The 18 month compulsory buy-back for ‘strata units’ within Queensland retirement villages is currently before State Parliament.
The Queensland Government has moved to ensure that residents of freehold villages have the same protections from the 18-month compulsory buyback provisions as residents who lease or licence their units.
The changes have been introduced to Parliament as part of yet another omnibus bill – the Health and Other Legislation Amendment Bill 2018.
If passed, this protection will be retrospective from 10 November 2017 – the same date given to residents holding leasehold or licence tenure – to ensure equity between all retirement village residents.
LASA is opposed to forcing operators of ‘strata units’ to buy back the units after 18 months on the market. LASA believes that in a strata arrangement the sale is between the seller and the buyer, and operators should not be involved in a contract where the resident sets their price and takes 100 per cent of the profits.
There is only one minor amendment that will affect operators utilising loan/licence contracts.
The Bill clarifies that s.104 which prescribes the obligations of a resident who has left the village to continue paying general services charges and maintenance reserve fund contributions, only applies where the lease or licence has been terminated.
If a resident moves out of the village but the right to reside is not terminated, the resident will continue to be liable for these amounts as they were when living in the village.