In New South Wales as from 1 October 2013 operators of villages
which are administered under the Act must use a prescribed form of
contract when admitting new residents.
The aim of the new contract is to include more information
upfront for residents covering:
whether the resident is acquiring an interest in land, a lease,
a licence or some other type of interest in the village;
all the costs that the resident must pay to enter the village,
to remain in the village and to leave the village;
whether or not the resident will share any 'capital
gain' in the value of the 'apartment' or 'unit'
realised during the period of occupancy;
whether a settle in period is available after which the
resident could leave without penalty;
a clear indication of the types of services (for example
podiatry, physiotherapy, hairdressing, occupational therapy) and
facilities (for example common room, swimming pool, community bus,
resident nurse, vital call, library) which are available;
if any building works or redecorating or alterations are to be
what maintenance is to be provided by the operator compared to
what maintenance is to be done by the resident.
In addition to the new form of contract, the following two
documents have also been prescribed:
the general enquiry document which is a summary of village
management matters; and
the disclosure statement to replace the old form disclosure
statement and to have a simpler layout.
The design of the new contract allows individual operators to
add special clauses in a schedule at the end of the prescribed
form. All operators should be reviewing their existing contracts
and identifying any particular clauses they use which are not in
the prescribed form and are compliant with the Act, so that they
can be drafted for the annexure.
link to NSW Fair Trading provided here takes you to the set of
prescribed documents which are available on that website.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The Sportscraft refunds and returns policy limitations went beyond consumer's rights under the Australian Consumer Law.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).