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VIC: Residential Tenancies Act Section 215B Tribunal may make park closure compensation order

Writer: David WoolfallDavid Woolfall

Tribunal may make park closure compensation order

(1) On an application under section 215A(1) or (2), the Tribunal may make a park closure compensation order if satisfied that—

(a) the notice to vacate has been validly given; and

(b) in the case of a caravan park closure, the parties entitled to compensation are eligible residents; and

(c) in the case of a Part 4A park closure, the parties entitled to compensation are eligible site tenants; and

(d) the caravan park owner or site owner is the owner of the land and the closure is not due to the expiry of a head lease.

(2) In making a park closure compensation order, the Tribunal must consider whether a dwelling to which the order relates—

(a) is to be relocated by the eligible resident or eligible site tenant; or

(b) is not to be, or is unable to be, relocated by the eligible resident or eligible site tenant.

(3) If a dwelling is to be relocated by an eligible resident or eligible site tenant, the Tribunal, in determining the amount of compensation payable by the caravan park owner or the site owner, is to have regard to the likely cost of the following—

(a) removing the dwelling from the site, including disconnection of services;

(b) transporting the dwelling and contents to a new site;

(c) installation of the dwelling at the new site (which is not to include any costs of landscaping the new site);

(d) any other matter the Tribunal considers relevant.

(4) After a dwelling is relocated by an eligible resident or eligible site tenant, the owner of the dwelling may apply to the Tribunal for an order that the caravan park owner or site owner compensate the owner of the dwelling for any of the following—

(a) the cost of any repair or damage to the dwelling resulting from the relocation of the dwelling, other than damage due to the negligence of any person engaged by the owner of the dwelling to dismantle, transport or relocate that dwelling;

(b) any reasonable costs that were reasonably incurred as a result of the relocation of the dwelling and its contents.

(5) On an application under subsection (4), the Tribunal may order that the caravan park owner or the site owner compensate the owner of the dwelling for any costs referred to in subsection (4).

(6) If a dwelling is not to be relocated or is unable to be relocated by an eligible resident or eligible site tenant, the Tribunal, in determining the amount of compensation payable by the caravan park owner or the site owner, is to have regard to—

(a) if the eligible resident or eligible site tenant has agreed to transfer ownership of the dwelling, free of encumbrances, to the caravan park owner or the site owner (as the case requires), the loss of residency, being a reasonable amount calculated having regard to the following—

(i) the original purchase price paid for the dwelling by the eligible resident or eligible site tenant;

(ii) the current on-site market value of the dwelling determined as if the closure were not to occur;

(iii) the rent and any other fees for the site payable by the eligible resident or eligible site tenant;

(iv) any other prescribed matter; and

(b) the likely reasonable costs of removing the contents from the dwelling and the relocation costs of the eligible resident or eligible site tenant, being a reasonable amount calculated having regard to the following—

(i) the costs of removal of the possessions of the eligible resident or eligible site tenant;

(ii) the likely inconvenience to the eligible resident or eligible site tenant due to having to arrange alternative residential accommodation;

(iii) the length of time the eligible resident or eligible site tenant has occupied the site; (iv) any other matter the Tribunal considers relevant.

(7) A park closure compensation order must specify the date by which the compensation under the order is to be paid to the eligible resident or eligible site tenant (as the case requires) which must not be less than 30 days before the end of the notice period specified in the relevant notice to vacate.

(8) If a park closure compensation order is made in relation to the relocation of a dwelling and the eligible resident or eligible site tenant (as the case requires) relocates the dwelling before the caravan park owner or the site owner pays the compensation payable under the order, the caravan park owner or the site owner, as the case requires, remains liable to pay the compensation under the order.


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