Note to Scheme Operators - first day to settle buy-backs of freehold residences looming
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The Health and Other Legislation Amendment Act 2019 (Qld) (Amendment Act) was given assent on 11 April 2019.
You may recall from our article late last year that the Amendment Act amends the Retirement Villages Act 1999 (Qld) (Act) to confirm that the mandatory ‘buy-back’ provisions extend to residents with a freehold interest in a retirement village unit.
The buy-back provisions require scheme operators to enter into a contract to purchase a former resident’s freehold interest and complete the purchase within a certain time. The time for completion is the later of 18 months after the termination date, or if a resident has died, 14 days after the operator is shown the probate of the former resident’s will or letters of administration of the former resident’s estate.
The amendments apply retrospectively from November 2017, with the first 18-month buy-back period having expired on 10 May 2019. However, the Amendment Act provides a ‘grace period’ so that the earliest a buy-back transaction will be required to be settled is 23 May 2019. Scheme operators should carefully check their records to confirm when former residents terminated their rights to reside to ensure that this deadline is met in the event a former resident’s freehold interest has not been resold.
Scheme operators should also be aware of the following:
Should scheme operators require any more information or advice with respect to the above amendments, please contact Tracey Rundle or Ivan Orola from HopgoodGanim Lawyers’ Property team.