Contractual restraints on alienation in retirement village contexts — including buy-back options at original purchase price and restrictions on disposal without operator consent — are enforceable where they serve the valid collateral purpose of providing housing for aged people, even where the restraints are extreme in nature. The applicable standard of public policy is that which exists at the time enforcement is sought, not when the contract was made. The Retirement Villages Act 1999 (NSW), s 167, specifically contemplates operators holding options to purchase, confirming the permissibility of such arrangements. The obiter statement of [name withheld] in Wollondilly v Picton Power Lines that restraints arising as incidents of personal contracts for sale or options fall outside the doctrine of restraints on alienation was not followed.
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