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Retirement Villages (Amendment) Bill
Victorian Legislation and Parliamentary Documents
Introduction Print
EXPLANATORY MEMORANDUM
General
The primary purpose of the Bill is to amend the Retirement Villages Act
1986 ("the Act") in particular, in relation to the relationship between
residents and operators of retirement villages in Victoria.
Clause Notes
Clause 1 sets out the purposes of the Bill.
Clause 2 provides that the Bill comes into operation on a day or days to be
proclaimed. If a provision is not proclaimed before 1 August
2006, it will come into operation on that day.
Clause 3 inserts definitions in section 3 of the Act of "close associate",
"maintenance charge", "management complaint", "non-owner
resident", "owner resident", "personal services", "register",
"related body corporate", "residential care facility", "resident
dispute" and "Tribunal". It also amends or replaces the
definitions of "disclosure statement", "resident", "residence
documents", "residence right", "retirement village", "retirement
village land" and "retirement village notice". The definition of
"arbitrator" is repealed.
Clause 4 amends the references in section 9 of the Act to "retirement
village notice" to "notice" and provides that the notice must
contain the prescribed information.
Clause 5 substitutes for section 19 of the Act a provision requiring that the
owner or the owner's agent give the resident a copy of any
residence contract 21 days before the residence contract is
entered into and the manager must give the resident copies of any
management contract and other specified documents 21 days
before the management contract is entered into.
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551242 BILL LA INTRODUCTION 7/12/2004
Clause 6 substitutes "a question in the document described in paragraph (f)
of the definition of residence document" for "a question in Part 2
of the check list" in section 20(2) and inserts a reference to new
Victorian Legislation and Parliamentary Documents
section 21A in section 20(3).
Clause 7 inserts new sections 21A and 21B to make it an offence to use a
contract that does not comply the regulations, if required to do so,
and provides that any contract entered into after the
commencement of this provision is unenforceable against the
resident to the extent that it is inconsistent with any requirements
of the regulations.
Clause 8 substitutes for section 26(2) of the Act a provision specifying the
conditions to which an obligation to pay an amount recoverable
under section 26(1) may be made subject.
Clause 9 amends section 32 of the Act to provide for the extinguishment of
a charge over part of land made subject to a charge by operation
of the Act.
Clause 10 inserts a new Part 5A, which provides for a resident who owns a
residence in a retirement village to appoint an agent other than
the retirement village manager to sell that unit, conditional on the
purchaser entering into a management contract with the manager
of the retirement village.
Clause 11 repeals section 35 of the Act because disputes are now to be
resolved by means other than arbitration.
Clause 12 amends section 36 to provide that the role of a residents
committee in a dispute between residents is to be a mediator and
that a residents committee must not act as a mediator in a dispute
which is being dealt with by a manager.
Clause 13 inserts a new section 36A establishing a resident's right to
appoint a representative for meetings of residents or a residents
committee.
Clause 14 inserts a new part heading and division heading after section 37
of the Act.
Clause 15 repeals the definition of "maintenance charge" in section 38 of
the Act because it is being re-inserted in section 3 of the Act.
Clause 16 inserts new sections 38A to 38H and Parts 6B and 6C, dealing
with former residents' liability for charges after ceasing to be
residents, powers of attorney and proxies, dispute mediation,
payments to former owner residents, and the establishment of a
register of retirement villages.
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Clause 17 amends section 39 of the Act to provide for the cancellation of a
retirement village notice over part of land subject to such a notice
lodged under the Act.
Victorian Legislation and Parliamentary Documents
Clause 18 substitutes for sections 40 and 41 provisions applying certain
provisions of the Fair Trading Act 1999 as part of the Act and
specifying who may bring proceedings for an offence against the
Act or the regulations, and inserts new section 41A making it an
offence to supply false or misleading particulars to the Director
of Consumer Affairs Victoria.
Clause 19 inserts a new section 42A making void certain contractual
provisions providing for arbitration of management complaints or
resident disputes.
Clause 20 inserts additional regulation making powers into section 43 and
increases the maximum penalty that may attach to an offence
against the regulations from 5 penalty units to 20 penalty units.
Clause 21 inserts a new Part 8 setting out transitional arrangements.
Clause 22 repeals Schedule 1 because clause 4 makes alternative provision
for the retirement village notice.
Clause 23 repeals Schedule 2 because clause 3 makes alternative provision
for the disclosure statement.
Clause 24 repeals Schedule 3 because the amended definition of "residence
documents" makes alternative provision for a document
containing information that a person should consider before
deciding to become a resident of a retirement village.
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