Victorian Consolidated Legislation

Retirement Villages Act 1986 - SECT 25

In-going contributions to be held in trust

25. In-going contributions to be held in trust



(1) This section does not apply to so much of an in-going contribution as is
deposit money to which sections 24 and 25 of the Sale of Land Act 1962 apply.

(2) An estate agent or legal practitioner who acts for an owner in a
transaction relating to a residence contract must hold as a stakeholder moneys
comprising all or any part of the in-going contribution received in connexion
with the transaction until all the following events have happened-

   (a)  all conditions precedent to the creation of a resident's right in
        favour of a person by whom or on whose behalf the in-going
        contribution was paid are fulfilled;

   (b)  the person by whom or on whose behalf the in-going contribution was
        paid becomes immediately entitled to enter the retirement village as a
        resident;

   (c)  if the transaction relates to a building or part of a building which
        is not yet constructed or is under construction, an occupancy permit
        is issued in respect of that building or part of the building under
        the Building Act 1993;

   (d)  If the transaction relates to accommodation occupied by a resident who
        is entitled to a refund of all or part of an in-going contribution on
        another person taking up or becoming entitled to take up the
        accommodation, the owner pays the whole amount of the refund or
        directs the refund to be paid out of the moneys held by the estate
        agent or legal practitioner-

and on the happening of the last of those events, the in-going contribution
may be paid to the owner in the owner's own right or as the owner directs.

(3) Subsection (2) does not stop the transfer of moneys comprising all or any
part of an in-going contribution-

   (a)  from one legal practitioner to another legal practitioner acting for
        the owner; or



   (b)  from one estate agent to another estate agent acting for the owner; or

   (c)  from an estate agent to a legal practitioner acting for the owner; or





   (d)  from an owner to an estate agent or legal practitioner acting for the
        owner-

but the person who receives the moneys so transferred must continue to hold
them in accordance with subsection (2).

* * * * *



(5) If in the course of a transaction relating to a residence contract an
owner receives moneys comprising all or any part of an in-going contribution,
the owner must within 7 days after receiving it pay it-

   (a)  to an estate agent or a legal practitioner acting for the owner; or



   (b)  into a special purpose account established at an authorised
        deposit-taking institution within the meaning of the Banking Act 1959
        of the Commonwealth in Victoria to be nominated by the owner in the
        joint names of the owner and the resident by whom or on whose behalf
        the contribution was paid.

(6) An account established under subsection (5) may be drawn on only with the
consent of both the resident and the owner or, if either of those persons has
died, the person's legal personal representative.

(7) This section does not impose an additional liability on an authorised
deposit-taking institution within the meaning of the Banking Act 1959 of the
Commonwealth in respect of moneys deposited under subsection (5).



(8) An owner legal practitioner or agent who contravenes this section is
guilty of an offence.

Penalty: 50 penalty units.

(9) This section does not affect the court's power to order relief against the
forfeiture of moneys paid.

(10) If under this section an owner nominates an interest bearing account into
which an in-going contribution must be paid, a person who under this section
is entitled to payments from the account is also entitled to the interest.