New rules in communities
03/11/2015
Community rules (previously called park rules) are about the use, enjoyment, control and management of a community. Unlike the Residential Parks Act 1998, the Residential (Land Lease) Communities Act 2013 does not set specific subject matter for rules so they can be about anything that fits into these general themes.
Rules can be made and amended by operators. However, they have no effect unless each resident has been given written notice of the rule or an amendment to a rule at least 30 days before it is due to take effect. If there is a residents committee in the community then the operator must also consult with it before giving notice to the residents.
Disputes about community rules
Residents can make applications to the NSW Civil and Administrative Tribunal (NCAT) about whether new or amended rules comply with the Act, or whether the correct procedure to introduce a rule was followed. In the past there were very few Tribunal applications about park rules. It will be interesting to see whether that continues under the new Act or whether there is an increase now that the restrictions on subject matter have been removed.
Who has to follow the rules?
There are a number of improvements in the area of rules under the Residential (Land Lease) Communities Act 2013. One of these is the requirements regarding compliance. Under the new Act everyone in the park must comply. For residents this means that the rules not only apply to them but also to their guests and anyone living with them, and they are responsible for ensuring the rules are followed.
For operators, as well as having to comply themselves they must also ensure compliance by any employees; people invited into the community by the operator; and all residents and occupants. In addition the rules must be enforced fairly and consistently.
A breach of the rules
Another major difference under the new Act is that residents can now issue the operator with a written notice to take action regarding a breach of a community rule.
This could be a breach by the operator, an employee, another resident or anyone else in the community, who must be given at least 30 days to remedy (fix) the breach. If the breach is not remedied within the specified period then the resident has 30 days to make an application to the Tribunal for enforcement.
Rules are no longer terms of the agreement but there can still be consequences for non-compliance including the termination of a tenancy or site agreement.