Retirement Villages Changes

Amendments to the Retirement Villages Act and Regulations, introduced under the Retirement Villages (Miscellaneous) Amendment Act 2005, will come into effect on 1 November 2006. 
Some of the most significant amendments include:

• Requiring residence contracts to comply with new requirements regarding contents and format as prescribed by the Regulations.  For example:
• operators will no longer need to give to residents the Checklist, Form 1 Notice to Prospective Resident of a Retirement Village or the Form 2 Disclosure Statement.  Instead, residence contracts must contain a conspicuous statement advising the residents to seek independent legal advice and setting out their cooling off rights.  Information currently required to be given under the Disclosure Statement will have to be incorporated into the contract;
• the residence contract must include procedures for dispute resolution including the right for a resident to be accompanied by a person of the resident’s choice at any meeting held to resolve the dispute;
• the premises condition report must specify the year in which any item in the residence is to be repaired or replaced;
• a new Code of Conduct must be given to the resident in place of the existing one.
• The “settling-in period” has been redefined as the period ending 90 days after the date of the contract or the date of first occupation, whichever is later (currently the “settling-period” is the earlier of 90 days from the date of first occupation or 180 days after the settlement date).  The new provisions preserve the ability of the parties to agree on a longer settling-in period.
• Refund of the premium is to be calculated from the “date of occupation”, namely the date on which the resident was given access to occupy the residence, and up to the “date of termination”, namely the date on which the resident ceases to reside in the retirement village.
• Refunds of the premium to an out-going resident must be made within 10 business days after the date of settlement on the residence by the in-coming resident (currently within 25 business days after the date of settlement).
• If a prospective resident decides not to enter into occupation of a residence, the premium (including deposit and registration of interest fee) must be refunded within 10 business days of the resident giving notice of that decision to the administering authority (currently such refunds are handled in accordance with the contract).
• Costs incurred by the administering authority in obtaining legal advice or undertaking legal proceedings relating to the retirement village cannot be charged to the residents without the residents’ approval given by special resolution.
• Costs for preparing and providing residence documents required under the Act cannot be charged to residents. 
• If a manager is employed to run the retirement village, each resident must be notified in writing of the manager’s name and contact details.
• A resident who is leaving the retirement village to move into an aged care facility will have up to 60 days after being approved for entry or leaving the village to apply for early refund of the premium (currently residents may only apply before leaving the retirement village or within 2 weeks after leaving the retirement village).  The administering authority will have to make the repayment within 60 days after receiving the application.  There is no provision for extension of that period.
• Administering authorities must consult with the residents regarding any proposed redevelopment to the retirement village.
• There is a new requirement for retirement villages to be registered.  Existing villages must be registered within 6 months after the amendments come into effect.  New villages must be registered within 28 days after the first person is admitted to occupation.

The above amendments will have a significant impact on the operation of retirement villages in South Australia.  Operators are well advised to familiarise themselves of their new obligations and must ensure that their residence contracts are compliant with the new requirements as at 1 November 2006. 

If you require assistance in this area or would like more information, please contact:

Maria Ho
SENIOR ASSOCIATE
Direct Line: (08) 8210 1274
e-mail: mho@normans.com.au  

Also in this issue

• State Budget Changes to “Land Rich” Stamp Duty Provisions
  by Johanna Churchill, Commercial Services
  
• Tree Preservation Prosecutions
  by Peter Kelso, Business and Property Services
  
• Retirement Villages Changes
  by Maria Ho, Commercial Services
• Employee Records – New Requirements
  by Cecilia White, Employment and Industrial Relations
  
• “To settle or not to settle?”
  by Daryl Cox , Commercial and Dispute Resolution
  
• “Constitutional corporations” and trusts – how far does Work Choices extend?
  by Amanda Green and Sharon Kelsey , Employment and Industrial Relations
• The Draft Local Government (Stormwater Management) Amendment Bill 2006
  by Felicity Niemann, Environment and Planning
  

What's Happening at Normans...

New Appointments

We are pleased to welcome these new members to the Norman Waterhouse Team:

• Nick Robertson – Associate, Environment and Planning
• Melanie Lynn – Conveyancer, Property, Infrastructure and Development
• Brooke McEvoy – Solicitor, Financial Services
• Maria Ho – Senior Associate, Commercial Services
• Damien Timms – Solicitor, Insurance, Trade and Transport Services
• Clifford To – Solicitor, Town Planning and Local Government Services.

We are pleased to announce the return of:

• Victoria Treloar – Senior Associate, Family Law
• Pierina (Rina) Reina – Senior Associate, Local Government and Environment and Planning Teams

Corporate Responsibility

• Congratulations to Ian McKnight
• National Trust Corporate Breakfast
• City to Bay Fun Run – Adelaide

• Local Government Managers Australia – SA Division Sponsorship
• Local Government Monthly Seminars – Upcoming and previous