Know Legal Laws How The Landlord’s Mortgage Can Affect Tenant

April 27, 2023    propertylawyersperthwide
Know Legal Laws How The Landlord’s Mortgage Can Affect Tenant

A mortgage is an agreement between the bank and the property holder. Under the agreement, the lender lends money to the landlord on interest by taking the title of their property. It comes with the condition that the landlord has to repay the borrowed money to the lender.


Mortgage disputes can arise anytime between the borrower and the lender due to any disagreement. Hence, the entire procedure is bonded under a legal system to avoid any such misadjustment over time.


Therefore, putting the mortgaged property on rent can highly impact the tenants. The law allows the tenant to secure themselves from any inconvenience if the lender fails to repay the borrowed money. Any complications in the entire process are rigidly managed by the mortgage dispute lawyer.


The blog has synthesised the possible ways a tenant can get affected by a mortgage. It has furthermore summarised effective solutions to resolve it.

What Is A Landlord’s Mortgage?

The mortgage is basically evidenced based on a deed of trust that encumbers the interest of a landlord in the leased property.


It protects the financial security of the agreement. If you are a tenant, you must have a possible idea about all the variables like tenants and landlords rights and responsibilities. This is important because if you stay as a tenant in a house under a mortgage bond, then the inability of the landlord to repay the money can make you shelterless.

What are the individual rights of the landlord and the Tenant?

Both a tenant and a landlord carry different rights in the case of a mortgage.

The rights of a landlord

Several rent control laws in Australia support the rights of a landlord. You are just one search away from the “Property lawyers near me” to get your tenancy protected from unfair exploitation.

  • Eviction by Landlord

In Australia, the landlord will be allowed to evict the Tenant with a lease. It is not necessary to inform the Tenant if the rent is on the arrest.

  • Charge rent

On the other hand, charging extra money from the Tenant under any circumstance is not considered the right of a landlord in Australia. Therefore, the Tenant does not have to pay any administrative or late fee to the landlord. Hence, if you are asked to overpay, searching for mortgage lawyers near me would be the last step for you. The solicitors would do the rest.

  • Temporary Repossession of Property

To take the possession back, the landlord has to request an appeal in the supreme court of Australia. The order can provide a 14 days notice to the Tenant to end their tenancy.

The rights of a tenant

The unfaithful use of the rights of the mortgagee can badly impact your tenancy. If you do not know how to overcome such unfruitful situations, then you can ask for immediate help from a mortgage dispute lawyer. For instance, knowing your set of rights can provide you with a bit of assistance.

  • Against Unfair Eviction

Though the landlord has the right to evict you, you can anytime raise your voice against the unfair eviction. For that, you must know only when the mortgagee can evict you. It is only possible if a warrant of possession has been submitted to the police.

  • Fair Rent

A landlord getting the property on rent cannot charge a higher amount than the actual value of the property. If you feel the rental charges are extraordinary upon you, then you can ask for “Property lawyers near me” and take this matter to court for a fair solution.

  • Essential Services

When the Tenant is paying rent, he or she has the right to consume the essential services. It includes electricity, water supply, water resources and others. If your landlord has declined to give you these critical services, then the solicitors from lawyers Perth can assist you by giving you back your rights.


Now that you know the tenants rights and responsibilities, in exceptional cases, they both have equal opportunities to reject or accept the other conditions.

What are the steps for legal eviction?

The word ‘eviction’ here carries a heavy weight. It is a notice that a landlord provides to his tenant. Under this notice, the tenant is given space to end his tenancy within a certain period of time. Or else, the eviction can be provided for paying rent or repairing any damages. In case the tenants fail to do so within the given time period, then the landlord can file a lawsuit.

  • Give you a valid vacate notice.
  • Apply to the VCAT and Victorian Civil to request a possession order.
  • Get a possession warrant from VCAT
  • Surrender the possession warrant to the police.

These are the few steps that a landlord has to take before making a fair eviction.

How Can A Mortgage From A Landlord Affect You?

If you are a tenant, the mortgage can affect you in many ways. Hence, disagreements revolving around this can lead to disputes. This is when you need to take the advice of mortgage lawyers to know your legal rights over the property and the mortgage.


If your landlord fails to repay the money they have borrowed, then the bank can take control of his premises. If this happens, your tenancy can be put to an end through the mortgage with a court order.

What If Your Landlord Fails To Fulfil The Mortgage Obligation?

In case the landlord fails to comply with the legal responsibilities of the mortgage, under the guidance of mortgage lawyers, the following documents can work as your saviour in such conditions.

  • Demand for rental properties from the mortgagee

In this aspect, you can provide a copy of the demand letter to the landlord, according to which you made the payments. You can use the payment receipt for each of the payments made if the landlord defaults on the mortgage.

  • Demand for a possession order

The mortgage can demand such possession, but it does not allow you to leave without proper court approval. However, if the Tenant calls for a possession order, it will be enforceable to the landlord.

  • Notice to occupier

You can send the notice of Supreme Court proceedings to the occupier. Under the Residential Tenancies Act 2010, it will provide you with all the supreme court details, including the number of the court file. It also allows you to negotiate the mortgage. The property lawyers Perth would help you to get the agreements in writing.

  • Taking the mortgage possession back

To take it back, the landlord is required to get an order from the supreme court. The mortgagee can also obtain the order even if the Tenant is not aware of this.

  • 30-day vacating notice

The sheriff is required to give you a thirty days notice before they evict you. During the period of notice, you do not need to pay any rent. If you have already paid for rent, you will get your money refunded. The property lawyers Perth can assist you in applying to the Administrative Tribunal and NSW Civil for a refund for your overpaid money. You can leave before the notice period expires.


The legal rights of a mortgagee can impact the Tenant in various ways. Hence, to undergo this process relatively, you can search for ‘mortgage lawyers near me’ to settle the dispute lawfully.

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