancies Trust Account:
(b)give to the tenant a written receipt showing—
(i)the address of the premises to which the payment relates; and
(ii)the name of the landlord; and
(iii)the name of the tenant; and
(iv)the amount and nature of the payment; and
(v)the date of the receipt by the chief executive of the payment:
(c)give to the landlord a copy of the receipt issued in accordance with paragraph (b).
Deal done.Patience is a virtue.
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Originally posted by essence View PostGet a receipt. Show this to LL, he can't argue with that.
JimO. Cash, in any transaction of a casual nature, is legal tender in NZ and can not be refused (unless it is silver over $5 in value). Cash can only be refused if there is a contract between the parties which stipulates how the funds are to be paid. For example, your son enters a rental property with the landlord and the tenancy agreement states that rent is to be paid by automatic payment into a certain account.
As for bank transfers. They can be reversed by banks if there are insufficient funds available. As a matter of policy, we take cash only for the initial rent etc.
We make a formal offer of tenancy to those which we select which is accepted by them with one weeks rent as a deposit. This offer states the conditions upon how the tenancy is to be formally entered into and with a finite date to do so. Each party gets a copy.
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Originally posted by Keys View Post
JimO. Cash, in any transaction of a casual nature, is legal tender in NZ and can not be refusedLast edited by Glizzle; 08-02-2013, 09:03 AM.
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Originally posted by Glizzle View PostThats not actually correct, cash can be refused, anywhere anytime.
Therefore, I quote the Reserve Bank of New Zealand as my authority to make the statement.
What do you quote as your authority to make your statement?
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Originally posted by Keys View PostWhile in the clutches of liable parent payments as a result of a divorce I paid my contributions, in cash, each month at the IRD. The IRD changed their system to bank transfers. I inquired about the right to refuse cash from the Reserve Bank of New Zealand. They gave me the information I posted earlier.
Therefore, I quote the Reserve Bank of New Zealand as my authority to make the statement.
What do you quote as your authority to make your statement?
same as if a shopkeeper hasn't put thru a sale for a $2 lighter and the guy hands over a $100 bill he can deny him the right of sale but if puts thru the sale the $100 bill must legally be accepted.
Reserve Bank Act 1989
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any way he offered to pay the bond by internet immediately as he was talking to the LL on the phone, he is currently working in Wanaka, and the LL refused this wanting instead crisp $100 notes in his hand on saturday when he returns, i told him to make sure he gets a recieptLast edited by jimO; 08-02-2013, 12:20 PM.
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You should also be receiving an acknowledgement from the department of building and housing within 28 days.Profiting from Property, not People
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Originally posted by GlizzleBut this still dosnt change my point, you are fully in your legal right to refuse cash as a payment by stopping the transaction or sale/debt............. Reserve Bank Act 1989
Received in my in box on February 8th.
Dear Keys
Thank you for your email.
Unfortunately, the legal tender rules are not straightforward, but are rather technical and arcane. This means I cannot give a simple answer to your query. The rules of legal tender say that cash cannot be refused in payment for a debt. In the case of purchases from a shop, however, no debt is incurred by the customer at the time they offer to pay for goods with cash. This means a shop can refuse to accept the cash and insist on payment by other means (eg electronically). If, however, the customer has incurred a debt before paying (eg been given delivery of the goods before paying) then the shop will not be able to refuse cash in satisfaction of the debt. Whether a debt has been incurred will depend on the circumstances, but in most situations where a consumer offers to buy goods with cash no debt has arisen.
Please note s27 of the Reserve Bank of New Zealand Act 1989, which limits legal tender in respect of certain coin denominations. For example, 50 cent coins are only legal tender for amounts up to $5.00.
Kind regards
Raewyn Peters
Knowledge Adviser | Reserve Bank of New Zealand
2 The Terrace, Wellington 6011 | P O Box 2498, Wellington 6140
D. +64 4 471 3820 | T. +64 4 472 2029 | F. +64 4 471 3722
www.rbnz.govt.nz
Mind you, this version has changed from the one I got a decade or so ago.Last edited by Keys; 10-02-2013, 04:26 PM.
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