Retirement Villages Act 1999 No 81
Current version for 3 January 2014 to date (accessed 19 December 2014 at 10:06)
Part 5Division 2

Division 2 Settling-in period for residents

44A   Termination of village contract during settling-in period

(1)  A resident of a retirement village may terminate a village contract to which the resident is a party:
(a)  by permanently vacating the residential premises within the village, or
(b)  in the case of a contract other than a residence contract—by notice in writing to the operator of the retirement village indicating an intention to terminate the contract,
before the end of the settling-in period.
(2)  For the purposes of this Division, the end of the settling-in period means the later of:
(a)  the day that is 90 days after the date on which the resident is entitled to occupy the residential premises concerned under the residence contract for the premises, or
(b)  if the resident occupies the premises before the day specified in paragraph (a), the day that is 90 days after the resident first occupies the residential premises, or
(c)  such date as may be agreed to by the operator and the resident.
(3)  Nothing in this section requires a resident to occupy the residential premises before terminating a village contract under this section.
(4)  The termination of a village contract in accordance with this Division is not to be regarded as a breach of contract or otherwise as a civil wrong.

44B   Liability of former occupant if village contract terminated during settling-in period

(1)  If a village contract is terminated in accordance with this Division, the former occupant is only liable to pay:
(a)  fair market rent for the period (if any) that the former occupant occupied the residential premises under the contract, and
(b)  in the case of a village contract that is a residence contract, the cost of any repairs for damage to the residential premises in excess of fair wear and tear, and
(c)  a reasonable administration fee, and
(d)  such other amount as may be prescribed by the regulations.
(2)  Despite subsection (1), if the former occupant has not occupied the residential premises prior to terminating a village contract in accordance with this Division, the occupant is only liable to pay the cost of any repairs for damage to the residential premises in excess of fair wear and tear and a reasonable administration fee.
(3)  The amount that the former occupant is liable to pay under this section may be offset against any amounts that are to be refunded to the former occupant under section 44C.
(4)  An administration fee referred to in this section must not exceed the amount prescribed by the regulations.

44C   Operator to refund certain payments made by resident

If a village contract is terminated in accordance with this Division, the operator of the retirement village is to refund or pay to the former occupant:
(a)  in the case of a former occupant who is a registered interest holder (other than a person referred to in section 7 (1) (c))—the proceeds from the sale of the residential premises to which the resident is entitled under the village contract, and
(b)  in the case of any other former occupant—any ingoing contribution paid to the operator under the village contract, and
(c)  any recurrent charges paid to the operator under the village contract, and
(d)  such other amounts as may be prescribed by the regulations.

44D   Time for making of payments

(1)  Except as provided by subsection (2), a refund or payment under this Division is to be made within 14 days after the termination of the village contract or within such other period as the Tribunal may order.
(2)  A payment referred to in section 44C (a) or (b) that is to be made to a former occupant who was a registered interest holder is to be made within the period after the termination that is the same period as that required for a payment under section 180 (2) to a former occupant following the sale of premises.
(3)  If a payment that is required to be made under this Division is not paid within the time required by this section, the operator or former occupant may apply to the Tribunal for (and the Tribunal may make) an order requiring the amount to be paid within a specified time.
(4)  If the operator of a retirement village and a former occupant are unable to agree on an amount required to be paid under this Division, the operator or former occupant may apply to the Tribunal for (and the Tribunal may make) an order with respect to:
(a)  the amount of fair market rent (if any) required to be paid under section 44B (1) (a), or
(b)  what damage (if any) to the residential premises is in excess of fair wear and tear, and the amount (if any) required to be paid under section 44B (1) (b), or
(c)  the reasonable administration fee (if any) required to be paid under section 44B (1) (c).
(5)  The Tribunal may consider, but is not bound by, the rent (if any) specified in the village contract when determining the fair market rent for the purposes of making an order under subsection (4) (a).
(6)  The Tribunal may consider, but is not bound by, the administration fee (if any) specified in the village contract when determining a reasonable administration fee for the purposes of making an order under subsection (4) (c).

44E   Former occupant not required to pay certain amounts

If a village contract is terminated in accordance with this Division, the former occupant is not required to pay any of the following amounts that would, but for this section, be payable by the former occupant under that contract:
(a)  any recurrent charges,
(b)  any departure fee,
(c)  the cost of refurbishment within the meaning of Division 4 of Part 10,
(d)  the costs of sale or letting of the premises,
(e)  any amount specified in the village contract as being payable for terminating the contract during the settling-in period,
(f)  any amount prescribed by the regulations for the purposes of this section.
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