Payment for renovations upon vacating premises
37H Payment for renovations upon vacating premises
A resident of a retirement village who delivers up vacant possession of premises in the retirement village is not required to—
renovate the premises; or
pay for the cost of renovation of the premises.
Subsection (1) does not apply if the resident enters into an agreement with the operator of the retirement village that specifies—
that the resident will share, in the same proportion—
the costs of the renovation of the premises; and
any capital gain or capital loss on the sale of the premises or the granting of a right to occupy premises; and
the date by which the renovation will be completed.
Example
Resident A is going to deliver up vacant possession of premises at a retirement village. Resident A and the operator of the retirement village agree to share the cost of renovating the premises. They agree that Resident A will pay 50% of the costs and receive 50% of any capital gain on the sale of the premises and be liable for 50% of any capital loss on the sale of the premises. They also agree on a date by which the renovation will be completed.
S. 37I inserted by No. 19/2025 s. 44.
This Act’s bill:Second reading speech
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