8Prohibited terms of site agreement

#### 8 Prohibited terms of site agreement 8 Prohibited terms of site agreement > > (1) The following types of terms are prohibited in a site agreement— > > > > > (a) a term for, or with respect to, the indemnification of the operator or owner of the community against any liability (including vicarious liability) of the operator or owner for damage, loss or injury arising from an act or omission of the operator or owner (or the operator’s or owner’s employees or agents) in relation to the occupation or use of the residential site, > > > > > (b) a term requiring the home owner who is a party to the agreement to take out any form of insurance, other than a term permitted by subclause (2), > > > > > (c) a term providing that, if the home owner breaches the agreement, the home owner is liable to pay— > > > > > > > (i) an increased amount of site fees (or other charges payable by the home owner under the agreement), or > > > > > > > (ii) any amount as a penalty, or > > > > > > > (iii) any amount as liquidated damages, > > > > > (d) a term providing that, if the home owner does not breach the site agreement— > > > > > > > (i) site fees (or other charges payable by the home owner under the agreement) are or may be reduced, or > > > > > > > (ii) the home owner is to be or may be paid a rebate of site fees (or other charges payable by the home owner under the agreement) or other benefit. > > > (2) For the purposes of subclause (1) (b), a term requiring a home to be insured is permitted in a site agreement if— > > > > > (a) the site agreement provides for a voluntary sharing arrangement only of a kind referred to in section 110 (2) (c) of the Act, and > > > > > (b) the term requires the operator to share the cost of the insurance with the home owner in the same proportion as the capital gain is shared, or as the on-site premium is calculated in relation to the total sale price, as the case requires. > > > (3) A reference in this clause to a home owner includes a reference to a prospective home owner.