Land lease buyers in lifestyle villages have been given more protection in changes to the Western Australia Residential Parks (Long-stay Tenants) Act 2006, which came into force last month.
The changes improve the security of long-stay tenancy agreements and promote fair and transparent arrangements between park operators and tenants.
These changes impact a number of areas ranging from the disclosure requirements that apply before a long-stay tenancy can start to how a tenancy can end.
The main changes:
- Prospective tenants interested in a site-only agreement must receive the pre-contract disclosure material at least five working days before signing the agreement.
- The inclusion of extra information within the pre-contract disclosure material.
- An ongoing requirement for operators to disclose information about anything that may affect a tenancy, such as the sale of the park.
- Operators will need to disclose voluntary sharing arrangements, such as exit fees or deferred rent arrangements, and provide examples of how this will apply to the tenant. There will also be rules around when voluntary sharing arrangements can be included in an agreement.
John Wood (pictured), Director of Business Development at Serenitas, and founder of National Lifestyle Villages and Providence Lifestyle Group, said the residents have been given more protection.
“I’m just in the middle of changing our standard forms to incorporate and take on board the new legislative changes, which ultimately just provide more certainty and protection for the residents that live in the communities,” he said.
