RETIREMENT VILLAGES ACT 1999 - SECT 45 Form and content of residence contract

RETIREMENT VILLAGES ACT 1999 - SECT 45

45 Form and content of residence contract

(1) A scheme operator must ensure each residence contract for the retirement village includes details, including the details prescribed by regulation, about the following—

(a) the right to rescind the contract under section 48 before the cooling-off period ends;

(b) if the cooling-off period starts on the day the residence contract is signed—the date the cooling-off period ends;

(c) if the cooling-off period starts on the day a later event happens or another contract is entered into—the later event or other contract;

(d) the ingoing contribution payable under the contract;

(e) the exit fee payable under the contract;

(f) the resident’s exit entitlement;

(g) the services charges;

(h) the amounts payable, and when the amounts are payable, by the resident for the maintenance reserve fund for the retirement village;

(i) the insurance for the retirement village, and insurance for which the resident is responsible;

(j) all conditions precedent to the resident’s right to reside in the retirement village;

(k) the resident’s right to resell the right to reside in the accommodation unit;

(l) the resident’s entitlement to audited and unaudited financial statements for the village;

(m) the dispute resolution process established under this Act;

(n) the statutory charge, if relevant to the resident’s title to, or interest in, the accommodation unit;

(o) the resident’s and scheme operator’s rights to terminate the contract;

(p) the funds the scheme operator is required to keep;

(q) the retirement village facilities;

(r) the retirement village land;

(s) whether the resident and the scheme operator are to share any capital gain or capital loss after the resident’s right to reside in the unit is terminated and, if so, how it is to be shared;

(t) another matter prescribed by regulation.

(2) A regulation may prescribe a term that must be included in a residence contract (a
"required term" ) or that must not be included in a residence contract (a
"prohibited term" ).

(3) A scheme operator must not enter into a residence contract that—

(a) is not in the approved form; or

Note—

See section 227AA (2) .

(b) does not include details required under subsection (1) ; or

(c) does not include a required term; or

(d) includes a prohibited term.

Penalty—

Maximum penalty—100 penalty units.

(4) A provision of a residence contract is of no effect to the extent it—

(a) includes a prohibited term; or

(b) purports to restrict or exclude the operation of a provision of this Act; or

(c) is otherwise inconsistent with this Act.