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Sub-letting and assignment

Sub-Letting

A resident may enter into a sub-letting agreement with another person either in writing or orally when:

  1. there are park rules in force that define the terms on which the park owner will act as a managing agent for the agreement and the services to be provided by the park owner; and
  2. the park owner consented; and
  3. there is a sub-tenancy managing agent agreement between the resident and the park owner.

The park owner can also make a park rule declaring that no sub-letting agreements can be made by residents.

[See Residential Parks Act 2007 (SA) s 51].

Assignment

An effective assignment of the resident's interest in a residential park agreement results in another person taking over the lease of the site or dwelling. This means that the resident is no longer liable under the agreement. An assignment can be verbal or written and must have the park owner's written consent.

A resident should ensure that they get consent because if they don’t they may still be considered liable under the agreement, or the park owner could terminate the agreement. A park owner can not unreasonably withhold consent and will be assumed to have consented if they do not respond within seven days of receiving a written request for consent with the assignee's full details. Always seek advice before entering into an agreement assigning your interest to another party.

At least 14 business days before an assignment, the resident assigning their interest or a person authorised to act on their behalf must advise the assignee to contact the park owner to request the prescribed information [s 48 (12)]. Failure to do so can result in an expiation fee of $160 or a fine of up to $1 250. It is a defence to prove the defendant believed on reasonable grounds that the assignee had already contacted the park owner to request the prescribed information. A park owner must provide the prescribed information within 7 business days after receiving the request, or such longer period as may be agreed. Failure to comply with these provisions does not, however, invalidate an assignment.

[See Residential Parks Act 2007 (SA) s 48].

Selling a dwelling owned by a resident

A resident owns a dwelling and enters into a residential site agreement with the park owner. The fixed term of the agreement is for four years. After two years the resident decides to sell the dwelling. The resident has the right to sell the dwelling but must first inform the park owner of their intention to sell, before putting up a for sale sign. The resident must also obtain the park owner's written consent to assign and effectively transfer the residential site agreement to the buyer of the dwelling.

[Residential Parks Act 2007 (SA) ss 48 and 50].


Sub-letting and assignment  :  Last Revised: Fri Aug 9th 2019
The content of the Law Handbook is made available as a public service for information purposes only and should not be relied upon as a substitute for legal advice. See Disclaimer for details. For free and confidential legal advice in South Australia call 1300 366 424.