RETIREMENT VILLAGES ACT 1986 - SECT 29 Creation of charges

RETIREMENT VILLAGES ACT 1986 - SECT 29

    (1)     If a refundable in-going contribution has been paid for a residence right in a retirement village, there is created on the application date a charge to secure, refundable in-going contributions (whenever paid) on all retirement village land used for the purposes of that retirement village.

    (2)     Subsection (1) has effect whether or not the charge is registered.

S. 29(3) amended by No. 18/1989 s. 13(Sch. 2 item 72(c)).

    (3)     If the first residence right in a retirement village is created after the commencement of this section the charge is a first charge on the retirement village land, and has priority over all encumbrances created or arising after the creation of the charge, or created or arising before the creation of the charge but after the retirement village notice in respect of the village is registered or recorded on the Register.

    (4)     If a residence right in a retirement village was created or arose before the commencement of this section, the charge on the retirement village land has priority over all encumbrances created or arising in relation to that land on or after the application date.

    (5)     Retirement village land which is charged under this section continues to be liable to the charge despite any change in ownership, and the charge is enforceable against any owner for the time being of the land, whether or not that owner has notice of the charge.

    (6)     On any date on which it is necessary to determine the amount of the charge, the amount of the charge is the amount of refundable in-going contributions paid by or on behalf of a resident of the retirement village to which the charge relates, less any amount which has before that date been refunded to residents.

    (7)     A certificate signed by an owner of retirement village land charged under this section or the owner's agent stating that at a particular date the amount of the charge is the amount specified in the certificate is prima facie evidence that on the date the amount of the charge is the amount so specified.

    (8)     If asked by a resident an owner or owner's agent must give to the resident a certificate under subsection (7).

S. 29(9)(10) repealed by No. 85/1998 s. 24(Sch. item 52.12).

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S. 29(11) amended by No. 18/1989 s. 13(Sch. 2 item 72(d)), substituted by No. 85/1998 s. 24(Sch. item 52.13).

    (11)     Within 14 days after land becomes subject to a charge under this Part, the owner of the land charged must lodge with the Registrar of Titles notification in a form approved by the Registrar of Titles of that charge and the land to be charged.

Penalty:     50 penalty units.

S. 29(12) substituted by No. 18/1989 s. 13(Sch. 2 item 72(e)), amended by No. 85/1998 s. 24(Sch. item 52.14).

    (12)     The Registrar of Titles may make a recording of the charge in the Register.

    (13)     The interests and rights listed in section 42(2) of the Transfer of Land Act 1958 have priority over a charge.

    (14)     An owner must not enter into a contract which creates or gives rise to a residence right in respect of which a charge would be created under this Part unless—

        (a)     the owner has been released from or has discharged all encumbrances which would take priority to the charge, except those mentioned in section 42(2) of the Transfer of Land Act 1958 ; or

        (b)     the holders of all encumbrances which would otherwise take priority to the charge have agreed with the owner that the charge will have first priority.

Penalty:     50 penalty units.

    (15)     Subsection (14) does not apply to a retirement village in respect of which an owner entered into a contract before the commencement of this section which created or gave rise to a residence right.

    (16)     In subsection (14) a reference to an encumbrance does not include a reference to a retirement village notice.