❓ A WA parliamentary question addresses whether retirement village resident funds can be used for new developments and what protections exist if a development fails. The Minister clarifies trust arrangements and safeguards under the Retirement Villages Act 1992.
AnsweredQoN 765Legislative Council
QuestionView source ↗
(1) Will the minister inform the house whether it is possible for money held in trust for residents of a retirement village to be used to develop new retirement villages? (2) If yes to (1), what restrictions are in place to protect the funds of retirees should a development fail? Hon JON FORD
AnswerView source ↗
I thank the member for some notice of this question. The Minister for Consumer and Employment Protection has supplied the following answer - (1) Any moneys held in trust cannot be applied by the trustee other than in accordance with the terms of the trust or law. In the case of a retirement village, the owner of the village commonly holds premium moneys paid by residents for entry into the village. At the end of a resident’s residency, those moneys or part of them are returned to the resident or to the resident’s estate if the resident has passed away. Villages differ in whether a resident’s money is held in trust during his residency. Unless the agreement between the resident and the owner provides for premium moneys to be held in trust or such an arrangement comes into existence by operation of law, premium moneys are not held in trust. In such circumstances, the owner may use the money for any lawful purpose, including the development of new retirement villages. For example, in the case of an incorporated association, the lawful purposes are usually identified in the association’s constitution. (2) A number of safeguards are provided by the Retirement Villages Act 1992 that operate to protect residents’ legal rights in their occupation of a retirement village and the return of their premium moneys upon vacation. These safeguards apply whether or not a trust is in place. Section 15(3) of the act requires that the owner of the village lodge a memorial with the Registrar of Titles, the effect of which is that the land can be used only for retirement village purposes. Section 17 of the act makes residents’ contracts binding on an owner’s successors in title and limits the circumstances under which residents’ contracts can be terminated. Section 21 of the act gives residents a charge over the land on which the retirement village is located. Significantly, that charge takes priority over other interests that may be registered on the title to the land, including mortgages. Even if there is a change of ownership of the land, the land remains so charged - section 20(5) of the act. Section 22 of the act prevents the termination of any retirement village scheme while a person remains in occupation unless the Supreme Court approves of the termination on terms it thinks fit, including the terms of the protection of residents’ interest.
(2) If yes to (1), what restrictions are in place to protect the funds of retirees should a development fail? Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Consumer and Employment Protection has supplied the following answer - (1) Any moneys held in trust cannot be applied by the trustee other than in accordance with the terms of the trust or law. In the case of a retirement village, the owner of the village commonly holds premium moneys paid by residents for entry into the village. At the end of a resident’s residency, those moneys or part of them are returned to the resident or to the resident’s estate if the resident has passed away. Villages differ in whether a resident’s money is held in trust during his residency. Unless the agreement between the resident and the owner provides for premium moneys to be held in trust or such an arrangement comes into existence by operation of law, premium moneys are not held in trust. In such circumstances, the owner may use the money for any lawful purpose, including the development of new retirement villages. For example, in the case of an incorporated association, the lawful purposes are usually identified in the association’s constitution. (2) A number of safeguards are provided by the Retirement Villages Act 1992 that operate to protect residents’ legal rights in their occupation of a retirement village and the return of their premium moneys upon vacation. These safeguards apply whether or not a trust is in place. Section 15(3) of the act requires that the owner of the village lodge a memorial with the Registrar of Titles, the effect of which is that the land can be used only for retirement village purposes. Section 17 of the act makes residents’ contracts binding on an owner’s successors in title and limits the circumstances under which residents’ contracts can be terminated. Section 21 of the act gives residents a charge over the land on which the retirement village is located. Significantly, that charge takes priority over other interests that may be registered on the title to the land, including mortgages. Even if there is a change of ownership of the land, the land remains so charged - section 20(5) of the act. Section 22 of the act prevents the termination of any retirement village scheme while a person remains in occupation unless the Supreme Court approves of the termination on terms it thinks fit, including the terms of the protection of residents’ interest.
Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Consumer and Employment Protection has supplied the following answer - (1) Any moneys held in trust cannot be applied by the trustee other than in accordance with the terms of the trust or law. In the case of a retirement village, the owner of the village commonly holds premium moneys paid by residents for entry into the village. At the end of a resident’s residency, those moneys or part of them are returned to the resident or to the resident’s estate if the resident has passed away. Villages differ in whether a resident’s money is held in trust during his residency. Unless the agreement between the resident and the owner provides for premium moneys to be held in trust or such an arrangement comes into existence by operation of law, premium moneys are not held in trust. In such circumstances, the owner may use the money for any lawful purpose, including the development of new retirement villages. For example, in the case of an incorporated association, the lawful purposes are usually identified in the association’s constitution. (2) A number of safeguards are provided by the Retirement Villages Act 1992 that operate to protect residents’ legal rights in their occupation of a retirement village and the return of their premium moneys upon vacation. These safeguards apply whether or not a trust is in place. Section 15(3) of the act requires that the owner of the village lodge a memorial with the Registrar of Titles, the effect of which is that the land can be used only for retirement village purposes. Section 17 of the act makes residents’ contracts binding on an owner’s successors in title and limits the circumstances under which residents’ contracts can be terminated. Section 21 of the act gives residents a charge over the land on which the retirement village is located. Significantly, that charge takes priority over other interests that may be registered on the title to the land, including mortgages. Even if there is a change of ownership of the land, the land remains so charged - section 20(5) of the act. Section 22 of the act prevents the termination of any retirement village scheme while a person remains in occupation unless the Supreme Court approves of the termination on terms it thinks fit, including the terms of the protection of residents’ interest.
I thank the member for some notice of this question. The Minister for Consumer and Employment Protection has supplied the following answer - (1) Any moneys held in trust cannot be applied by the trustee other than in accordance with the terms of the trust or law. In the case of a retirement village, the owner of the village commonly holds premium moneys paid by residents for entry into the village. At the end of a resident’s residency, those moneys or part of them are returned to the resident or to the resident’s estate if the resident has passed away. Villages differ in whether a resident’s money is held in trust during his residency. Unless the agreement between the resident and the owner provides for premium moneys to be held in trust or such an arrangement comes into existence by operation of law, premium moneys are not held in trust. In such circumstances, the owner may use the money for any lawful purpose, including the development of new retirement villages. For example, in the case of an incorporated association, the lawful purposes are usually identified in the association’s constitution. (2) A number of safeguards are provided by the Retirement Villages Act 1992 that operate to protect residents’ legal rights in their occupation of a retirement village and the return of their premium moneys upon vacation. These safeguards apply whether or not a trust is in place. Section 15(3) of the act requires that the owner of the village lodge a memorial with the Registrar of Titles, the effect of which is that the land can be used only for retirement village purposes. Section 17 of the act makes residents’ contracts binding on an owner’s successors in title and limits the circumstances under which residents’ contracts can be terminated. Section 21 of the act gives residents a charge over the land on which the retirement village is located. Significantly, that charge takes priority over other interests that may be registered on the title to the land, including mortgages. Even if there is a change of ownership of the land, the land remains so charged - section 20(5) of the act. Section 22 of the act prevents the termination of any retirement village scheme while a person remains in occupation unless the Supreme Court approves of the termination on terms it thinks fit, including the terms of the protection of residents’ interest.
(1) Any moneys held in trust cannot be applied by the trustee other than in accordance with the terms of the trust or law. In the case of a retirement village, the owner of the village commonly holds premium moneys paid by residents for entry into the village. At the end of a resident’s residency, those moneys or part of them are returned to the resident or to the resident’s estate if the resident has passed away. Villages differ in whether a resident’s money is held in trust during his residency. Unless the agreement between the resident and the owner provides for premium moneys to be held in trust or such an arrangement comes into existence by operation of law, premium moneys are not held in trust. In such circumstances, the owner may use the money for any lawful purpose, including the development of new retirement villages. For example, in the case of an incorporated association, the lawful purposes are usually identified in the association’s constitution. (2) A number of safeguards are provided by the Retirement Villages Act 1992 that operate to protect residents’ legal rights in their occupation of a retirement village and the return of their premium moneys upon vacation. These safeguards apply whether or not a trust is in place. Section 15(3) of the act requires that the owner of the village lodge a memorial with the Registrar of Titles, the effect of which is that the land can be used only for retirement village purposes. Section 17 of the act makes residents’ contracts binding on an owner’s successors in title and limits the circumstances under which residents’ contracts can be terminated. Section 21 of the act gives residents a charge over the land on which the retirement village is located. Significantly, that charge takes priority over other interests that may be registered on the title to the land, including mortgages. Even if there is a change of ownership of the land, the land remains so charged - section 20(5) of the act. Section 22 of the act prevents the termination of any retirement village scheme while a person remains in occupation unless the Supreme Court approves of the termination on terms it thinks fit, including the terms of the protection of residents’ interest.
(2) A number of safeguards are provided by the Retirement Villages Act 1992 that operate to protect residents’ legal rights in their occupation of a retirement village and the return of their premium moneys upon vacation. These safeguards apply whether or not a trust is in place. Section 15(3) of the act requires that the owner of the village lodge a memorial with the Registrar of Titles, the effect of which is that the land can be used only for retirement village purposes. Section 17 of the act makes residents’ contracts binding on an owner’s successors in title and limits the circumstances under which residents’ contracts can be terminated. Section 21 of the act gives residents a charge over the land on which the retirement village is located. Significantly, that charge takes priority over other interests that may be registered on the title to the land, including mortgages. Even if there is a change of ownership of the land, the land remains so charged - section 20(5) of the act. Section 22 of the act prevents the termination of any retirement village scheme while a person remains in occupation unless the Supreme Court approves of the termination on terms it thinks fit, including the terms of the protection of residents’ interest.
(2) If yes to (1), what restrictions are in place to protect the funds of retirees should a development fail? Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Consumer and Employment Protection has supplied the following answer - (1) Any moneys held in trust cannot be applied by the trustee other than in accordance with the terms of the trust or law. In the case of a retirement village, the owner of the village commonly holds premium moneys paid by residents for entry into the village. At the end of a resident’s residency, those moneys or part of them are returned to the resident or to the resident’s estate if the resident has passed away. Villages differ in whether a resident’s money is held in trust during his residency. Unless the agreement between the resident and the owner provides for premium moneys to be held in trust or such an arrangement comes into existence by operation of law, premium moneys are not held in trust. In such circumstances, the owner may use the money for any lawful purpose, including the development of new retirement villages. For example, in the case of an incorporated association, the lawful purposes are usually identified in the association’s constitution. (2) A number of safeguards are provided by the Retirement Villages Act 1992 that operate to protect residents’ legal rights in their occupation of a retirement village and the return of their premium moneys upon vacation. These safeguards apply whether or not a trust is in place. Section 15(3) of the act requires that the owner of the village lodge a memorial with the Registrar of Titles, the effect of which is that the land can be used only for retirement village purposes. Section 17 of the act makes residents’ contracts binding on an owner’s successors in title and limits the circumstances under which residents’ contracts can be terminated. Section 21 of the act gives residents a charge over the land on which the retirement village is located. Significantly, that charge takes priority over other interests that may be registered on the title to the land, including mortgages. Even if there is a change of ownership of the land, the land remains so charged - section 20(5) of the act. Section 22 of the act prevents the termination of any retirement village scheme while a person remains in occupation unless the Supreme Court approves of the termination on terms it thinks fit, including the terms of the protection of residents’ interest.
Hon JON FORD replied: I thank the member for some notice of this question. The Minister for Consumer and Employment Protection has supplied the following answer - (1) Any moneys held in trust cannot be applied by the trustee other than in accordance with the terms of the trust or law. In the case of a retirement village, the owner of the village commonly holds premium moneys paid by residents for entry into the village. At the end of a resident’s residency, those moneys or part of them are returned to the resident or to the resident’s estate if the resident has passed away. Villages differ in whether a resident’s money is held in trust during his residency. Unless the agreement between the resident and the owner provides for premium moneys to be held in trust or such an arrangement comes into existence by operation of law, premium moneys are not held in trust. In such circumstances, the owner may use the money for any lawful purpose, including the development of new retirement villages. For example, in the case of an incorporated association, the lawful purposes are usually identified in the association’s constitution. (2) A number of safeguards are provided by the Retirement Villages Act 1992 that operate to protect residents’ legal rights in their occupation of a retirement village and the return of their premium moneys upon vacation. These safeguards apply whether or not a trust is in place. Section 15(3) of the act requires that the owner of the village lodge a memorial with the Registrar of Titles, the effect of which is that the land can be used only for retirement village purposes. Section 17 of the act makes residents’ contracts binding on an owner’s successors in title and limits the circumstances under which residents’ contracts can be terminated. Section 21 of the act gives residents a charge over the land on which the retirement village is located. Significantly, that charge takes priority over other interests that may be registered on the title to the land, including mortgages. Even if there is a change of ownership of the land, the land remains so charged - section 20(5) of the act. Section 22 of the act prevents the termination of any retirement village scheme while a person remains in occupation unless the Supreme Court approves of the termination on terms it thinks fit, including the terms of the protection of residents’ interest.
I thank the member for some notice of this question. The Minister for Consumer and Employment Protection has supplied the following answer - (1) Any moneys held in trust cannot be applied by the trustee other than in accordance with the terms of the trust or law. In the case of a retirement village, the owner of the village commonly holds premium moneys paid by residents for entry into the village. At the end of a resident’s residency, those moneys or part of them are returned to the resident or to the resident’s estate if the resident has passed away. Villages differ in whether a resident’s money is held in trust during his residency. Unless the agreement between the resident and the owner provides for premium moneys to be held in trust or such an arrangement comes into existence by operation of law, premium moneys are not held in trust. In such circumstances, the owner may use the money for any lawful purpose, including the development of new retirement villages. For example, in the case of an incorporated association, the lawful purposes are usually identified in the association’s constitution. (2) A number of safeguards are provided by the Retirement Villages Act 1992 that operate to protect residents’ legal rights in their occupation of a retirement village and the return of their premium moneys upon vacation. These safeguards apply whether or not a trust is in place. Section 15(3) of the act requires that the owner of the village lodge a memorial with the Registrar of Titles, the effect of which is that the land can be used only for retirement village purposes. Section 17 of the act makes residents’ contracts binding on an owner’s successors in title and limits the circumstances under which residents’ contracts can be terminated. Section 21 of the act gives residents a charge over the land on which the retirement village is located. Significantly, that charge takes priority over other interests that may be registered on the title to the land, including mortgages. Even if there is a change of ownership of the land, the land remains so charged - section 20(5) of the act. Section 22 of the act prevents the termination of any retirement village scheme while a person remains in occupation unless the Supreme Court approves of the termination on terms it thinks fit, including the terms of the protection of residents’ interest.
(1) Any moneys held in trust cannot be applied by the trustee other than in accordance with the terms of the trust or law. In the case of a retirement village, the owner of the village commonly holds premium moneys paid by residents for entry into the village. At the end of a resident’s residency, those moneys or part of them are returned to the resident or to the resident’s estate if the resident has passed away. Villages differ in whether a resident’s money is held in trust during his residency. Unless the agreement between the resident and the owner provides for premium moneys to be held in trust or such an arrangement comes into existence by operation of law, premium moneys are not held in trust. In such circumstances, the owner may use the money for any lawful purpose, including the development of new retirement villages. For example, in the case of an incorporated association, the lawful purposes are usually identified in the association’s constitution. (2) A number of safeguards are provided by the Retirement Villages Act 1992 that operate to protect residents’ legal rights in their occupation of a retirement village and the return of their premium moneys upon vacation. These safeguards apply whether or not a trust is in place. Section 15(3) of the act requires that the owner of the village lodge a memorial with the Registrar of Titles, the effect of which is that the land can be used only for retirement village purposes. Section 17 of the act makes residents’ contracts binding on an owner’s successors in title and limits the circumstances under which residents’ contracts can be terminated. Section 21 of the act gives residents a charge over the land on which the retirement village is located. Significantly, that charge takes priority over other interests that may be registered on the title to the land, including mortgages. Even if there is a change of ownership of the land, the land remains so charged - section 20(5) of the act. Section 22 of the act prevents the termination of any retirement village scheme while a person remains in occupation unless the Supreme Court approves of the termination on terms it thinks fit, including the terms of the protection of residents’ interest.
(2) A number of safeguards are provided by the Retirement Villages Act 1992 that operate to protect residents’ legal rights in their occupation of a retirement village and the return of their premium moneys upon vacation. These safeguards apply whether or not a trust is in place. Section 15(3) of the act requires that the owner of the village lodge a memorial with the Registrar of Titles, the effect of which is that the land can be used only for retirement village purposes. Section 17 of the act makes residents’ contracts binding on an owner’s successors in title and limits the circumstances under which residents’ contracts can be terminated. Section 21 of the act gives residents a charge over the land on which the retirement village is located. Significantly, that charge takes priority over other interests that may be registered on the title to the land, including mortgages. Even if there is a change of ownership of the land, the land remains so charged - section 20(5) of the act. Section 22 of the act prevents the termination of any retirement village scheme while a person remains in occupation unless the Supreme Court approves of the termination on terms it thinks fit, including the terms of the protection of residents’ interest.
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