A parliamentary question regarding National Lifestyle Villages' sales practices and consumer protection, with the Minister responding that the department hasn't imposed specific conditions but acknowledges consumer protection measures in place and sees potential public benefit in the current arrangement.

AnsweredQoN 789Legislative Council
Asked
19 October 2005
Portfolio
Consumer and Employment Protection

QuestionView source ↗

Under current lease terms being offered to prospective buyers of homes in National Lifestyle Villages Pty Ltd, the resident may not sell his village home in an on-site sale on his own behalf or allow any person other than the village owner - National Lifestyle Villages Pty Ltd - to act as the selling agent. (1) Will the minister inform the house of any conditions the Department of Consumer and Employment Protection has placed on National Lifestyle Villages Pty Ltd to protect the financial interests of those residents? (2) Does the Department of Consumer and Employment Protection believe that restricting sales in this way is to the benefit of the public? Hon JON FORD

AnswerView source ↗

I thank the member for some notice of this question. The minister has supplied the following answer - (1)-(2) The Department of Consumer and Employment Protection has not sought to impose on National Lifestyle Villages Pty Ltd any conditions regarding its right to act as selling agent in on-site sales of village homes. The terms on which NLV is engaged by a resident as selling agent is a matter for agreement between the private parties. The department can seek to impose conditions in circumstances in which the terms of that agreement are not in breach of the law. However, the department has, for example, taken note that the terms of the lease agreement for the Bridgewater Lifestyle Village include protecting the interests of consumers. For example, it includes a term requiring NLV to actively promote and pursue a sale and to distribute to the resident the net purchase price. Legal proceedings are able to be brought against NLV if those terms are breached. It needs to be kept in mind that the interest sold in these villages is not a fee simple estate in a house and land as per normal real estate transactions. All that is being sold is the village home itself, with the purchaser being able to apply to NLV for a lease over the relevant land. The nature of the interest held by the resident, the terms of the lease and the way in which these villages operate are all relatively complex. NLV has explained to the department that in the past relying on third parties to sell village homes has led to some confusion about the nature of the interest being purchased. The department is of the view that there is a public benefit in village homes being sold by the village owners, as they have a full understanding of the nature of an interest in the village and are the party liable to comply with any representations made to potential purchasers about the nature of an interest in the village.
(1) Will the minister inform the house of any conditions the Department of Consumer and Employment Protection has placed on National Lifestyle Villages Pty Ltd to protect the financial interests of those residents? (2) Does the Department of Consumer and Employment Protection believe that restricting sales in this way is to the benefit of the public? Hon JON FORD replied: I thank the member for some notice of this question. The minister has supplied the following answer - (1)-(2) The Department of Consumer and Employment Protection has not sought to impose on National Lifestyle Villages Pty Ltd any conditions regarding its right to act as selling agent in on-site sales of village homes. The terms on which NLV is engaged by a resident as selling agent is a matter for agreement between the private parties. The department can seek to impose conditions in circumstances in which the terms of that agreement are not in breach of the law. However, the department has, for example, taken note that the terms of the lease agreement for the Bridgewater Lifestyle Village include protecting the interests of consumers. For example, it includes a term requiring NLV to actively promote and pursue a sale and to distribute to the resident the net purchase price. Legal proceedings are able to be brought against NLV if those terms are breached. It needs to be kept in mind that the interest sold in these villages is not a fee simple estate in a house and land as per normal real estate transactions. All that is being sold is the village home itself, with the purchaser being able to apply to NLV for a lease over the relevant land. The nature of the interest held by the resident, the terms of the lease and the way in which these villages operate are all relatively complex. NLV has explained to the department that in the past relying on third parties to sell village homes has led to some confusion about the nature of the interest being purchased. The department is of the view that there is a public benefit in village homes being sold by the village owners, as they have a full understanding of the nature of an interest in the village and are the party liable to comply with any representations made to potential purchasers about the nature of an interest in the village.
(2) Does the Department of Consumer and Employment Protection believe that restricting sales in this way is to the benefit of the public? Hon JON FORD replied: I thank the member for some notice of this question. The minister has supplied the following answer - (1)-(2) The Department of Consumer and Employment Protection has not sought to impose on National Lifestyle Villages Pty Ltd any conditions regarding its right to act as selling agent in on-site sales of village homes. The terms on which NLV is engaged by a resident as selling agent is a matter for agreement between the private parties. The department can seek to impose conditions in circumstances in which the terms of that agreement are not in breach of the law. However, the department has, for example, taken note that the terms of the lease agreement for the Bridgewater Lifestyle Village include protecting the interests of consumers. For example, it includes a term requiring NLV to actively promote and pursue a sale and to distribute to the resident the net purchase price. Legal proceedings are able to be brought against NLV if those terms are breached. It needs to be kept in mind that the interest sold in these villages is not a fee simple estate in a house and land as per normal real estate transactions. All that is being sold is the village home itself, with the purchaser being able to apply to NLV for a lease over the relevant land. The nature of the interest held by the resident, the terms of the lease and the way in which these villages operate are all relatively complex. NLV has explained to the department that in the past relying on third parties to sell village homes has led to some confusion about the nature of the interest being purchased. The department is of the view that there is a public benefit in village homes being sold by the village owners, as they have a full understanding of the nature of an interest in the village and are the party liable to comply with any representations made to potential purchasers about the nature of an interest in the village.
Hon JON FORD replied: I thank the member for some notice of this question. The minister has supplied the following answer - (1)-(2) The Department of Consumer and Employment Protection has not sought to impose on National Lifestyle Villages Pty Ltd any conditions regarding its right to act as selling agent in on-site sales of village homes. The terms on which NLV is engaged by a resident as selling agent is a matter for agreement between the private parties. The department can seek to impose conditions in circumstances in which the terms of that agreement are not in breach of the law. However, the department has, for example, taken note that the terms of the lease agreement for the Bridgewater Lifestyle Village include protecting the interests of consumers. For example, it includes a term requiring NLV to actively promote and pursue a sale and to distribute to the resident the net purchase price. Legal proceedings are able to be brought against NLV if those terms are breached. It needs to be kept in mind that the interest sold in these villages is not a fee simple estate in a house and land as per normal real estate transactions. All that is being sold is the village home itself, with the purchaser being able to apply to NLV for a lease over the relevant land. The nature of the interest held by the resident, the terms of the lease and the way in which these villages operate are all relatively complex. NLV has explained to the department that in the past relying on third parties to sell village homes has led to some confusion about the nature of the interest being purchased. The department is of the view that there is a public benefit in village homes being sold by the village owners, as they have a full understanding of the nature of an interest in the village and are the party liable to comply with any representations made to potential purchasers about the nature of an interest in the village.
I thank the member for some notice of this question. The minister has supplied the following answer - (1)-(2) The Department of Consumer and Employment Protection has not sought to impose on National Lifestyle Villages Pty Ltd any conditions regarding its right to act as selling agent in on-site sales of village homes. The terms on which NLV is engaged by a resident as selling agent is a matter for agreement between the private parties. The department can seek to impose conditions in circumstances in which the terms of that agreement are not in breach of the law. However, the department has, for example, taken note that the terms of the lease agreement for the Bridgewater Lifestyle Village include protecting the interests of consumers. For example, it includes a term requiring NLV to actively promote and pursue a sale and to distribute to the resident the net purchase price. Legal proceedings are able to be brought against NLV if those terms are breached. It needs to be kept in mind that the interest sold in these villages is not a fee simple estate in a house and land as per normal real estate transactions. All that is being sold is the village home itself, with the purchaser being able to apply to NLV for a lease over the relevant land. The nature of the interest held by the resident, the terms of the lease and the way in which these villages operate are all relatively complex. NLV has explained to the department that in the past relying on third parties to sell village homes has led to some confusion about the nature of the interest being purchased. The department is of the view that there is a public benefit in village homes being sold by the village owners, as they have a full understanding of the nature of an interest in the village and are the party liable to comply with any representations made to potential purchasers about the nature of an interest in the village.
(1)-(2) The Department of Consumer and Employment Protection has not sought to impose on National Lifestyle Villages Pty Ltd any conditions regarding its right to act as selling agent in on-site sales of village homes. The terms on which NLV is engaged by a resident as selling agent is a matter for agreement between the private parties. The department can seek to impose conditions in circumstances in which the terms of that agreement are not in breach of the law. However, the department has, for example, taken note that the terms of the lease agreement for the Bridgewater Lifestyle Village include protecting the interests of consumers. For example, it includes a term requiring NLV to actively promote and pursue a sale and to distribute to the resident the net purchase price. Legal proceedings are able to be brought against NLV if those terms are breached. It needs to be kept in mind that the interest sold in these villages is not a fee simple estate in a house and land as per normal real estate transactions. All that is being sold is the village home itself, with the purchaser being able to apply to NLV for a lease over the relevant land. The nature of the interest held by the resident, the terms of the lease and the way in which these villages operate are all relatively complex. NLV has explained to the department that in the past relying on third parties to sell village homes has led to some confusion about the nature of the interest being purchased. The department is of the view that there is a public benefit in village homes being sold by the village owners, as they have a full understanding of the nature of an interest in the village and are the party liable to comply with any representations made to potential purchasers about the nature of an interest in the village.
It needs to be kept in mind that the interest sold in these villages is not a fee simple estate in a house and land as per normal real estate transactions. All that is being sold is the village home itself, with the purchaser being able to apply to NLV for a lease over the relevant land. The nature of the interest held by the resident, the terms of the lease and the way in which these villages operate are all relatively complex. NLV has explained to the department that in the past relying on third parties to sell village homes has led to some confusion about the nature of the interest being purchased. The department is of the view that there is a public benefit in village homes being sold by the village owners, as they have a full understanding of the nature of an interest in the village and are the party liable to comply with any representations made to potential purchasers about the nature of an interest in the village.

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