Ending of residence contract on grounds of upgrade or change of use
190 Ending of residence contract on grounds of upgrade or change of use
The ACAT may, on application by the operator of a retirement village, make an order ending a residence contract for residential premises in the village if satisfied that—
the operator intends to carry out substantial works to improve the village that requires vacant possession of the residential premises; or
it is appropriate that the land that the village is on should be used for a purpose other than a retirement village.
However, the ACAT must not make an order ending a residence contract unless also satisfied that—
the operator has given the resident at least 12 months written notice of the operator’s intention to apply to the ACAT for an order ending the residence contract; and
development approval and any other necessary approval to carry out the works or use the land for the other purpose have been obtained; and
the operator has obtained (or made available) for the resident alternative accommodation—
that is of approximately the same standard as, and requires no greater financial outlay on the part of the resident than, the residential premises the subject of the residence contract; and
that is acceptable to the resident or reasonably ought to be acceptable to the resident.
If the ACAT makes an order ending a residence contract, the ACAT—
must state in the order a day by when the resident must vacate the residential premises; and
must state in the order the penalty that the operator will incur if the works are not substantially commenced, or action to facilitate the use of the land for the other purpose not taken, within 6 months after the day mentioned in paragraph (a); and
may order the operator to allow the resident to return to the residential premises, under a contract identical to the contract being ended, on completion of the works; and
may make any other order (including an order that the operator pay to the resident compensation for the resident’s loss of rights under the residence contract) it considers appropriate.
Division 9.4 Ending of residence contract by Supreme Court on application of administrator
This Act’s bill:Explanatory statementSecond reading speech
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