New South Wales Consolidated Acts

RESIDENTIAL (LAND LEASE) COMMUNITIES ACT 2013 - SECT 111

111 Restrictions on voluntary sharing arrangements

(1) An operator of a community must not enter into a site agreement that contains a voluntary sharing arrangement if the offer of a rent only site agreement is required unless, before entering into the agreement--

(a) the operator informs the person that the person may instead enter into a rent only site agreement with the operator, and

(b) the operator offers (as an alternative) to enter into a rent only site agreement with the person.

(2) The offer of a rent only site agreement is required if--

(a) the site agreement is to be entered into in connection with the sale of a home on the residential site, and the seller is not the operator of the community (or a close associate of the operator), or

(b) the site agreement is to be entered into with an existing home owner, being a person who is currently, or has previously been, a party to a site agreement relating to the residential site.

(3) A
"rent only site agreement" is a site agreement under which the site fees charged do not exceed fair market value and which does not contain any voluntary sharing arrangement.

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

(a) the site fees currently payable by the home owner occupying the residential site,

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

(5) A site agreement that contains a voluntary sharing arrangement must, if entered into when the offer of a rent only site agreement is required, include--

(a) a declaration, signed by each party, that verifies that a rent only site agreement was offered to the home owner or prospective home owner by the operator and the offer was declined, and

(b) a declaration, signed by the home owner or prospective home owner, that the home owner or prospective home owner--

(i) obtained independent advice about the voluntary sharing arrangement before entering into the site agreement, or

(ii) waived the home owner's or prospective home owner's right to obtain independent advice about the voluntary sharing arrangement.

(6) A voluntary sharing arrangement in a site agreement is void if this section is contravened.

(7) In this section--

"voluntary sharing arrangement" has the meaning given by section 110.