RETIREMENT VILLAGES ACT 1999 - SECT 104 Working out and paying general services charges and maintenance reserve fund contributions for former residents

RETIREMENT VILLAGES ACT 1999 - SECT 104

104 Working out and paying general services charges and maintenance reserve fund contributions for former residents

(1) This section applies if a resident’s right to reside under a residence contract in an accommodation unit is terminated under this Act.

(2) The former resident is liable for the former part of the general services charge and maintenance reserve fund contribution for a financial year relating to the period from when the former resident vacates the resident’s accommodation unit until the first of the following happens—

(a) the right to reside in the accommodation unit is sold;

(b) a period of 90 days elapses (the
"90-day period" );

(c) the tribunal orders the scheme operator to pay the former resident’s exit entitlement under section 171 .

(3) If the former resident’s right to reside in the accommodation unit has not been sold within the 90-day period—

(a) the former resident and the scheme operator are each liable, after the 90-day period ends, to pay the relevant part of the general services charge and maintenance reserve fund contribution for a financial year in the same proportion as they are to share the gross ingoing contribution on the sale of the right to reside, as provided for in the residence contract; and

(b) the former resident ceases to be liable to continue to pay a proportion of the general services charge and maintenance reserve fund contribution for a financial year when the first of the following happens—

(i) the right to reside in the accommodation unit is sold;

(ii) a period of 9 months after the former resident vacates the accommodation unit ends.

(4) If a former resident’s right to reside in an accommodation unit has not been sold within the 90-day period, the scheme operator may—

(a) accrue, as a book debt, the former resident’s proportion of the general services charge and maintenance reserve fund contribution for a financial year; and

(b) set off the accrued amount against the former resident’s exit entitlement.

(5) A scheme operator must not charge interest on the accrued amount.

Penalty—

Maximum penalty—100 penalty units.

(6) Subsections (2) (b) and (3) (a) do not apply to a former resident under an existing residence contract.

(7) A reference in this section to the sale of a former resident’s right to reside includes a reference to the sale of a former resident’s freehold property.