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GWM Lawyers and Conveyancers

Welcome to the June edition of this Law Update Newsletter, informing friends and clients of GWM Lawyers and Conveyancers of changes in the law that might impact on their personal or business lives.

New Laws for Holiday Vans

On 28 February 2003 the Holiday Parks (Long Term Casual Occupation) Act 2002 (NSW) ("the Act") became law.

The Act applies to "occupation agreements" between a park owner and a van owner in which that van owner installs their van on a site, is permitted to occupy the site for no more than 180 days a year and (with the agreement of the park owner) agrees to be an occupant for at least 12 months. The Act only applies where the van owner has a principal place of residence somewhere other than the site in the holiday park.

When the Act applies, certain prescribed terms are implied into the agreement between the van owner and the holiday park owner including:

• The date of the agreement.
• The parties to the agreement.
• The location of the site.
• The term of the agreement.
• The amount of the occupation fees.
• How the occupation fees may be increased including the fact that the park owner must give the van owner 30 days notice of any increase in the occupation fees.
• The termination of the agreement.
• How notices of termination are to be served.

What about existing agreements?

If a holiday park owner and a van owner have an existing occupation agreement, that agreement will continue in force until 28 February 2004. After that time, if a new written Occupation Agreement has not been made the existing agreement is "overwritten" by the provisions of the Act which will apply in its place.

Disclosure Statement

Under the Act there is also a requirement for the park owner to provide a "Disclosure Statement" to the van owner prior to the commencement of the agreement as well as an obligation for the agreement to be in writing.

The Disclosure Statement must contain certain prescribed questions and answers that disclose matters such as:

• What will be the occupation fees?
• Will there be any extra occupation fees charged during school holidays or other busy periods?
• How much notice will the occupant get before the occupation fees go up?
• How much notice will the occupant get before he or she is asked to leave the site?

Can an occupant sell the occupant's moveable dwelling while it is in the holiday park? What restrictions are there on an occupant regarding the sale of the occupant's moveable dwelling while it is in the holiday park? What are the arrangements if the park owner sells the occupant's moveable dwelling?

Failure to supply a copy of the Disclosure Statement to the van owner prior to entering into the agreement is an offence.

It is also an offence for a park owner to enter into an Occupation Agreement that is not in writing.

Implications for Brokers

Specialist brokers involved in the sale of caravan parks need to be aware of the new laws. It is suggested that brokers should enquire of their vendors whether the requirements under the Act have been adhered to in order to minimise the risk of delays between the issue of the sales advice and exchange.

Obviously, a prudent purchaser is going to enquire of the vendor whether the procedures laid down by the Act have been followed. It is suggested that brokers should be educating their vendors as to the procedures applicable under the Act (or suggesting to the vendors that they speak to their solicitors regarding the procedures required to comply with the Act).

If a caravan park vendor has proper procedures in place for the signing of occupation agreements and the issuing of Disclosure Statements, then the risk of delays between the deal being brokered and the contract being exchanged will be reduced.

GWM Lawyers and Conveyancers is a member of the Caravan and Camping Industry Association of New South Wales.

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