Under the Strata Title Village Scheme the Resident owns the strata title lot of an independent living Unit in the Village. Some residents instead choose to occupy their Unit under a lease called a “Village Scheme and Residency Lease” which has different terms and conditions.
The strata lot owning Resident and the Administering Body of the Village, Springfields Village Pty Ltd (“Springfields”), are parties to a “Village Scheme and Lifestyle Agreement” under which Springfields supplies the Village’s Communal Amenities for the shared use of all residents. For these use rights the resident pays to Springfields:
The Resident can only sell the strata lot Unit in accordance with the provisions of the Lifestyle Agreement to another person who is approved by the Administering Body as a resident. The Resident can only sell the strata lot Unit in accordance with the provisions of the Lifestyle Agreement to another person who is approved by the Administering Body as a resident.
The Resident is required to sell the strata lot Unit, on deciding to leave the Village, or if the resident, for health reasons, cannot safely live in the Unit or dies.
A Resident’s rights to use the Communal Amenities are protected by:
When the Resident sells the Unit the Resident pays a Communal Amenities Fee to Springfields for the Resident’s shared use of the Village’s Communal Amenities.
The Communal Amenities Fee is calculated on the Unit Sale Price paid for the Unit by the purchaser resident.
The Communal Amenities Fee is calculated on the number of days the resident occupies the Unit (called “Fee Days”) at 2.5% per annum of the Unit Sale Price but is capped after 12 years occupancy at 30% of the Unit Sale Price.
To maintain the condition of the Communal Amenities, there is a Village “Communal Amenities Reserve Fund” which pays the costs of repairs, renovations and capital replacements required for the Communal Amenities.
This Fund is held on trust and administered by Springfields.
Each financial year Springfields determines the amount of the Communal Amenities Reserve Fund Contribution to be paid by all strata title Unit owning residents.This may be an amount which is between 5% and 15% of all Village Operating Costs excluding insurance premium costs.
The resident pays an “Operating Costs Share” of the Communal Amenities Reserve Fund Contribution.
Operating Costs for the Village are shared equally between the Units and are paid by monthly instalments provided that:
In brief, Operating Costs mainly comprise - taxes, MRI Tax for the Communal Amenities, local or governmental rates, duties, imposts or fees charged for the Communal Amenities and the Village Open Space, water consumption,supply and service charges, sewerage, waste disposal and garbage removal charges, the costs of insurance, electricity, gas, waste removal, repairs, maintenance,external painting, cleaning and gardening expenses for Communal Amenities and Common Areas, costs of providing amenities and services and management costs.These costs are budgeted for annually, after consultation with the residents.
The actual Operating Costs are determined after the end of the financial year. Any surplus is applied either to residents’future Operating Costs or to other purposes approved by a residents’ “special resolution that are for the general benefit of the Village’s residents.
If there is a deficit the residents can be required to pay their share of the shortfall amount.
Residents pay for the electricity, gas, telephone, internet, pay television and other services they use in their Unit. They also pay for:
· local authority rates and charges for their Unit; and
· Water Corporation supply and service charges for water, drainage and sewerage; and that are directly charged to their Unit for water, drainage and sewerage.
Residents who own their Unit pay all Strata Company levies levied on their Unit. The levies include the Strata Company’s costs for insuring buildings and other structures in the Village and its public liability insurance
In general terms, in respect of the Unit, the resident must at the resident's cost:
Springfields must maintain in good repair and clean condition the Communal Amenities to the extent the costs of doing so can be paid out of Operating Cost or if appropriate out of the Communal Amenities Reserve Fund.
You may decide to sell your Unit at any time.
Springfields cannot terminate your Lifestyle Agreement but may, in certain limited circumstances, apply to the State Administrative Tribunal for an order terminating the Agreement and requiring you to sell the Unit.
Such an application may be made where due to your state of health the Unit is no longer a suitable home for you.
The Unit can only be sold by its owner resident on the terms and conditions of a prescribed form of Sale Contract when the Unit is in“Marketable Condition”. The sale price must be the Unit’s Market Value or for an amount being Market Value plus or minus 5%. The Unit’s market Value is agreed on with Springfields or failing this is set by a Valuer.
Any prospective purchaser must satisfy the Village Scheme’s resident eligibility requirements and be approved by Springfields. The purchaser can only buy for his or her own occupation.
The selling resident must pay all of the fees and costs charged by any real estate agents appointed by the selling resident.
Your Lease can be amended where this is required to comply with the law. Otherwise it can only be amended with your written agreement.
The above Outline of Key Terms sets out some of the important Village Scheme provisions in an abbreviated form only. It is not intended to be a comprehensive statement of all the important Village Scheme terms. You should refer to a copy of the Village Scheme and Lifestyle Agreement and the pre-contractual Disclosure Booklet to obtain full details and a proper understanding of the Village Scheme.
If any statement in this Outline is inconsistent in whole or in part with any term or terms of the Village Scheme and Lifestyle Agreement, the term or terms of the Lifestyle Agreement shall prevail over the terms of this Outline.
Based on contract version Feb 16