57Consequences of resident’s rescission of residence

57 Consequences of resident’s rescission of residence (1) A rescission notice given by a resident of a retirement village in relation to a residence contract is taken also to apply to the service contract and any other village contract entered into by the resident. (2) Each of the contracts mentioned in subsection (1) are void.

(3) As soon as practicable (but not later than 1 month) after a rescission notice that applies to a residence contract takes effect— (a) the operator of the village must repay all money paid by or on behalf of the resident under the residence contract; and (b) if the residence contract related to residential premises that are subject to a community title scheme, company title scheme or units plan and was rescinded under section 54 (Rescission of village contract on grounds relating to disclosure statement)— the resident must execute all instruments necessary to enable re-registration of— (i) for premises that are subject to a company title scheme— the shares; or (ii) in any other case—title in the name of the operator under the rescinded contract. (4) The ACAT may— (a) on the application of the resident—order the operator to comply with subsection (3) (a); and (b) on the application of the operator—order the resident to comply with subsection (3) (b). (5) Any fees or costs associated with a rescission during the cooling-off period are to be paid by the party incurring them. (6) Any fees or costs associated with a rescission at any other time (including registration fees) are payable by the operator, and the ACAT may, on the application of the resident, order the operator to make the payment. (7) If subsection (3) (b) applies to the resident, the ACAT may only make an order under subsection (6) if the resident has complied with subsection (3) (b).

(8) The resident is not liable to make any payment to the operator in relation to the rescinded contract unless ordered to do so by the ACAT. (9) Either party to a rescinded residence contract may make a claim to the ACAT for— (a) if the resident has received the benefit of possession of the residential premises the subject of the rescinded contract— compensation, adjustment or accounting that is just and equitable between the parties; or (b) damages, costs, or expenses arising out of a breach of any term, condition or warranty contained or implied in the contract (other than a term, condition or warranty mentioned in the Civil Law (Sale of Residential Property) Act 2003, section 11 (Certain conditions to be included in contract). (10) The ACAT must not make an order under subsection (9) that affects another right or obligation under this section. (11) This section has effect despite the Civil Law (Sale of Residential Property) Act 2003, section 12 to section 17. Note The Civil Law (Sale of Residential Property) Act 2003, ss 12 to 17 (the conveyancing provisions) provide (among other things) for a cooling-off period in relation to a contract for the sale of residential property (within the meaning of that Act) and allow the contract to be rescinded during that period. However, the rights and obligations of the parties under the conveyancing provisions differ from those under this section. The conveyancing provisions do not allow rescission after completion of the contract, and the buyer under the rescinded contract forfeits 0.25% of the purchase price to the seller. (12) In this section: cooling-off period—see section 53 (5).