NSW Finder's fees and room access

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Olivier

Member
29 January 2019
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0
1
Hi, first of all I hope this is the right section to ask my question, if this is not the case I'm really sorry.
I'm a French student who came to Sydney for a research internship. I found a room in a flatshare through Flatmates.com.au. The person who I'm in contact with is one of the owner or something like that, at least his full time job looks like renting rooms since he has many listings for many rooms. Here's my issue: before giving me access to room this guy (let's call him Ed) wants me to pay the equivalent of 6 weeks of renting, 4 of which are finders fees. Also he doesn't want me to give me access to the room until the money gets to his bank account, even if I provide him with a documentary evidence that the transfer has been made by my bank. My banker says that it should arrives in 1 week. The thing is Ed didn't make me sign anything, no contract about anything and I already paid him 1 week in cash out of the 6 weeks so he can hold the room for me. So I would like if this was legal ? Like should I pay him or not since I haven't signed anything? He is not being very responsive and nice so that's why I'm checking the legal technicalities of this. I wanted to contact LegalAdvice services but maybe it is an easy question to answer that's why I'm asking here first.
Thank you very much,
Olivier
 

Rob Legat - SBPL

Lawyer
LawConnect (LawTap) Verified
16 February 2017
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2,894
Gold Coast, Queensland
lawtap.com
I suggest you read this webpage: Factsheet 02: Starting a tenancy

According to the NSW Act, the only payments you can be required to pay before entering into a rental agreement are:
- A holding fee (no more than 1 week's rent)
- Rent in advance (maximum of 2 weeks' rent)
- Bond (maximum of 4 weeks' rent)
- The fee payable to register the residential tenancy agreement (if any)

You must be given a receipt setting out the relevant details such as:
- The name of the person receiving the payment
- The name of the person paying
- The address of the premises the payment is in respect of
- The period that the payment relates to
- The date the payment is made
- The amount paid

He doesn't have to do this until the payment is received, however. Just because it is sent does not mean it will arrive, and it is when the payment actually arrives that is relevant.
 

Scruff

Well-Known Member
25 July 2018
902
133
2,389
NSW
Just to add that the "finder's fee" is illegal. (They can be fined $2200 for that under section 23 of the RTA).

This guy sounds extremely dodgy. I wouldn't hand over another cent without a written tenancy agreement.