Queensland Consolidated Acts

RETIREMENT VILLAGES ACT 1999 - SECT 15

15 What is an exit fee

(1) An
"exit fee" is the amount that a resident may be liable to pay to, or credit the account of, a scheme operator under a residence contract arising from—

(a) the resident ceasing to reside in the accommodation unit to which the contract relates; or

(b) the settlement of the sale of the right to reside in the accommodation unit.

(2) The exit fee for a residence contract, including an existing residence contract, that a resident may be liable to pay to, or credit the account of, the scheme operator is to be calculated as at—

(a) the day the resident ceases to reside in the accommodation unit to which the residence contract relates; or

(b) if a relative of the resident resides in the accommodation unit under section 70B (2) —the sooner of the following days—

(i) the day the relative vacates the accommodation unit;

(ii) the day that is 3 months after the resident’s right to reside in the accommodation unit under the residence contract is terminated under this Act.

Notes—

1 Subsection (2) states the day at which the exit fee for a residence contract is to be worked out, and not the method of working out the exit fee.

2 Section 53A states how to work out the exit fee for a residence contract that is worked out under the contract having regard to the length of time the resident has resided in the unit.

(3) Subsection (2) applies despite anything to the contrary in an existing residence contract.

(4) In this section, a reference to a resident includes a reference to a person, other than a scheme operator, who enters into a residence contract for the purpose of giving someone else a right to reside in the retirement village.

Example for subsection (4)—

Mr Smith enters into a residence contract with a scheme operator which gives Mr Smith’s mother the right to reside in the retirement village. For this section, a reference to a resident includes not only Mr Smith’s mother who has a right to reside in the retirement village but also Mr Smith.