10Contractual rights of residents

10 Contractual rights of residents

(1)  A service contract may be enforced against the operator of a retirement village.

(2)  Where an ingoing contribution is paid under a residence contract which provides that it will be repaid in whole or in part on the happening of a contingency and the contingency occurs, the resident or a person claiming under the residence contract may recover the amount that is repayable as a debt from the operator of the retirement village.

(3)  An action does not lie against the owner of land in a retirement village for the enforcement of rights under subsection (1) or (2) unless –

(a) the owner is a party to the contract under which the ingoing contribution is repayable; or

(b) the owner is the sole operator of the retirement village; or

(c) an operator other than the owner has failed to satisfy a judgment given for the enforcement of those rights.

(4)  The rights of a resident to repayment of an ingoing contribution, or part of an ingoing contribution, are a charge on land in the retirement village other than –

(a) any residential premises owned by a resident; or

(b) common property that is subject to a strata scheme.

(5)  A charge referred to in subsection (4) may be enforced only with the approval of the Supreme Court and subject to any conditions that the Court thinks just and equitable.

(6)  If the Supreme Court approves the enforcement of the charge, it may, subject to any conditions imposed by the Court, be enforced in the same way as a mortgage registered under the Land Titles Act 1980 .