WATER ACT 2000 - SECT 155
Disclosure to proposed transferee or lessee of water allocation to which distribution operations licence applies
WATER ACT 2000 - SECT 155
Disclosure to proposed transferee or lessee of water allocation to which distribution operations licence applies
155 Disclosure to proposed transferee or lessee of water allocation to which
distribution operations licence applies
(1) This section applies to a water allocation if the water to which the water
allocation relates is distributed to its holder (the
"allocation holder" ) under a distribution operations licence (the
"DOL" ).
(2) The allocation holder must, before entering into a contract for
the transfer or lease of the water allocation, give the transferee or lessee
under the contract—
(a) a disclosure statement for the water allocation; and
(b) an acknowledgement notice for the water allocation, for signing by the
transferee or lessee.
Examples of a contract—
a contract for the sale or
lease of the water allocation or for the transfer or sublease of a lease of
the water allocation
(3) The disclosure statement for the water
allocation—
(a) must fairly set out, for the water allocation, the relevant
details of the distribution arrangements of the DOL holder, and the financial
obligations of the allocation holder arising from the arrangements; and
(b)
subject to paragraph (a) , must be, or must include, a document—
(i) as
prepared by the DOL holder for the purposes of the water allocation; and
(4) The DOL holder must ensure that the matters stated in
the document mentioned in subsection (3) (b) are the matters that the
transferee or lessee reasonably needs to be aware of before entering into the
contract.
(5) If the contract is entered into, but has not already been
settled, and the allocation holder did not give the transferee or lessee the
disclosure statement as required under this section, the transferee or lessee
may terminate the contract.
(6) In this section—
"acknowledgement notice" , for the water allocation, means a statement in the
approved form acknowledging that the transferee or lessee—
(a) has seen a
disclosure statement for the water allocation; and
(b) understands the
obligations, as set out in the disclosure statement, that apply to the
transferee or lessee on becoming the holder of the water allocation.