6Creation of residence rights

6 Creation of residence rights

(1)  A residence contract is to be in writing and comply with the requirements specified in Schedule 1 .

(2)  A residence contract may have effect notwithstanding Part 3 of the Local Government (Building and Miscellaneous Provisions) Act 1993 .

(3)  Before a person enters into a residence contract, the operator must give to that person –

(a) a copy of the proposed residence contract in a form ready for execution; and

(b) a notice of the person's rights under this Act in accordance with Schedule 2 ; and

(c) a copy of the village rules required under section 21 ; and

(d) a check list in accordance with Schedule 3 ; and

(e) a copy of the accounts and estimates presented at the last annual general meeting of residents and tenants, including a written statement of any subsequent change in the affairs of the retirement village and the operator that may significantly affect the person's decision to occupy residential premises in the retirement village; and

(f) any other prescribed documents.

(4)  If an operator is unable to comply with subsection (3)(e) because the retirement village was not operating at any time in the previous financial year, he or she must give to a person entering into a residence contract statements and information in accordance with section 14(5)(b) , (c) and (d) .

(5)  A representation made by an employee or agent of an operator is taken to be a representation of the operator unless the operator proves that the employee or agent was not acting in the course of his or her employment or agency.

(6)  If a residence contract is signed without provision of the documents referred to in subsection (3) or (4) , termination of the contract does not render the resident or prospective resident liable to any financial penalty.