Termination for closure or change of use

As a home owner in a residential land lease community you have rights under the Residential (Land Lease) Communities Act 2013 and Residential (Land Lease) Communities Regulation 2015. This factsheet explains the law in NSW regarding termination for closure.

Termination for closure

An operator can give you a termination notice if the community is going to close and be used for another purpose. If the other purpose requires development consent under the Environmental Planning and Assessment Act 1979 the termination notice cannot be given until development consent has been obtained.

Termination for change of use

An operator can also give you a termination notice on the grounds that there is to be a change of use of your site, but only if the NSW Civil and Administrative Tribunal (NCAT) has authorised the notice and, if development consent is required, it has been obtained.

Notice period

A termination notice for closure or change of use notice must give you 12 months to vacate the site, or require vacant possession the day after the fixed term ends if that is longer than 12 months.

You can apply to NCAT for an order postponing the date you have to vacate. The application must be made within 90 days of receiving the termination notice.

Alternative accommodation

When an operator issues a termination notice for closure or change of use, the operator must try to find alternative accommodation for you unless you advise the operator in writing that their assistance is not required.

If providing assistance the operator must try to obtain, or make available to you, alternative accommodation that is of approximately the same standard and requiring no greater financial outlay as your current site. The home offered by the operator, must be acceptable to you or reasonably ought to be acceptable to you.

Relocation

If you receive a termination notice for closure or change of use and you relocate to another community operated by a different operator, the current operator must cover the costs of your relocation. The operator must pay in advance the likely reasonable costs of the following:

• removing your home from the current site and disconnecting any services
• transporting your home and your possessions to the new site
• installing your home on the new site and connecting services
• repairing any damage caused by the move
• landscaping the new site to the same standard as the old site.

The operator must also pay any reasonable additional costs in relation to the above once the relocation is complete. The payment must be made to the home owner who received the termination notice, or someone else as directed by the home owner.

Disputes about relocation or relocation costs can be determined by NCAT. The application must be made within 12 months of the home being installed on the new site.

Compensation

If you receive a termination notice and you cannot, or do not want to relocate, the operator must pay you compensation. The compensation payable may not equate to the value of your home on site.

The amount of compensation payable, or method to determine compensation may be set out in your site agreement. If the site agreement does not include compensation terms the operator must pay:

• compensation for loss of residency
• compensation for relocation.

The Residential (Land Lease) Communities Act 2013 sets out factors that are relevant considerations in each of the above to determine the amount of compensation that must be paid.

If you intend to keep the home, any amount you may be able to recoup by selling it is deducted from the compensation payable for loss of residency. The cost of moving the home elsewhere is also taken into account.

If you decide not to keep the home, in return for compensation you must transfer ownership to the operator.

NCAT is able to resolve disputes about compensation. The application must be made within 90 days of the dispute arising.

Updated April 2019

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