In July last year, the ABC’s 7.30 program reported on Lifestyle Wollert resident Geoff Gauci, who described his investment in the land lease community as “a financial prison”.
The show also reported 80 residents at the land lease community, 26km north of Melbourne’s CBD, had gone to the Victorian Civil and Administrative Tribunal (VCAT).
The residents are alleging their contracts are unfair and challenging the legality of the exit in light of a previous win in VCAT in 2018 and a series of settlements including a Consumer Action Law Centre action regarding another operator, Lifestyle Communities reports.
The Housing for the Aged Action Group (HAGG) believes charging exit fees on the sale of a house in Victoria is a breach of the legislation. They say it is illegal. HAAG allege under s206S of the Residential Tenancies Act, the charge has to be specified precisely.
“[A]t the time liability to pay the DMF arises the amount of the DMF (deferred management fees) is capable of calculation. However, when the Second Reading Speech is taken into account, section 206S(2) of the Act would be interpreted as requiring disclosure of the amount of the DMF before entry into the Lease.
“If the allegation is upheld, the DMF charged based on the future sale price of the dwelling would be inconsistent with the Act and would be deemed void pursuant to section 206F(3)(a) of the Act.”
Lifestyle Communities informed the ASX on 6 May that the President of the Victorian Civil and Administrative Tribunal, the Honourable Justice Woodward, conducted hearings on selected preliminary legal issues related to claims made against the private operator on 1 May and 5 May.
“The hearings of the submissions on those preliminary legal issues have concluded and President Justice Woodward reserved his decision. A written decision will be provided in due course,” Lifestyle Communities said.
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