RETIREMENT VILLAGES ACT 1999 - SECT 53A How to work out particular exit fee for a residence contract

RETIREMENT VILLAGES ACT 1999 - SECT 53A

53A How to work out particular exit fee for a residence contract

(1) This section applies to an exit fee for a residence contract that is worked out under the contract having regard to the length of time the resident has resided in the accommodation unit to which the contract relates.

Example—

This section applies if the exit fee is 5% of the ingoing contribution payable under the contract after 1 year’s residence in the unit and 6% of the ingoing contribution payable under the contract after 2 years residence in the unit.

(2) If the contract was entered into before the commencement of this section, the exit fee must be worked out on a daily basis unless the contract provides a way of working out the exit fee that is not on a daily basis.

Example of how to work out the exit fee for a residence contract on a daily basis—

If—

(a) the exit fee is 5% of the ingoing contribution payable under the contract after 1 year’s residence in the unit and 6% of the ingoing contribution payable under the contract after 2 years residence in the unit; and

(b) the resident resides in the unit for 1 year and 14 days, but not during a leap year;

the exit fee is 5% of the ingoing contribution payable under the contract for the first year of residence plus 14 / 365 of 1% of the ingoing contribution payable under the contract for the 14 days of the second year of residence.

(3) If the contract is entered into after the commencement of this section, the exit fee must be worked out on a daily basis.