Victorian Consolidated Legislation

Retirement Villages Act 1986 - SECT 26

Refund of in-going contribution

26. Refund of in-going contribution



(1) If during the negotiations which lead to the signing of a residence
contract by a resident an owner or manager, or a person acting on behalf of or
with the knowledge of an owner or manager makes a statement to the resident to
the effect that-

   (a)  all or part of the resident's in-going contribution will be refunded
        to the resident if the resident leaves the retirement village; or

   (b)  all or part of the resident's in-going contribution will be paid to
        the resident's estate if the resident dies-

this subsection entitles the resident or the resident's legal personal
representative to recover the amount of the in-going contribution to which the
statement relates on the happening of the event specified in the statement as
a debt due by the owner.

(2) If there is included in a statement mentioned in subsection (1)(a) or
(1)(b) a condition which must be fulfilled before an amount becomes refundable
under subsection (1), the condition is deemed to be void unless the condition
is-

   (a)  in the case of a resident who is an owner resident, in or to the
        effect that the resident or the resident's legal personal
        representative becomes entitled to recover the amount-

   (i)  on a day not more than 14 days after the day on which the purchase of
        the premises from the owner resident is completed; or

   (ii) if a person takes up residence in the premises in accordance with the
        contract for the purchase of the premises from the owner resident
        before the purchase is completed, on a day not more than 14 days after
        the day on which the person so takes up residence; or

   (b)  in the case of a resident who is a non-owner resident, in or to the
        effect that the resident or the resident's legal personal
        representative is only entitled to recover the amount-

   (i)  if payment is made by another person under a residence contract in
        respect of the premises of the non-owner resident, that is the
        equivalent of the amount owed to the non-owner resident after the
        non-owner resident has delivered up vacant possession of the premises,
        on a day not more than 14 days after the day on which the payment is
        so made; or

   (ii) on a day not more than 14 days after the day on which another person
        takes up residence in the premises of the non-owner resident after the
        non-owner resident has delivered up vacant possession of the premises;
        or

   (iii) on a day which is not more than 6 months after the non-owner resident
        has delivered up vacant possession- whichever is the earlier; or

   (c)  in accordance with the regulations.





(3) Subsection (1) applies to a statement-

   (a)  whether oral or in writing; or

   (b)  whether or not the statement was included in a residence contract or
        in any collateral contract; or

   (c)  whether or not the resident signed a residence contract in reliance on
        the statement; or

   (d)  despite a provision in a residence contract to the effect that the
        in-going contribution is a donation or is not refundable or any other
        provision inconsistent with the statement.

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