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 5].

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 be 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 after seven days after 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.

[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.

Source: Residential Parks Act 2007 ss 48 & 50

Sub-letting and assignment  :  Last Revised: Thu Jun 5th 2014
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