(a) the contract provides that recurrent charges are to
be varied otherwise than in accordance with a fixed formula, and
(b) the
variation exceeds the prescribed CPI variation.
Note : A provision to the effect that recurrent charges may be varied by "up
to" a certain percentage is an example of such a provision.
(1B) The operator
of a retirement village must give the resident concerned notice in accordance
with this section at least 60 days before any proposed variation.
(b) specify the date from which it is intended that the proposed
recurrent charges are to be payable, and
(c) contain a brief explanation of
the reasons for the proposed variation exceeding the prescribed CPI variation
or the prescribed rate or amount (if any), and
(c1) include details of any
action taken to minimise the proposed variation in recurrent charges, and
(d)
state that the variation will not take effect unless the residents concerned
consent to the variation or the Tribunal orders that it take effect, and
(e)
contain such other information as may be prescribed by the regulations.
(3) A
notice given under this section may be cancelled by a later notice or a later
notice may provide for a lesser increase than the increase specified in the
earlier notice.
(4) For the purposes of the date from which the proposed
variation is to take effect, a later notice is taken to have been given on the
date on which the earlier notice was given.
(5) However, the period of 30
days specified in section 107 (2) commences, in relation to a later notice, on
the date on which the later notice is actually given.