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VIC: Residential Tenancies Act Section 144AA Prohibited terms—general

Writer: David WoolfallDavid Woolfall

Prohibited terms—general (1) An agreement under section 144 must not include any of the following terms—

(a) a term that requires the resident to take out any form of insurance;

(b) a term that exempts the caravan park owner from liability for an act of—

(i) the caravan park owner or that person's agent; or

(ii) a person acting on behalf of the caravan park owner or that person's agent;

(c) a term that provides that if the resident contravenes the agreement, the resident is liable to pay—

(i) all or part of the remaining rent under the agreement; or

(ii) increased rent; or

(iii) a penalty; or

(iv) liquidated damages;

(d) a term that provides that if the resident does not contravene the agreement—

(i) the rent is reduced; or

(ii) the rent may be reduced; or

(iii) the resident is to be paid a rebate or other benefit; or

(iv) the resident may be paid a rebate or other benefit;

(e) any other prescribed prohibited term.

(2) A term in an agreement under section 144 must not include a term that requires a party to the agreement to bear any fees, costs or charges incurred by the other party in connection with the preparation of the agreement. Note Section 144 provides that terms which must not be included in an agreement are invalid.

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