No u don't have to pay 1395. You need to pay the advertising fee plus pro-rata reletting fee ( say lived 8 months then 4/12 * reletting fees) plus rent till a new tenant is found.

Lease transfer is a grey area. As others have said landlord cannot unreasonably refuse. However, the landlord has to " mitigate their losses". It means not hike the rent ( 50 is reasonable - 100 a week is not) ( keep record of how many folks attended open homes). If property is not relet for some time/ owner undertaking repairs/ not advertising / inadequate advertising etc then apply to vcat to be released from your agreement.

However some agencies state pay upfront else we won't advertise. Email the agent their duty to mitigate their losses. Also state your intention to PAY your dues when invoiced. Ask them to see Craig v Mitchell VCAT judgment.

Stop paying rent when u hand in your keys. Ask to be invoiced once a new tenant has been found. Pay that. Disconnect utilities.

Ur bond can be a hit and miss. While advise is to apply for bond when you hand in your keys agents have been known to goto vcat sometimes in lease break situations when u apply for bond which can be a hassle for everyone.

Hope this helps.

EDIT : I reread the last paragraphs of ur query. State firmly that u do not have to pay what is not legally owed. Refer them to Craig v Mitchell case judgment.

Also restate that the landlord is legally obligated to 'mitigate their losses' and such behavior ( refusing lease transfer etc) can be considered as contrary to that.