Retirement Villages Act 1992

In this section —

An ingoing contribution paid to an operator must be held in trust (in a bank account or invested as trust funds may be invested under Part III of the Trustees Act 1962) until —

the person by or on behalf of whom the ingoing contribution was paid —

enters into occupation of the residential premises; or

is entitled to enter into occupation of the residential premises and is no longer entitled to rescind the residence contract under section 14 because the applicable period referred to in that section has expired,

it becomes apparent that that person will not enter into occupation of the residential premises.

An operator commits an offence if —

an ingoing contribution is paid to the operator; and

the ingoing contribution is not held in trust or invested as required by subsection (1).

If the person by or on behalf of whom the ingoing contribution was paid does not enter into occupation of residential premises, any question affecting entitlement to or disposition of the ingoing contribution must be determined by reference to the residence contract subject to the following qualifications —

if the person’s failure to enter into occupation of residential premises is attributable to a failure on the part of the operator to carry out contractual obligations, interest and accretions arising from investment of the ingoing contribution must be paid to the person;

in any other case, the operator is entitled to retain any such interest and accretions.

An operator commits an offence if —

a question affecting entitlement to or disposition of the ingoing contribution is required by subsection (4) to be determined by reference to the residence contract and the operator fails to act in accordance with that requirement; or

interest and accretions arising from investment of the ingoing contribution are required by subsection (4)(a) to be paid to the person by or on behalf of whom the ingoing contribution was paid and the interest and accretions are not paid accordingly.