Victorian Consolidated Legislation

Retirement Villages Act 1986 - SECT 29

Creation of charges

29. Creation of charges



(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.

(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).



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(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.

(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.