The Government has moved to ensure that residents of freehold villages have the same protections from the 18 month compulsory buyback provisions as have been given to residents who lease or licence their units. The changes have been introduced to Parliament as part of yet another omnibus bill; the Health and Other Legislation Amendment Bill 2018.
This protection will be retrospective so that they are deemed to have commenced on the same date as those given to residents holding leasehold or licence tenure from 10 November 2017. The policy justification for the retrospectivity is the need to ensure the is equity between all retirement village residents.
There is only one minor amendment that will affect operators that lease or licence units. The Bill clarifies that s.104 which prescribes the obligations of a resident who has left the village to continue paying general services charges and maintenance reserve fund contributions, only applies where the lease or licence has been terminated. If a resident moves out of the village but the right to reside is not terminated, the resident will continue to be liable for these amounts as they were when living in the village.
If you would like more information about these proposed changes or the reform process which commenced in 2017 please contact us.