New South Wales Consolidated Acts

RESIDENTIAL (LAND LEASE) COMMUNITIES ACT 2013 - SECT 34E

34E Requirements for entering into voluntary sharing arrangements

(1) The operator of a community must not enter into a VSA site agreement with a person (the
"contracting party" ) unless the operator first offers to instead enter into a rent only site agreement with the contracting party.

(2) Before entering into the VSA site agreement with the contracting party, the operator of the community must--

(a) provide the contracting party with written information regarding the costs under a VSA site agreement compared with the costs under a rent only site agreement, and

(b) advise the contracting party to seek independent advice about the voluntary sharing arrangement included in the proposed VSA site agreement.

(3) The VSA site agreement must include--

(a) a declaration, signed by both parties to the agreement, that the operator of the community offered to instead enter into a rent only site agreement with the contracting party and the contracting party declined the offer to enter into the rent only site agreement, and

(b) a declaration, signed by the contracting party, that the contracting party--

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

(ii) waived the contracting party's right to obtain independent advice about the voluntary sharing arrangement included in the VSA site agreement before entering into the VSA site agreement.

(4) The voluntary sharing arrangement is void if this section is contravened.

(5) The regulations may prescribe information, or the kinds of information, that must be provided to the contracting party under subsection (2)(a).

(6) In this section--

"fair market value" means 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 same community.

"rent only site agreement" means a site agreement--

(a) that does not include a voluntary sharing arrangement, and

(b) under which the site fees payable do not exceed fair market value.