New Code
The Code of Practice for Retirement Villages 2022 commenced on 1 April 2022. It is found in a schedule to the Fair Trading (Retirement Villages Interim Code) Regulations 2022 (WA). The new Code will apply for 3 years, expiring 31 March 2025.
What has changed?
Not a great deal has changed since the Code’s predecessor (Interim Code of Practice for Retirement Villages (No. 2) 2021). A comparison of the two Codes reveals –
The most ‘noteworthy’ changes are:
- The quorum for a special resolution of residents has been clarified (removing unnecessary wording which referred to ‘a minimum’ number of residents).
- A party seeking a review of a decision refusing to refer a retirement village dispute to mediation may apply within 28 days after receiving notice of the decision
- References to the previous Interim Code are replaced with references to the new Code. Some related dates and legislative references are also updated.
Most of the changes, however, are truly insignificant, and mainly grammatical. For example:
- References to ‘the’ Code are replaced with ‘this’ Code. A reference to ‘This’ Code is replaced with ‘The’ Code.
- A reference to ‘may’ is replaced with ‘can’. A reference to ‘may not’ is replaced with ‘cannot’.
- A reference to ‘a’ retirement village is replaced with ‘the’ retirement village.
- References to the ‘dispute resolution process’ are replaced with the ‘village dispute resolution process’.
- A reference to ‘a’ resident is replaced with ‘the’ resident.
Wasn’t the last Interim Code only 6 months old?
Codes of practice made under Part 4 of the Fair Trading Act require certain consultation with interested persons and organisations. If the requirements are met, a new code of practice may operate for up to 3 years: Fair Trading Act s 45. Interim codes of practice, on the other hand, can be prescribed without following the prescribed consultation and submission processes, but may only have effect for a period not exceeding 6 months: Fair Trading Act s 46.
The last Interim Code continued a trend seen for several years, whereby codes of practice relating to retirement villages were being prescribed under the Fair Trading Act 2010, for 6 months at a time. Each brought with it little by way of substantive change.
The new Code is not an ‘Interim’ Code. Hence, its expiry date is set for a full 3 years.
Practical considerations
The new Code is almost identical to the predecessor Interim Code. Major adjustments or changes to established practices should therefore not be necessary for owners and administering bodies who have previously kept up to date.
You should, however, consider whether your residence contracts, village rules and policies contain references to superseded codes; and if so, update any such references accordingly. When giving disclosure information to prospective residents, also be sure to provide a copy of the new Code.
If you need assistance or information regarding the Code of Practice for Retirement Villages 2022 , residence contracts or any other legal issues affecting retirement villages, please contact David McMullen.
