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RETIREMENT VILLAGES (MISCELLANEOUS) AMENDMENT ACT 2005 (NO 67 OF 2005) - SECT 7

7—Substitution of section 6

Section 6—delete the section and substitute:

Division 1—Creation and exercise of residents' rights

6—Residence contracts

        (1)         A residence contract must be in writing and comply with this section and the requirements (if any) prescribed by the regulations.

        (2)         The residence contract must include the following information:

            (a)         details about the residence in respect of which the person is entering the contract;

            (b)         details about the resident's rights and obligations created by or under the contract, including—

                  (i)         the right to cool-off (that is, to rescind the contract and not proceed with becoming a resident in the retirement village);

                  (ii)         the right to occupation of the residence;

                  (iii)         recurrent charges for which the resident is liable;

                  (iv)         additional services and facilities available to residents of the retirement village and the costs of those services and facilities;

                  (v)         the right to terminate the right to occupation of the residence and receive a refund of the premium paid;

                  (vi)         dispute resolution processes;

                  (vii)         any other details prescribed by the regulations.

        (3)         The administering authority must, before a person enters into a residence contract, give the person a copy of each of the following documents:

            (a)         the contract;

            (b)         if the contract relates to a retirement village already established—the financial statements presented at the last annual general meeting of residents of the village in accordance with section 10(5)(a), including a written statement of any subsequent change in the affairs of the village and the administering authority that may significantly affect the resident's decision to enter the village;

            (c)         the detailed report providing information about—

                  (i)         the condition, as at the date of the contract, of the fixtures, fittings and furnishings (an "item") provided in the residence; and

                  (ii)         who will be responsible for repairing or replacing an item; and

                  (iii)         when an item is due to be repaired or replaced; and

                  (iv)         how the cost of repairing or replacing an item is to be funded,

(the "premises condition report");

            (d)         the residence rules;

            (e)         the policy of the administering authority to be applied for the remarketing of residences (the "remarketing policy");

            (f)         any code of conduct to be observed by the administering authority;

            (g)         any other document prescribed by the regulations.

        (4)         A residence contract will be taken to include a warranty on the part of the administering authority of the correctness of the information contained in the documents provided under subsection (3) (subject to any written alteration made by the administering authority with the consent of the resident on or before the signing of the contract by the administering authority), and that warranty prevails over any inconsistent contractual term unless the resident elects to rely on the contractual term rather than the statement (and then the contractual term will prevail to the extent of any inconsistency).

        (5)         An administering authority must not, without the approval of the Minister—

            (a)         make a representation to a prospective resident that is inconsistent with information given to the prospective resident under subsection (2) or (3); or

            (b)         give information to a prospective resident under subsection (2) or (3) that is inconsistent with a representation made by the administering authority to the prospective resident.

        (6)         For the purposes of subsection (5), a representation made by an employee or agent of an administering authority will be taken to be a representation of the administering authority unless the administering authority proves that the person was not acting in the course of his or her employment or agency.

        (7)         A resident or prospective resident is entitled to rescind the residence contract—

            (a)         at any time within 15 business days after the date of the contract; or

            (b)         if subsection (3) is not complied with—at any time before the expiration of 15 business days after the date on which the last of the documents required to be given to the resident or prospective resident under that subsection is so given.

        (8)         A contract is rescinded under this section by notice in writing, given personally or by post, to the administering authority.

        (9)         If a provision of this section is not observed, the administering authority is guilty of an offence.

Maximum penalty: $35 000.

        (10)         A residence contract may be enforced against the administering authority for the time being of the retirement village.



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