RETIREMENT VILLAGES ACT 1986 - SECT 25 In-going contributions to be held in trust

RETIREMENT VILLAGES ACT 1986 - SECT 25

    (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.

S. 25(2) amended by No. 35/1996 s. 453(Sch. 1 item 72.2(a)).

    (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;

S. 25(2)(c) substituted by No. 126/1993 s. 264(Sch. 5 item 18).

        (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 ;

S. 25(2)(d) amended by No. 35/1996 s. 453(Sch. 1 item 72.2(a)).

        (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—

S. 25(3)(a) amended by No. 35/1996 s. 453(Sch. 1 item 72.2(a)).

        (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

S. 25(3)(c) amended by No. 35/1996 s. 453(Sch. 1 item 72.2(a)).

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

S. 25(3)(d) amended by No. 35/1996 s. 453(Sch. 1 item 72.2(a)).

        (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).

S. 25(4) repealed by No. 35/1996 s. 453(Sch. 1 item 72.2(b)).

    *     *     *     *     *

    (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—

S. 25(5)(a) amended by No. 35/1996 s. 453(Sch. 1 item 72.2(a)).

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

S. 25(5)(b) amended by Nos 35/1996 s. 453(Sch. 1 item 72.2(c)), 11/2001 s. 3(Sch. item 64.2).

        (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.

S. 25(7) amended by Nos 35/1996 s. 453(Sch. 1 item 72.2(d)), 11/2001 s. 3(Sch. item 64.2).

    (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).

S. 25(8) amended by No. 35/1996 s. 453(Sch. 1 item 72.2(a)).

    (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.