There has been some recent press attention to Land Lease Parks in Victoria which has been critical of the industry.
Land Lease Parks are more commonly described as “Over 50s Resorts” and involve the ownership of a house which is located on land that is rented.
One thing that must be borne in mind is that the legislation for these parks (as with Retirement Villages) varies state by state, and what applies in one state does not necessarily apply in another.
In Queensland we have specific legislation that deals with Land Lease Communities (Manufactured Homes Act) and Retirement Villages (Retirement Villages Act). It appears that in Victoria there is no dedicated legislation dealing with Land Lease Parks, which come under their Residential Tenancies Act. In that regard the Queensland position is clearly superior.
The purchase of a home in an Over 50s Resort, or a unit in a Retirement Village is a significant investment and should not be treated lightly. Contracts for purchases of these homes or units are complex, often running to over 100 pages. The transaction is very different to the normal “buy/sell” conveyancing that people are used to in relation to a home in the suburbs. There is no “one size fits all” and contracts vary from Operator to Operator, Park to Park, Village to Village. Engaging Specialist advice is essential, rather than using a general conveyancer.
To facilitate these purchases the Qld Government rolled out specific legislation over the period 2018 to 2020 to regularise the industry in a way that made purchases more transparent and to allow comparison more easily between different options. The industry continues to be under review, and legislation is updated progressively. From the press reports it seems that the Victorian situation is significantly inferior in relation to buyer protection.
Having advised on over 200 such contracts we ensure that clients make informed decisions, fully understand what they are signing up for, and what they are committed to, both going in, during, and upon exit.
Brisbane Elder Law are specialists in Retirement Villages and Over 50s Resorts. Contact them on 1800961622 or visit www.brisbaneelderlaw.com.au
