Disclosure if credit contract for reverse mortgage does not protect tenancy of person other than debtor
18B Disclosure if credit contract for reverse mortgage does not protect tenancy of person other than debtor
This section applies if a proposed credit contract for a reverse mortgage does not include a provision (a tenancy protection provision) for a person other than the debtor to have a right against the credit provider to occupy the reverse mortgaged property.
A person must not provide a credit service relating to the contract unless the person has told the debtor, in writing in the form (if any) prescribed by the regulations, that the contract does not include a tenancy protection provision.
Criminal penalty: 50 penalty units.
Subsection (2) does not apply if the person is or will be the credit provider under the contract.
The credit provider must not enter into the contract unless the credit provider has told the debtor, in writing in the form (if any) prescribed by the regulations, that the contract does not include a tenancy protection provision.
Criminal penalty: 50 penalty units.
An offence against subsection (2) or (4) is an offence of strict liability.
For strict liability, see section 6.1 of the Criminal Code.
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