Cover

1. Subject to these terms and conditions, we will pay the Property Manager the amount that the Lessor is entitled to claim from the Tenant/s in relation to the Leased Property under the terms of the Lease or the Act (Bond Claim). Bond Claims may include unpaid amounts such as rent, cleaning costs, repairing damage (other than fair wear and tear), changing locks or disposing of goods left by the Tenant/s.
2. The maximum amount we will pay will be the lower of the Bond Amount shown in the BondCover Certificate or the maximum amount that the Lessor may require the Tenant/s to pay as a bond under the Act.
3. The Bond Amount will automatically increase in accordance with increases in the rent payable by the Tenant/s under the Lease provided that the Tenant/s has paid the correct BondCover Fee. The Tenant/s must notify us of all rental increases at the start of each cover period to enable the correct BondCover Fee to be processed.

BondCover Fee

4. The Tenant/s must pay the BondCover Fee for each Cover Period between the start of the BondCover contract until the end of the Lease, including any period during which the Lease is extended or continues as a periodic tenancy.
5. We may increase or decrease the BondCover Fee at the following times by giving 7 days’ notice in writing to the Tenant:
   1. At the end of each Cover Period;
   2. When there is a change of more than 10% in the rent payable under the Lease; or
   3. When there is a change in Tenant/s.

Transferring BondCover

6. When ownership of the Leased Property changes, we will transfer the benefit of the BondCover contract to the new Lessor on receipt of written confirmation of the change from either the Property Manager or the existing and new Lessors.
7. When some, but not all, of the Tenant/s under the Lease change, the Tenant/s may request us to vary the BondCover Certificate. We may include the incoming Tenants and remove the outgoing Tenant/s from the BondCover Certificate at our absolute discretion, provided each of the incoming Tenant/s meet our criteria.

Changes to BondCover Certificate

8. We will issue a BondCover Certificate at the commencement of the Cover Period/s. We will issue an updated BondCover Certificate after a change to the BondCover Fee, the Bond Amount, a Tenant or the Lessor or Property Manager.

Cooling Off

9. The Tenant/s or Lessor may give us a signed, written notice to the effect that they cancel the BondCover contract within the period ending on the earlier of:
   1. 5 business days after the day the BondCover Certificate is issued; and
   2. 1 business day before the Tenant occupies the Leased Property under the Lease.
10. If a notice of cancellation is provided under clause 9:
    1. The BondCover contract will be taken to be cancelled on the day it was issued;
    2. We will refund the BondCover Fees paid by the Tenant/s or Lessor less our reasonable administration costs of assessing the BondCover application and issuing the BondCover contract; and
    3. No fees will apply to the Tenant/s if the Lessor cancels BondCover in accordance with this agreement during the Cooling Off period.
11. We may cancel the BondCover contract by giving the Tenant/s and Lessor 30 days written notice, if the Tenant or Lessor:
    1. Makes a false or misleading representation about their ability to meet their rights and obligations in relation to the BondCover contract to us; or
    2. Fails to disclose anything that affects their ability to meet their rights and obligations in relation to the BondCover contract to us.
12. If any of the events described in clause 11 occur:
    1. The BondCover contract will be taken to be cancelled on the day it was issued or, if the Tenant has commenced occupation of the Leased Premises under the Lease, the BondCover contract will continue in operation and is cancelled from the earlier of the following:
    1. 30 days from the day the cancellation notice was given or
    2. the day the Tenant and the Lessor enter into alternative arrangements in relation to a Bond for the relevant Lease;
    2. We will refund the pro rata amount of the unused BondCover Fee less our reasonable administration costs of assessing the BondCover application and issuing the BondCover contract; and
    3. The Tenant is liable for a valid Bond Claim during the period the BondCover contract was in force.

Terminating and Cancelling BondCover

13. This BondCover contract automatically terminates when the Lease ends.
14. Other than in accordance with clause 11, we may not cancel this BondCover contract without the prior written consent of both the Tenant/s and Property Manager.
15. The Tenant/s may request us to cancel the BondCover contract at any time by giving us 2 business days written notice through snug.com/bonds. We will cancel the BondCover contract on receipt of either:
    1. Confirmation by the Property Manager, via email or online at snug.com/bonds, that the Tenant/s have vacated the Leased Property and that the Lessor will not make a Bond Claim; or
    2. Proof of lodgement of a Bond with a Rental Bond Authority in relation to the Leased Property.
16. If the BondCover contract is cancelled other than in accordance with clause 11:
    1. The first year’s BondCover Fee is non-refundable;
    2. No refund is payable if the BondCover Fee has been paid monthly;
    3. If the BondCover fee has been paid annually in advance, we will refund 75% of the unused BondCover Fee to the Tenant/s, pro-rated for the unused Cover Period shown on the current BondCover Certificate, less all administration fees, taxes or duties.

Communicating with Us

17. The Property Manager and Tenant/s must use the online services provided at snug.com/bonds for all communications with us concerning BondCover including, but not limited to applications, renewals, cancellations, Bond Claims and complaints, unless we advise otherwise in writing.

Claims

18. The Property Manager must notify Snug of a Bond Claim within 14 days of the end of the Lease and may lodge a Bond Claim at any time up to 30 days after the end of the Lease.
19. We may reduce the amount of the Bond Claim by the extent to which a delay in meeting these requirements prejudices our ability to determine and resolve the Bond Claim.
20. Bond Claims may be made online at snug.com/claims. The Property Manager must provide all information and documents we reasonably request to evidence the Bond Claim, including but not limited to:
    1. A copy of the Lease;
    2. A copy of the condition report for the Leased Property;
    3. Documents showing all Lease payments made by the Tenant/s during the Cover Period;
    4. A detailed description of the loss or damage;
    5. Photographs of the Leased Property before and after the loss or damage; and
    6. A copy of any insurance policy that covers the loss or damage.
21. On receipt of the required information and documents, we will:
    1. Determine the amount of the Bond Claim (Claim Determination); and
    2. Seek the Property Manager and Tenant/s’ agreement to that amount.
22. Subject to clause 24, we will pay the agreed amount (less any amount already paid by the Tenant/s) to the Property Manager’s nominated bank account within the following time after receipt of the Property Manager’s and Tenant/s’ agreement:

    Amount of Claim	Time for Payment
    Up to and including $500	2 business days
    More than $500	5 business days

23. If we are unable to agree the amount of the Bond Claim with the Property Manager or the Tenant/s, we:
    1. May pay up to $300 to the Property Manager at our discretion for a valid Bond Claim without recovery from the Tenant/s; and
    2. Will pay the amount required by a Tribunal Order (Claim Settlement).
24. If any the items listed in clause 20(a)-(f) are not or cannot be provided to us, subject to clause 21-25, we will pay the Property Manager up to:
    1. $500 or the amount of the Bond Claim (whichever is the lesser) without further documentation; and
    2. Any further amount due in respect of the Bond Claim, upon receipt of a Tribunal Order specifying the amount payable up to the Bond Amount.

Recovery from Tenant/s

25. The Tenant/s named on the BondCover Certificate at the time a Bond Claim is made jointly and severally agree to:
    1. Unconditionally and irrevocably indemnify us against any amount that we pay to, or for the benefit of, the Lessor in respect of an agreed Bond Claim or a Tribunal Order (Claim Amount); and
    2. Pay that amount to us within 14 days of a written demand to do so.
26. If the Tenant/s do not either:
    1. Pay the Claim Amount to Snug within 90 days of the Claim Determination or 60 days after a Claim Settlement; or
    2. Agree a zero interest payment plan with Snug in writing within 7 days of the agreed Claims Determination/Settlement;
    then interest will accrue daily on the unpaid Claim Amount at 8% per annum from the later date of the Claim Determination/Settlement to the date the Tenant/s pays Snug.
27. The Lessor appoints Snug as its attorney and agent to take action against the Tenant/s in the Lessor’s name on our behalf in respect of the Claim Amount (Recovery Action) and agrees that:
    1. Snug will have full discretion in the conduct of the Recovery Action; and
    2. The Lessor will provide all information and do all things that Snug reasonably requests, in a timely manner, to enable Snug to conduct the Recovery Action.
28. If the Tenant/s fail to either pay the BondCover Fee when due or pay the Claim Amount within the time required in clause 27(b), we may, at our discretion, do any of the following in relation to all or any of the Tenant/s:
    1. Notify the Property Manager of the failure to pay;
    2. Decline or increase the fees for a future BondCover contract;
    3. Record the event on the Tenant/s’ record on Snug;
    4. Notify tenancy database providers of the default, where permitted by law;
    5. Appoint debt collection agents or lawyers to bring a Recovery Action; and
    6. Waive all or part of the amount owing for Tenants who are eligible under the Snug Community Care program, the terms of which are published at snug.com.
29. If at any time Snug pays to the Property Manager any moneys in relation to the Claim Amount (Snug Paid Moneys) and at any time the Property Manager receives moneys from the Tenant in the Recovery Action or otherwise in respect of the Claim Amount the Property Manager will promptly pay to Snug all such moneys so received from the Tenant up to the amount of the Snug Paid Moneys.

Complaints

30. If the Property Manager or Tenant/s are dissatisfied with the BondCover service for any reason, they may lodge a complaint at snug.com/help. We will try to resolve the complaint within 10 business days.

Miscellaneous

31. We will not vary this BondCover contract in a way that is detrimental to the Tenant/s or Lessor without giving 14 days prior notice in writing. We may make minor or technical variations to this contract at any time and will notify you by publication on our website.
32. We may provide information about the Tenant/s and Lessor to statutory authorities where required by law, and to service providers we engage to assist us to carry out our responsibilities and obligations under this contract.
33. If there is any ambiguity in all or part of a clause that may make it illegal, unenforceable or invalid, it must be read in a way that makes it legal, enforceable and valid where possible. If any clause or part of a clause is illegal, unenforceable or invalid, must be treated as removed from this agreement, but this does not affect the rest of this contract.
34. This BondCover contract is governed by the law of the State or Territory in which the Leased Property is situated. If any clause is found invalid the agreement is read down only to the extent of the invalidity and the other terms remain in force.

Definitions

In these BondCover terms and conditions, unless the context requires otherwise, where capitalised, the following words have the following meanings and a reference to the singular includes the plural and vice versa:

Act means the legislation governing Leases in the State or Territory in which the Leased Property is situated, all regulations made pursuant to that legislation and any statutory instrument which replaces or supersedes that legislation or regulation.

BondCover Fees means the fees and other charges that Snug requires you to pay in respect of BondCover.

Bond Amount means the amount shown in the BondCover Certificate.

Bond Claim means an amount that the Lessor is entitled to claim from the Tenant/s in relation to the Leased Property under the terms of the Lease or the Act.

Bond Refund Form means the form that the Rental Bond Authority in the State or Territory in which the Leased Property is situated requires in order to release a Rental Bond to a Property Manager or Tenant.

Claim Amount means the amount we pay to a Lessor in respect of a Bond Claim.

Claim Determination means the amount that we determine should be paid in respect of a Bond Claim.

Claim Settlement means the amount a Tribunal determines is payable in respect of a Bond Claim.

Cover Period means the period nominated as the ‘Cover Period’ on the BondCover Certificate.

Lease means the residential tenancy agreement in place in relation to the Leased Property.

Leased Property means the property nominated as the ‘Leased Property’ on the BondCover Certificate occupied by the Tenant and under lease from the Lessor.

Lessor means the person nominated as the ‘Lessor’ on the BondCover Certificate.

Property Manager means the Lessor or a person or company that the Lessor has authorised to manage the Leased Property on the Lessor’s behalf and nominated as the ‘Property Manager’ on the BondCover Certificate.

Recovery Action means a demand, claim, legal proceedings or other action of any type that we bring against the Tenant/s in the Lessor’s name in respect of any amount we pay to the Lessor in respect of a Bond Claim.

Rental Bond Authority means the body responsible for holding rental Bonds in the State or Territory in which the Leased Property is situated.

Tenant/s means the person or persons nominated as the ‘Tenant’ on the BondCover Certificate.

Tribunal Order means an order of the body responsible for determining Bond Claims in the State or Territory in which the Leased Property is situated, which sets out the amount the Tenant/s is required to pay to the Lessor in respect of a Bond Claim.

Special Conditions of Residential Tenancy Agreement

Tenant: [Firstname and Surname]
Leased Property: Unit #, Street Address, Suburb, State Postcode
Cover Period: dd-mmm-yy and dd-mmm-yy
Lessor: [Owner or Property Manager's name]

The Tenant/s and the Lessor agree following special conditions apply to the residential tenancy agreement, the particulars of which are set out above (Lease):

1. Guarantee of Obligations

   The Tenant/s may elect to provide a guarantee (BondCover) instead of a Rental Bond. If the Lessor agrees to accept a guarantee:

   1. A copy of the BondCover contract must be either annexed to these Special Conditions or provided to the Lessor;
   2. The Lessor and Tenant/s agree to be bound by the terms and conditions of the BondCover contract and, to the extent permitted by law, agree that a breach of the BondCover contract constitutes a breach of the Lease.
   3. If the BondCover contract terminates for any reason while the Tenant/s is in occupation of the Leased Property, the Tenant/s must pay the Rental Bond in the manner required under the Lease.

   In this special condition, regardless of the term used to describe it in the Lease, Rental Bond means the amount that the Lessor may require the Tenant/s to pay as security for the Tenant/s’s obligations under the terms of a residential tenancy agreement under the law relating to residential tenancies in the State or Territory in which the Leased Property is situated.

   Signed: Tenant/s

   [Signature here]

   Date: DD-MM-YY

   Signed: Lessor/Lessor's Property Manager:

   [Signature here]

   Date: DD-MM-YY

Terms Updated: Wed 8 Aug 2018, 14:00PM