Plain language law

New Zealand law explained for everyone

Residential Tenancies Act 1986

Miscellaneous provisions

137: Prohibited transactions

You could also call this:

“You can't make deals or do things that try to get around or break the rules in this law.”

You are not allowed to do anything that goes against this law, either now or in the future. This includes making any deals or agreements that break the rules in this Act.

You can’t try to get around the rules in this Act in any way, directly or indirectly. This means you can’t make deals or do things that are meant to avoid following the law.

It’s against the law to make someone else do any of these things that aren’t allowed.

If you make a deal that tries to avoid following this law, that part of the deal won’t count. It won’t work.

If you’re a tenant and you paid money or gave something valuable for the tenancy that wasn’t allowed rent, you can get it back. The landlord will have to pay you back. This also applies if you were given the choice to buy the place you’re renting.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM96415.

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Part 5 Miscellaneous provisions

137Prohibited transactions

  1. No person shall—

  2. enter into any transaction, or make any contract or arrangement, purporting to do, whether presently or at some future time or upon the happening of any event or contingency, anything that contravenes or will contravene any of the provisions of this Act; or
    1. enter into any transaction or make any contract or arrangement, whether orally or in writing, or do anything, for the purpose of or having the effect of, in any way, whether directly or indirectly, defeating, evading, or preventing the operation of any of the provisions of this Act.

      1. Requiring any person to enter into any transaction, or to make any contract or arrangement, in contravention of subsection (1) is hereby declared to be an unlawful act.

      2. Subject to subsection (4), any provision of any transaction, contract, or arrangement entered into in contravention of subsection (1) that would have the effect of, in any way, whether directly or indirectly, defeating, evading, or preventing the operation of any of the provisions of this Act shall be of no effect.

      3. All money paid and the value of any other consideration for the tenancy provided by the tenant (not being rent lawfully recoverable by the landlord) or, where the transaction takes the form of an option to purchase the premises to which the transaction relates, by the person on whom the option to purchase is conferred, shall be recoverable as a debt due to the tenant or prospective purchaser by the landlord.

      Compare
      • Residential Tenancies Act 1978–1981 s 89(3) (SA)