New South Wales Consolidated Acts

RETIREMENT VILLAGES ACT 1999 - SECT 180

180 Payments to former occupants who were registered interest holders

Note : This section deals with payments to such former occupants of residential premises following the sale of the premises. The sale of premises includes--

(a) in the case where the former occupant was the registered proprietor of land, the owner of a lot in a strata scheme or the proprietor of a lot in a community land scheme and as such had a residence right in respect of residential premises--the sale of that land or interest in that land, and

(b) in the case where the former occupant was the owner of shares in a company title scheme that gave rise to a residence right in respect of residential premises-- the sale of that residence right (see section 4 (3)), and

(c) in the case where the former occupant's residence contract was in the form of a registered long term lease that included a provision that entitled the former occupant to at least 50% of any capital gain--the sale of that residence right (see section 150).

(1) This section applies to a former occupant of residential premises in a retirement village who is, or was, a registered interest holder in respect of the premises.

(1A) However, this section does not apply to a former occupant of residential premises in a retirement village who is, or was, a registered interest holder in respect of the premises if the Secretary makes an exit entitlement order for the former occupant under section 182AC.

(2) The operator of a retirement village must make any payment required to be made to the former occupant following the sale of the premises within 14 days after the earliest of the following--

(a) the date on which the operator receives full payment under a residence contract with an incoming resident of the premises,

(b) the date on which the operator enters into a village contract with an incoming resident of the premises,

(c) the date on which the operator enters into a residential tenancy agreement with an incoming tenant of the premises,

(d) the date on which a person takes up residence in the premises with the consent of the operator,

(e) if the operator buys the premises from the former occupant--the date on which the operator completes the purchase,

unless the contract between the operator and the former occupant provides for earlier payment.

: Maximum penalty--100 penalty units for a corporation or 50 penalty units for an individual.

(3) At the same time as the payment is made, the operator must give the former occupant a statement setting out the following and showing how the amounts were calculated--

(a) the departure fee, if any, payable by the former occupant,

(b) accrued or outstanding recurrent charges, if any, payable by the former occupant,

(c) any amount payable by the former occupant in relation to the sale of the residential premises concerned,

(d) any other amount payable by the former occupant under a village contract,

(e) in the case of a former occupant referred to in section 7 (1) (c)--the sale price of the premises,

(f) in the case of a former occupant who is required to pay for the cost of the refurbishment of his or her residential premises (as referred to in section 165)--the cost of that refurbishment,

(g) the amount of the payment to the former occupant.

: Maximum penalty--10 penalty units.

(4) If a payment is not made to the former occupant within the time required by subsection (2)--

(a) the former occupant may apply to the Tribunal for (and the Tribunal may make) an order directing the operator to make the payment, and

(b) interest is payable, at the rate prescribed by the regulations, on that unpaid amount on and from the date that the amount becomes overdue.

(5) If, in the opinion of the former occupant, the amount of a payment made under this section was not calculated in accordance with this Act or any relevant village contract, or the conduct of the operator has unfairly had a negative financial impact on the former occupant--

(a) the former occupant may apply to the Tribunal for (and the Tribunal may make) an order directing the operator to recalculate the amount in accordance with the directions of the Tribunal and pay any additional amount due to the former occupant as a result of the recalculation, and

(b) if the Tribunal considers it appropriate, the Tribunal may order the payment of interest on that additional amount at the rate prescribed by the regulations.

(6) Without limiting subsection (5), conduct of the operator that may unfairly have a negative impact on a former occupant includes entering into a village contract with a subsequent resident that contains terms that--

(a) are substantially different from those contained in the village contract to which the former occupant was a party, and

(b) will have a negative financial impact on the former occupant to the benefit of the operator.