What is a statutory charge?
A statutory charge is a charge over the retirement village land for the benefit of residents.
The charge secures each resident´s right to:
- live in their unit
- use the village´s facilities
- get paid exit entitlements when they leave the village.
The statutory charge has priority over all registered securities in or over the land except:
- other charges that federal or state law has given priority to
- securities registered in or over the land before 1 November 1989.
Once you register your village, and a statutory charge is created, the department will notify the Titles Office, who will record the charge in the freehold land register.
When will the charge apply?
If you operate a retirement village other than a freehold or leasehold interest, the charge will be created as soon as you register your village.
Religious, charitable or community purpose organisations of good standing, in operating retirement villages, may apply to the chief executive for the charge not to apply to the retirement village land.
What if I acquire new land?
If you acquire new land after a statutory charge is created for existing land, the department will release the existing charge and create a new charge over both the original and new land.
Please notify the department in writing, within one month of acquiring the new land.
How do I get the statutory charge released?
If you no longer use land as retirement village land, apply to the department to release the statutory charge over it.
Give each resident, and any former residents who have not received exit entitlements, written notice that explains:
- you have requested the release of the statutory charge over the land
- how the release affects them
- their right to object to the release by writing to the department within 60 days.
You must give the department a copy of the notice given to the residents and a statutory declaration stating you have met the above requirements and whether you are aware that a person intends to enforce the statutory charge.
The department will consider the objections and decide whether to release the charge.
Once you have done these things and your application is approved, the department will notify the Titles Office and release the charge.