RETIREMENT VILLAGES ACT 1986 - SECT 42 Consequences of rescission

RETIREMENT VILLAGES ACT 1986 - SECT 42

    (1)     A right of rescission conferred by this Act may be exercised if and only if—

        (a)     the person entitled to rescind the contract serves notice in writing on all other parties to the contract that the contract is rescinded;

        (b)     the person entitled to rescind the contract serves notice mentioned in paragraph (a) not later than 6 months after becoming aware of the contravention which entitles the person to rescind the contract.

    (2)     If a person entitled to rescind a contract under this Act complies with subsection (1), the rescission takes effect on the date of service of the notice and the contract is to be regarded as being void from its beginning.

    (3)     If a contract is rescinded in accordance with this section—

        (a)     the rescission notice is to be regarded as applying to the management contract, the residence contract and all collateral contracts entered into by the resident; and

        (b)     the resident becomes entitled to the immediate payment of all moneys paid by the resident or on the resident's behalf in connexion with those contracts.

    (4)     On application by a resident or an owner, a court of competent jurisdiction if satisfied that—

        (a)     there has been a contravention of this Act which gives rise to a right in the resident to rescind the contract; and

        (b)     the resident has complied with subsection (1)—

may—

        (c)     make an order declaring that a residence contract entered into by that resident has been rescinded in accordance with this section; and

        (d)     make such other vesting orders and consequential orders as the court considers just and equitable, including orders requiring repayment of in-going contributions or other moneys paid by or in behalf of the resident.

S. 42A inserted by No. 4/2005 s. 19.