New South Wales Consolidated Acts

RESIDENTIAL (LAND LEASE) COMMUNITIES ACT 2013 - SECT 110

110 Voluntary sharing arrangement

(1) A site agreement entered into after the commencement of this section may provide for a voluntary sharing arrangement.

(2) A
"voluntary sharing arrangement" is any provision under which the home owner agrees to one or more of the following--

(a) to pay a specified entry fee to the operator, on entry into the agreement or in any other manner specified in the agreement,

(b) to pay deferred site fees to the operator, being site fees the payment of which is deferred in a manner specified in the agreement,

(c) to pay a specified sale amount to the operator if the home is sold by the home owner, with that sale amount being either (but not both) of the following--

(i) a specified share of the capital gain in respect of the home,

(ii) a specified on-site premium of the total sale price of the home as determined in the agreement,

(d) to pay a specified exit fee to the operator, being a fixed fee (not of a kind referred to in paragraph (c)) that is payable if the home is sold or removed from the site.

(3) If a home is sold and the operator is the selling agent, the operator may deduct any amount payable under the voluntary sharing arrangement from the proceeds of the sale that are held by the operator in accordance with the agreement.

(4) If a home is sold and the operator is not the selling agent, the selling home owner must pay any amount owing to the operator under the voluntary sharing arrangement within 14 days of the sale being finalised.

(5) The Tribunal may, at any time, on application by an operator, make an order requiring a home owner to pay any amount owing to the operator under a voluntary sharing arrangement together with interest determined by the Tribunal.

(6) A sale amount is not payable if a home is sold to be removed from the residential site or is purchased by the operator or a close associate of the operator.

(7) In this section--

"capital gain" means any increase between the amount that the home owner paid for the home and the amount that the purchaser paid for the home. Site fees and any fees or charges payable under the site agreement are not to be included in the calculation of the capital gain.