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.