Minister Kobelke addresses concerns regarding invalid lease agreements at Lake Joondalup Lifestyle Village. The Commissioner for Fair Trading is working to secure valid leases or refunds for residents, with National Lifestyle Villages expressing willingness to cooperate.

AnsweredQoN 303Legislative Assembly
Asked
2 June 2004
Portfolio
Consumer and Employment Protection

QuestionView source ↗

Can the minister please update the House on the Department of Consumer and Employment Protection’s investigation into the lease agreements at Lake Joondalup Lifestyle Village? Mr J.C. KOBELKE

AnswerView source ↗

I thank the member for the question. I have received representations from a number of her constituents who are very concerned about the validity of leases at Lake Joondalup Lifestyle Village. I know they are appreciative of the representations that the member has made on their behalf. I have been advised that the Commissioner for Fair Trading has determined his position on this issue and has sent a letter to the residents outlining his position. It may have caused them further concern when they realised that some real difficulties need to be dealt with. The commissioner’s view, having received comprehensive legal advice on this issue, is that the residential site agreements entered into by the residents of the village are void; in other words, the agreements do not provide a legal right to live in the village. The commissioner has outlined his strategy to address the matter and to protect the rights of the residents by trying to obtain for them a valid lease agreement for a definite period. If this is not possible he will seek to uphold their rights for a refund of the purchase price that they paid to become residents at the village. It may also be open for them to get an additional sum, given that the value of their investment would have appreciated. Once the commissioner has obtained written consent from the residents, his approach will be to negotiate on their behalf with National Lifestyle Villages, which is the company responsible for the village, for new, valid lease agreements. I am advised that National Lifestyle Villages has indicated that it is willing to work with the commissioner, and I welcome this willingness. If the negotiations between the commissioner and National Lifestyle Villages are not successful, the commissioner will seek to proceed to court to uphold the interests and rights of the residents. I am hopeful, given the positive undertakings by National Lifestyle Villages, that agreement can be reached without the matter having to be dragged through the courts. However, this is a real issue of very great concern to the residents of the village. The Commissioner for Fair Trading has given a very clear undertaking that he will seek to represent their interests and resolve this matter in their favour.
Mr J.C. KOBELKE replied: I thank the member for the question. I have received representations from a number of her constituents who are very concerned about the validity of leases at Lake Joondalup Lifestyle Village. I know they are appreciative of the representations that the member has made on their behalf. I have been advised that the Commissioner for Fair Trading has determined his position on this issue and has sent a letter to the residents outlining his position. It may have caused them further concern when they realised that some real difficulties need to be dealt with. The commissioner’s view, having received comprehensive legal advice on this issue, is that the residential site agreements entered into by the residents of the village are void; in other words, the agreements do not provide a legal right to live in the village. The commissioner has outlined his strategy to address the matter and to protect the rights of the residents by trying to obtain for them a valid lease agreement for a definite period. If this is not possible he will seek to uphold their rights for a refund of the purchase price that they paid to become residents at the village. It may also be open for them to get an additional sum, given that the value of their investment would have appreciated. Once the commissioner has obtained written consent from the residents, his approach will be to negotiate on their behalf with National Lifestyle Villages, which is the company responsible for the village, for new, valid lease agreements. I am advised that National Lifestyle Villages has indicated that it is willing to work with the commissioner, and I welcome this willingness. If the negotiations between the commissioner and National Lifestyle Villages are not successful, the commissioner will seek to proceed to court to uphold the interests and rights of the residents. I am hopeful, given the positive undertakings by National Lifestyle Villages, that agreement can be reached without the matter having to be dragged through the courts. However, this is a real issue of very great concern to the residents of the village. The Commissioner for Fair Trading has given a very clear undertaking that he will seek to represent their interests and resolve this matter in their favour.
I thank the member for the question. I have received representations from a number of her constituents who are very concerned about the validity of leases at Lake Joondalup Lifestyle Village. I know they are appreciative of the representations that the member has made on their behalf. I have been advised that the Commissioner for Fair Trading has determined his position on this issue and has sent a letter to the residents outlining his position. It may have caused them further concern when they realised that some real difficulties need to be dealt with. The commissioner’s view, having received comprehensive legal advice on this issue, is that the residential site agreements entered into by the residents of the village are void; in other words, the agreements do not provide a legal right to live in the village. The commissioner has outlined his strategy to address the matter and to protect the rights of the residents by trying to obtain for them a valid lease agreement for a definite period. If this is not possible he will seek to uphold their rights for a refund of the purchase price that they paid to become residents at the village. It may also be open for them to get an additional sum, given that the value of their investment would have appreciated. Once the commissioner has obtained written consent from the residents, his approach will be to negotiate on their behalf with National Lifestyle Villages, which is the company responsible for the village, for new, valid lease agreements. I am advised that National Lifestyle Villages has indicated that it is willing to work with the commissioner, and I welcome this willingness. If the negotiations between the commissioner and National Lifestyle Villages are not successful, the commissioner will seek to proceed to court to uphold the interests and rights of the residents. I am hopeful, given the positive undertakings by National Lifestyle Villages, that agreement can be reached without the matter having to be dragged through the courts. However, this is a real issue of very great concern to the residents of the village. The Commissioner for Fair Trading has given a very clear undertaking that he will seek to represent their interests and resolve this matter in their favour.

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