Retirement Villages Act 1986

If the first applicable entry payment has been paid for a right to occupy premises in a retirement village, there is created on the application date a charge to secure, applicable entry payments (whenever paid) on all retirement village land used for the purposes of that retirement village.

Subsection (1) has effect whether or not the charge is registered.

Subsection (1) does not apply if a charge has otherwise already been created.

If the first right to occupy premises in a retirement village is created after the commencement of this section the charge is a first charge on the retirement village land, and has priority over all encumbrances created or arising after the creation of the charge, or created or arising before the creation of the charge but after the retirement village notice in respect of the village is registered or recorded on the Register.

Retirement village land which is charged under this section continues to be liable to the charge despite any change in ownership, and the charge is enforceable against any proprietor for the time being of the land, whether or not that proprietor has notice of the charge.

On any date on which it is necessary to determine the amount of a charge in respect of a premises on retirement village land, the amount of the charge is the amount of the entry payment or that part of the entry payment paid by or on behalf of the resident of the premises that is repayable to the resident under the retirement village contracts, less any amount that has been repaid to the resident.

A reference in subsection (6) to a resident includes a reference to a resident who has delivered up vacant possession of the premises.

A certificate signed by a proprietor of retirement village land charged under this section or the proprietor's agent stating that at a particular date the amount of the charge is the amount specified in the certificate is prima facie evidence that on the date the amount of the charge is the amount so specified.

If asked by a resident an owner of land charged under this section or the owner's agent must give to the resident a certificate under subsection (7).

Within 14 days after land becomes subject to a charge under this Part, the owner of the land charged must lodge with the Registrar of Titles notification in a form approved by the Registrar of Titles of that charge and the land to be charged.

The Registrar of Titles may make a recording of the charge in the Register.

The interests and rights listed in section 42(2) of the Transfer of Land Act 1958 have priority over a charge.

An owner must not enter into a contract which creates or gives rise to a right to occupy premises in respect of which a charge would be created under this Part unless—

the owner has been released from or has discharged all encumbrances which would take priority to the charge, except those mentioned in section 42(2) of the Transfer of Land Act 1958; or

the holders of all encumbrances which would otherwise take priority to the charge have agreed with the owner that the charge will have first priority.

Subsection (14) does not apply to a retirement village in respect of which an owner entered into a contract before the commencement of this section which created or gave rise to a residence right as defined in section 3(1) of this Act immediately before the commencement of section 6(2)(l) of the Retirement Villages Amendment Act 2025.

In subsection (14) a reference to an encumbrance does not include a reference to a retirement village notice.