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Retirement Villages Act 2003

Registration, occupation right agreements, and related requirements and rules - Occupation right agreements

31: Occupation right agreement voidable

You could also call this:

"You can cancel your retirement village contract if it's unfair or broken, and get your money back."

Illustration for Retirement Villages Act 2003

If you enter an occupation right agreement that breaks certain rules, you can cancel it. You must give written notice to the operator and the statutory supervisor within a certain time. This time is called the prescribed period. If you cancel the agreement, you are entitled to get your money back. This includes all the capital sums you paid and other payments for services you did not get. You will also get interest on this money and help with costs like legal expenses. The operator might not agree with you about cancelling the agreement. If this happens, you can give a dispute notice under section 53 or section 54. The operator can also give a dispute notice if they think you are wrong about the agreement being broken. The prescribed period is different depending on what rule was broken. It can be up to three years or six months after you found out about the problem. A contravention is substantial if it hurts you significantly or is not just a small technical mistake. It can also be substantial if the operator did something wrong on purpose. You can cancel the agreement if it was broken in a substantial way. You must do this within the prescribed period. If you cancel the agreement, the operator must give you your money back and help with costs.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM220868.

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Money and consumer rights > Consumer protectionHousing and property > Renting
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Part 2Registration, occupation right agreements, and related requirements and rules
Occupation right agreements

31Occupation right agreement voidable

  1. If an occupation right agreement is entered in contravention of section 18(3) or section 25(1) or section 27 or section 30(1) in any substantial respect, the agreement is, unless it has been terminated, voidable by the resident by notice in writing to the operator and to the statutory supervisor of the village (if there is one) given at any time within the prescribed period).

  2. If a resident exercises the right conferred by subsection (1), the resident is entitled to receive—

  3. a refund, without deduction, of—
    1. all capital sums paid before or during the resident's occupancy as consideration for right of occupation in the residential unit and all other payments for which services or facilities were not provided:
        2. interest at the prescribed rate:
          1. actual and reasonable costs associated with the voiding of the agreement (for example, legal expenses, and removal costs).

            1. Despite subsections (1) and (2),—

            2. if the resident and the operator cannot agree when the refund required by subsection (2) is to be made, either party may give a dispute notice under section 53 or section 54, as the case requires:
              1. if an operator receives from a resident a notice purporting to avoid an occupation right agreement for a contravention of section 18(3) or section 25(1) or section 27 or section 30(1) that the operator considers not to involve a contravention of any of those provisions in any substantial respect, the operator—
                1. may give a dispute notice under section 54 concerning the operation of subsections (1) and (2); and
                  1. must take all reasonable steps to remedy the contravention; and
                    1. if a dispute notice is given by the operator, is not required to make the refund referred to in subsection (2) while the dispute is unresolved.

                    2. In subsection (1), the prescribed period,—

                    3. in relation to a contravention of section 18(3) or section 25(1) is the lesser of—
                      1. a period of 3 years after the date on which the agreement was entered into; or
                        1. a period of 6 months after the resident knows, or ought to know, of the contravention:
                        2. in relation to a contravention of section 27 or section 30(1) is the lesser of—
                          1. a period of 1 year after the date on which the agreement was entered into; or
                            1. a period of 6 months after the resident knows, or ought to know, of the contravention.

                            2. For the purposes of this section, a contravention of a particular provision is a contravention of that provision in a substantial respect if—

                            3. the contravention involves a significant detriment to the resident; or
                              1. the contravention is otherwise material, and is not solely technical or minor in character; or
                                1. the contravention involves deliberate misconduct on the part of the operator.

                                  Notes
                                  • Section 31(2)(a)(ii): repealed, on , by section 5 of the Retirement Villages Amendment Act 2005 (2005 No 113).
                                  • Section 31(2)(a)(iii): repealed, on , by section 5 of the Retirement Villages Amendment Act 2005 (2005 No 113).