New South Wales Consolidated Acts

RESIDENTIAL (LAND LEASE) COMMUNITIES ACT 2013 - SECT 109

109 Operator to enter new site agreement

(1) This section applies if a purchaser or prospective home owner under a contract, or proposed contract, for the sale of the home (the
"sale contract" ) requests the operator of the community to enter into a new site agreement (the
"new site agreement" ) for the residential site with the purchaser or prospective home owner.

Note : This section is not relevant if the purchaser or prospective home owner intends to remove the home from the community.

(2) The operator must enter into the new site agreement after the request is made, unless--

(a) the operator declines to enter into the agreement and does so on reasonable grounds (including, for example, the ground that it appears reasonably unlikely that the sale contract will be entered into), or

(b) without limiting paragraph (a), the operator and the purchaser or prospective home owner do not agree on the terms of the proposed agreement.

(3) If the sale contract is entered into before the new site agreement is entered into--

(a) the contract may include a term to the effect that the contract is subject to the new site agreement being entered into within a specified period after the contract is entered into, and

(b) the contract is unenforceable if it includes that term and the new site agreement is not entered into within that period.

(4) If the new site agreement is entered into before the sale contract is entered into--

(a) the agreement may include a term to the effect that the agreement is subject to the sale contract being entered into within a specified period after the agreement is entered into, and

(b) the agreement is unenforceable if it includes that term and the sale contract is not entered into within that period.

(5) The site fees under the new site agreement must not exceed fair market value.

(6) Fair market value is the higher of the following--

(a) the site fees currently payable by the home owner who is selling the home,

(b) the site fees currently payable for residential sites of a similar size and location within the community.

(7) The operator must not unreasonably delay or refuse to enter into a new site agreement referred to in subsection (2).