Issue Date:  -  Wednesday, 7 July 2004

Interim agreement reached on life style villages

Lake Joondalup Lifestyle Village ‘Lifetime Leases’

The Consumer Protection Commissioner has moved to reassure residents of Lake Joondalup Lifestyle Village (LJLV) that negotiations concerning their ‘lifetime leases’ are on track with the property’s owner, National Lifestyle Villages Pty Ltd (NLV) and their lawyers.

"We have been keeping in regular contact with residents with letters and meetings, as well as one on one consultation where required during this unsettling time", Commissioner Patrick Walker said.

NLV, their lawyers, and Consumer Protection have been involved in negotiations since questions were raised about the status of leases in May of this year.

Consumer Protection raised with NLV its concerns regarding the "Term" clause in their current lease agreements, as in the Department’s view, the "Term" clause was so uncertain that the whole lease agreement could be void.

NLV have agreed to make changes to the lease to address Consumer Protection’s concerns.

"This is a very complex matter concerning more than one statutory authority and numerous consumers. The new lease is still subject to WA Planning Commission approval. It will need all parties to be patient while the remaining issues are addressed", Mr Walker said.

The term of the proposed (new) lease is for the life of the original residents. The original lease was unclear as to whose life was intended. As a result of this and other drafting changes to the "Term" clause, Consumer Protection believes the new lease to be valid.

"Although further work still remains to be done, NLV and the Department have cooperated and reached agreement on all major issues, which will be of benefit to the residents", he said.

Consumer Protection is unable to provide any further information or comment at this stage to respect the ongoing discussions between the parties.