Both & Ors v PJD Group Pty Ltd t/as Esk Caravan Park [2016] QCAT 58
CITATION: Both & Ors v PJD Group Pty Ltd t/as Esk
Caravan Park [2016] QCAT 58
PARTIES: Allan Both
Jennifer Both
David Gilmore
Alison Gilmore
Kevin Goldsworthy
Ann Goldsworthy
Douglas Green
Gayle Green
Pamela Paxman
Allan Paxman
Peter Raine
Christine Joy Raine
Jan Rouw
Ineke Rouw
(Applicants)
v
PJD Group Pty Ltd t/as Esk Caravan Park
(Respondent)
APPLICATION NUMBER: OCL015-15
MATTER TYPE: Other civil dispute matters
HEARING DATE: On the papers
HEARD AT: Brisbane
DECISION OF: Member Howard
DELIVERED ON: 17 May 2016
DELIVERED AT: Brisbane
ORDERS MADE: 1. (i) It is declared that the park owner is
unable in or through park rules to
impose charges on the homeowners
which are not provided for in the
written and signed site agreements;
(ii) It is declared that the proposed
changes to the park rules which are
contained in paragraphs 4(h), 17(c),
17(e) and 23(a) of the proposed park
rules are unreasonable and void.
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CATCHWORDS: MANUFACTURED HOMES- PARK RULES-
whether proposed changes to park rules are
reasonable- where park owner proposes to
include rules which provide for charges for
parking of a second vehicle, day visitors use of
park facilities and overnight visitors – where
charges not contained in the written site
agreement- whether charges allowed to form
part of park rules
Acts Interpretation Act 1954 (Qld), s 14A
Manufactured Homes (Residential Parks) Act
2003 (Qld), s 4, s 12, s 16, s 17, s 19, s 23, s 25,
s 26, s 27, s 29, s 68, s 69, s 70, s 71, s 77, s 78,
s 79, s 80, s 81, s 82, s 83, s 85
Claremont Holdings Pty Ltd v Chief Executive of
Housing & Public Works; Chief Executive of
Housing & Public Works v Claremont Holdings
Pty Ltd [2015] QSC 349
Gilmore & Ors v Lawson [2014] QCAT 620
Haraba Pty Ltd v Castles [2007] QCA 206
APPEARANCES:
APPLICANT: The Applicants represented themselves.
RESPONDENT: PJD Group Pty Ltd was represented by its
directors, Paul & Jacqui Lawson.
This matter was heard and determined on the papers pursuant to s 32 of the
Queensland Civil and Administrative Tribunal Act 2009 (Qld) (QCAT Act).
REASONS FOR DECISION
[1] These proceedings concern a dispute between the named homeowners in
a manufactured home park (‘the homeowners’) and PJD Group Pty Ltd t/as
Esk Caravan Park (‘PJD’ or ‘the park owner’) under the Manufactured
Homes (Residential Parks) Act 2003 (Qld) (‘MHRPA’).
[2] PJD Group purchased the Esk Caravan Park in 2013. The Esk Caravan
Park contains 14 manufactured homes, 27 tenants under the Residential
Tenancies and Rooming Accommodation Act 2008 (Qld) (‘RTA’) and 90
powered and unpowered sites, as well as cabins for casual and holiday
letting. The park owner describes it as a ‘mixed use park’. This is not a term
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recognised by the MHRPA, although similar arrangements may exist in
some other parks.1
[3] A previous decision of the Tribunal arose out of an earlier version of what
was essentially the same dispute. The decision of the Tribunal in those
related proceedings is published as Gilmore & Ors v Lawson [2014] QCAT
620 (the first decision). In that earlier proceeding, the Tribunal made a
declaration that any amount charged for visitors and any amount charged
for extra parking did not comply with ss 78 - 81(which provide the procedure
which a park owner must follow when proposing to change park rules) of
the MHRPA and were therefore void and of no effect.2 In these reasons, I
will refer to the events leading up to the first decision as the first rule change
process.
[4] The first rule change process included proposed park rules as follows:
Rule 4(h) One vehicle per site unless otherwise arranged. Extra vehicles
incur costs.
Rule 17(c) There is no fee for day visitors to your home. Day visitors must
however pay to use park facilities.
Rule 17(e) A visitor’s fee is charged for all overnight visitors. Overnight
visitors must register and pay before 6pm on the night of intended
stay.
[5] Subsequent to the Tribunal’s first decision, the park owners gave notice of
their intention to also vary park rules by inserting additional new park rules,3
including proposed Clause 23(a) (the second rule change process) as
follows:
Rule 23(a) Costs and fees referred to in this document are displayed in the
Office and on the Manufactured Homeowners / Residents Notice
Board located in the small Camp Kitchen Area. Increases to listed
fees will be no more than yearly and consistent with the conditions
set out in the Act for general rent rises.
[6] In summary, the essence of the dispute is whether the park owners can
make ‘park rules’ requiring the homeowners to pay charges, which are set
out in a separate Price List. The particular charges in contention relate to
charges for parking vehicles in excess of one vehicle on a site; charging a
fee for overnight guests to the homeowners homes; and charging a fee for
their day visitors to use park facilities. There were other park rule changes
proposed, but no objection is/was made by the homeowners about those
other changes (in either this proceeding or the earlier proceeding).
Accordingly, I have not considered them.
[7] The homeowners seek orders from the Tribunal declaring the proposed
changes to the park rules set out above to be unreasonable pursuant to
s 85 and void pursuant to s 23 of the MHRPA. Further, the homeowners
1 For example, see Haraba Pty Ltd v Castles [2007] QCA 206.
2 Gilmore & Ors v Lawson [2014] QCAT 620.
3 An additional proposed rule 17(l) was also included but is not the subject of this
application by the homeowners as it has been abandoned by the park owner.
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seek a declaration that the park owner is not able to charge fees as part of
the park rules and an order confirming that the decision of the Tribunal is
effective across all manufactured homeowners in the Esk Caravan Park.
The park owner opposes the application, arguing that it is reasonable to
make the changes and impose the charges/fees as intended.
[8] Homeowners, Douglas & Gayle Green and Kevin & Ann Goldsworthy,
applied for preliminary orders that they have site agreements and are
entitled to be parties. Orders were made that they be joined as parties, but
declarations were not made about whether they have site agreements.
Subsequently, Mr and Mrs Goldsworthy located a copy of a signed site
agreement dated 18 May 2007.4
The legislative scheme established by the MHRPA
[9] The main object of the MHRPA is to regulate and promote fair practices in
the operation of residential parks. This is to protect homeowners from unfair
business practices and enable homeowners and prospective homeowners
to make informed choices consequent upon full knowledge of their rights
and responsibilities in their relationship with park owners.5 The object is to
be achieved by the MHRPA, by means including, declaring some rights and
obligations of park owners and homeowners,6 and regulating the variation
of site rent.7
[10] A residential park includes the sites, the common areas and facilities for the
homeowners.8 The park rules for a residential park are taken to be included
as terms of the site agreement,9 as are homeowners responsibilities10 and
the park owner’s responsibilities.11 Contracting out of the provisions of the
MHRPA is prohibited and an agreement is void to the extent which it
purports to do so: s 23 of MHRPA.
[11] The park owner is obliged to ensure a site agreement is written to the extent,
and in the way required by s 25 of the MHRPA: s25(1). The agreement must
include the standard terms, and any special terms of the agreement.12 For
a standard term to be effective, if the term requires stated information to be
included, the agreement is taken to include the standard term only if the
information is properly included: s 25(3). Section 25(4) provides for matters
which must be complied with /specified in a site agreement. Those matters
specified in 25(4) must be in an agreement which is signed by the parties:
s 25(4)(k). The matters in s 25(4) include the site rent and other charges
payable under the site agreement,13 as well as how and when site rent may
4 Attachment to a joint statement by Mr and Mrs Goldsworthy filed on 2 September 2015.
5 MHRPA, s 4(1).
6 Ibid, s 4(2)(a).
7 Ibid, s 4(2)(c)(iii).
8 Ibid, s12.
9 Ibid, s 19(c).
10 Ibid, ss 19(a) and 16.
11 Ibid, ss 19(b) and 17.
12 Ibid, s 25(2).
13 Ibid, s 25(4)(i)(i).
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be varied.14 The site agreement must also state the maximum number of
persons who may reside on the site.15
[12] A homeowner’s right under the site agreement to the site continues until the
agreement is terminated:16prima facie, site agreements are for an indefinite
term.17 A successor in title of the park owner under a site agreement obtains
the benefits, but is subject to the obligations of the park owner in relation to
the agreement.18
[13] Site rent19 payable under a site agreement may only be varied as set out in
Part 11 of the MHRPA.20 In particular, if a site agreement provides for any
increase in site rent payable, and sets out how it is to be calculated, if the
park owner wishes to increase the site rent the park owner must give the
homeowner a notice setting out the amount of the increased site rent, how
it has been calculated, and the day the increased site rent is first payable.21
The park owner must also inform the homeowner that if the homeowner
considers the increase is excessive, the homeowner has 28 days after
receiving the notice in which they can apply to the Tribunal for an order
reducing the amount or setting aside the increase.22 The homeowner may
then apply and the Tribunal will determine the application.23
[14] If the park owner wishes to increase the rent and s 69 does not apply to the
proposed increase, then a park owner must follow a different process (if it
proposes to increase the rent to cover significant increased operational
costs; unforeseen significant repair costs or significant facility upgrades).24
If the park owner and the homeowner cannot agree on the proposed
increase, the park owner may apply to the Tribunal about the proposed
increase.25
[15] Where site agreements are in force, a park owner may make rules about
the use, enjoyment, control and management of the park.26 Rules may only
be made about certain matters, as prescribed in s 77(2) as follows:
(2) However, rules may be made only about—
(a) the use and operation of the communal facilities; and
(b) the making and abatement of noise; and
(c) the carrying on of sporting and other recreational activities; and
14 MHRPA, s 25(4)(i)(iii).
15 Ibid, s 25(4)(j).
16 Ibid, s 26.
17 Haraba Pty Ltd v Castle [2007] QCA 206, see paras [2] – [3].
18 MHRPA, s 27.
19 MHRPA, Schedule, Dictionary ‘site rent’ means the rent payable under a site
agreement.
20 Ibid, s 68.
21 Ibid, s 69.
22 Ibid, s 69(3).
23 Ibid, s 70.
24 Ibid, s 71, especially s 71(1)(c).
25 Ibid, s 71(8).
26 Ibid, s 77(1).
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(d) the speed limits for motor vehicles; and
(e) the parking of motor vehicles; and
(f) the disposal of refuse; and
(g) the keeping of pets; and
(h) other things prescribed under a regulation.27
[16] If a park owner proposes to change a park rule, it must fix a day for
objections and give notice to each homeowner at least 28 days before the
objection closing day.28 If the minimum number of homeowners object, a
park liaison committee must be established to consider all objections.29
[17] If a non-resolution notice is given to objectors, or the park owner or a
homeowner is dissatisfied with the decision of the park liaison committee,
they may apply to the Tribunal for an order declaring the proposal to be
reasonable or unreasonable.30 In deciding such an application, the Tribunal
may declare the proposal to be reasonable, or declare it to be
unreasonable.31 Alternatively, it may change the proposal in a way the
Tribunal considers appropriate to make it reasonable,32 or it may make any
other order the Tribunal considers appropriate.33 The QCAT Act also
provides that the Tribunal may make a declaration about a matter in a
proceeding, in addition to other orders it may make under an enabling Act.34
[18] For deciding the application, the Tribunal may have regard to the factors set
out in s 83(2), but it may have regard to any other matters.35 A change of a
park rule has no effect if it is made otherwise than under Division 2 of Part
13 of the MHRPA, or the park liaison committee or the Tribunal in
considering the proposal declares it to be unreasonable.
[19] It is useful to observe that an agreement under the provisions of the RTA
affords less protection than those given to a homeowner with a site
agreement under the MHRPA.36
27 None have been prescribed.
28 MHRPA, s 78.
29 Ibid, ss 80 and 81.Relevantly in a park of 14 sites, at least 5 homeowners must object.
30 Ibid, s 82(1) and (2).
31 Ibid, s 83(1)(a) and (b).
32 Ibid, s 83(1)(c).
33 Ibid, s 83(1(d).
34 QCAT Act, s 60.
35 MHRPA, s 83(3).
36 Claremont Holdings Pty Ltd v Chief Executive of Housing & Public Works; Chief
Executive of Housing & Public Works v Claremont Holdings Pty Ltd [2015] QSC 349.
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The background to the application
[20] Except for Mr & Mrs Green, all of the applicant homeowners have lived in
the residential park since between about 2007 to 2012,37 that is, before
2013, when the current park owner purchased it.
[21] Each of the site agreements provided to the Tribunal includes a clause in
Section 5 ’Number of persons included in the site rent’. In the case of each
of the homeowners who are parties, ‘2’ or 2 adults is inserted in the relevant
place on the standard form site agreement. There is, in Section 5, also
provision for ‘Charges for additional persons’. The agreements have
differing amounts inserted in the relevant place. Most have $50 inserted.
One has $70. Another has been left blank. The homeowners understood
that this additional weekly fee covered a situation where another person or
persons (in addition to the 2 persons allowed for in the site agreement)
resided in their home on a semi-permanent basis. Most of the agreements
record in Section 10, that site rent increases are to be in accordance with
CPI and rate increases if applicable; one says ‘rates and fees’ as
negotiable; another is blank.
[22] The homeowners say they understood from the former park owner that
overnight fees for park visitors did not apply to (short-term) visiting family or
overnight guests of homeowners under the MHRPA and did not charge a
fee in those circumstances. The homeowners say that in the past, neither
have they been charged for family members to stay or visit at the park on
an infrequent basis for facilities use. Until now, at least some homeowners
have had two vehicles with no additional charge. Some homeowners have
built carports to house their two vehicles. They say essentially that since the
current park owners purchased the park, it has attempted to impose rules
and fees contrary to their site agreements and the MHRPA.
[23] The park owner sought in the first rule change process to change the park
rules by notice given by letter dated 15 July 2014, attaching the ‘updated’
park rules. A document attached to the park owner’s representatives
affidavit, Attachment 6, sets out the changes proposed by the park owner
in the first rule change process.38 The park owner says that park rules 4(h)
(parking charges for extra vehicle) and 17(e)(overnight visitor’s charge)
were already contained in the park rules which have existed for over 17
years. 39
[24] As discussed earlier the Tribunal found that the procedure under the
MHRPA for changing park rules had not been followed. The charges for
visitors and parking were declared to have no effect.
37 Application filed on 4 March 2015, attached are copies of the site agreements executed
by the homeowners (except the Goldsworthys and the Greens). The Goldsworthys’
agreement is attached to their joint statement filed 2 September 2015.
38 Affidavit of Paul Lawson and Jaqueline Lawson filed 22 October 2015, Part D-
Introduction/History e) to m) and Attachment 6.
39 Ibid, para [18] and attachment 9, statutory declaration of William Steele.
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[25] In the second rule change process, the park owner notified homeowners of
proposed changes to park rules by way of letter dated 23 December 2014,
including rule 23(a): it is Attachment 7 to the park owners affidavit.40 The
proposed park rules were again attached. Objections were made by
homeowners. A park liaison committee was formed, but ultimately a non-
resolution notice was given.
[26] It is worth noting, (because it reveals what appears to be the genesis of this
dispute), that the park owners representatives say:
Esk Caravan Park is not a Manufactured Home Park it is a mixed use caravan
park…41
We are a mixed-use park that accommodates permanent residents under the
MHRPA and RTA as well as tourists who holiday within our establishment.
At regular periods throughout the year the park can accommodate up to 300
guests. As a mixed-use park, business control mechanisms (such as
overnight fees) manage the number of guests within the park at any one time.
The application seeks to remove all fees currently imposed on overnight
visitors. This has the potential for significant loss and strain on our mixed-use
park business. We submit that a fee imposed, for cost recovery and
management must be allowed for the health of this business (permanent
residence (sic) and tourists alike). 42
[27] In effect, they argue that the fees they seek to impose ‘are consistent across
all areas of our park.’43 They say it is common practice for mixed-use parks
to charge overnight fees and day fees for visitors. They attach email and
other information from other parks.44 Further, they say the fee is imposed
on the visitor and not the ‘resident’ so the residents’ budgets are not placed
under undue stress.45
What version of ‘park rules’ are applicable to the homeowners under the
MHRPA?
[28] As the Tribunal discussed in its earlier decision, there are a variety of
inconsistent versions of the ‘park rules.’
[29] Various versions were provided to the Tribunal by the park owner.46 None
of them are dated. Mr William Steele owned the Esk Caravan Park from
1998 to 2006. He provided a declaration47 attaching a copy of a sign setting
out park rules, which was attached to the amenities block in the park in 1998
when he purchased it. He further says that a ‘Notice’ sign, affirming park
rules, was installed outside the park office by him in 2002. A copy of that
‘Notice’ is also attached to his declaration. The Notice sign refers to
charges/fees for visitors and vehicles of $2.20 and $8.80 respectively. Both
40 Ibid, Part D-Introduction/History e) to m) and Attachment 7.
41 Affidavit of Paul Lawson and Jaqueline Lawson filed 22 October 2015, para [63].
42 Affidavit of Paul Lawson and Jaqueline Lawson filed 16 November 2015, para [69].
43 Affidavit of Paul Lawson and Jaqueline Lawson filed 22 October 2015, para [44].
44 Ibid, Conclusion page 14, para 3) and attachments 18, 19, 23, 20.
45 Ibid, Conclusion page 14, para 5).
46 Ibid, Part D-Introduction/History d) and Attachments 2, 3, 4 and 5.
47 Ibid, Attachment 9.
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signs remain in place. There is another version of park rules on the back of
rent receipts.48 There is one further version of the park rules (Attachment
5).49
[30] Relying on these details, the park owner says that rules 4(h) and 17(e) have
been in place for over 17 years and were in place prior to the MHRPA and
their entry into the park, and cannot now be objected to under the MHRPA.50
[31] Finally, the proposed amended park rules from the first and second rule
change processes are contained in Attachments 6 and 7 respectively. A
copy of the Price List setting out the charges was also filed.51
[32] It is clear that Mr Steel did not enter into site agreements with any of the
applicant homeowners. Indeed, it is not clear when the (then) park owner
took the decision to include a manufactured home residential park within
the Esk Caravan Park. The MHRPA is applicable only to the homeowners
under the MHRPA, not other persons renting under the RTA or holidaying
campers and caravanners staying at Esk Caravan Park from time to time.
[33] The current park owner’s representatives depose that ‘prices have risen
since the implementation of the first manufactured home in 2008…’52 They
therefore concede that the residential park under the MHRPA was
established by 2008. However, Mr & Mrs Goldsworthy entered into a site
agreement in 2007. Therefore, it seems more probable than not that at
some time in 2007, the decision was taken to include a residential park53
within the meaning of the MHRPA, within the Esk Caravan Park. I find that
it was established in 2007.
[34] On the evidence before it, the Tribunal in its first decision considered that
reading them all of the versions of the park rules, it was reasonable to infer
an expectation that the park owner could charge an amount for overnight
visitors and an amount for parking.54 It considered that charging actual
amounts was a proposed change to park rules and the procedure in the
MHRPA to change park rules had not been followed. Accordingly, it did not
ultimately declare the relevant proposed changes to be reasonable or
unreasonable. It declared the proposed changes void and of no effect for
non-compliance with the procedure in ss 78-81 of the MHRPA.
[35] I do not agree with the Tribunal’s conclusion that it is reasonable to infer
from the different versions of the park rules that the park owner could charge
an amount for overnight visitors and ‘extra’ parking. I consider that the first
step is to determine which version of the ‘park rules’ applies to the
homeowners under the MHRPA.
48 Ibid, Attachment 2.
49 Ibid, Attachment 5.
50 Ibid, para [34].
51 Affidavit of Paul Lawson and Jaqueline Lawson filed 22 October 2015, Attachment 15.
52 Ibid, paras [44] and [50].
53 MHRPA, s 12.
54 Gilmore & Ors v Lawson [2014] QCAT 620, at [16].
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[36] In Attachment 5, which the park owner says was in place at the time it
purchased the park, the following clauses are contained:
2. Park facilities are for the enjoyment of all occupiers and their overnight
visitors….A Park resident must accompany day visitors when using the Park
facilities.
7. Cars are to be parked either within your carport or in the designated car
parks situated throughout the park (Maximum of 2 vehicles per site unless
otherwise approved)55
[37] The homeowners say the former park owner did not consider that all of the
so-called ‘park rules’ applied to MHRPA residents, as opposed to residents
under other kinds of arrangements. Indeed would be highly improbable,
given the specific requirements of the legislative scheme in the MHRPA,
that all ‘park rules’ in place many years before the MHPRA began, (in some
cases, before 1998), would comply with that Act and be suitable for
application to MHRPA homeowners, (as well as, RTA tenants and casuals).
[38] A person employed in the office of the park since 2010 deposes that in her
‘time working at the Esk Caravan Park’, ‘any visitors staying overnight’ have
been required to pay fees, including permanent resident’s visitors.56 The
statement made is somewhat vague. It is not clear whether she means that
at all times during her employment, all overnight visitors have been charged
fees. It is also not clear that she is referring to visitors of homeowners under
the MHRPA or to RTA residents or both. I give it limited weight because of
its vagueness, and prefer the homeowners’ assertions. However, even if I
accepted (and I make no finding that overnight visitors of the homeowners
were charged fees) that fees have been charged in the past, it does not
mean they were, in fact, applicable.
[39] The current park owner does not appear to have considered whether ‘park
rules’ appearing on the myriad of signs and documents are ‘park rules’ for
the purposes of the MHRPA, or whether that term, as it is used in some of
the versions, was used in a more general way by persons who owned the
caravan park, well before it became a residential park for the purposes of
the MHRPA.
[40] A park owner is obliged to give a prospective homeowner, under the
MHRPA, documents including the park rules and 2 copies of the proposed
site agreement.57 The park owner’s representatives allege that when they
purchased the park, most ‘resident’s’ contracts were ‘non-existent, incorrect
or incomplete.’58 The homeowners say that all but 3 (of the 14 manufactured
homes homeowners) had agreements, and that most of them recall being
provided with the ‘original version’ of the park rules.59 That is, they were
55 Affidavit of Paul Lawson and Jaqueline Lawson filed 22 October 2015, Part D-
Introduction/History d) and Attachment 5.
56 Affidavit of Paul Lawson and Jaqueline Lawson filed 22 October 2015, Attachment 8.
57 MHRPA, s 29.
58 Affidavit of Paul Lawson and Jaqueline Lawson filed 22 October 2015, Part D-
Introduction/History c).
59 The homeowners joint witness statement filed on 6 November 2015, para [3].
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provided with the version which is described above as Attachment 5. They
say that the copies of park rules on the rear of the rent receipt, the sign
outside the office and on the amenities block apply to occupants of
temporary/holiday residents.
[41] It is hardly surprising that not all homeowners recall precisely what
documents they were given: it occurred a number of years ago. However,
most do recall. On the balance of probabilities, I accept the homeowners’
evidence, and find that they received a copy of the park rules at Attachment
5 from the park owner with their proposed site agreements in compliance
with the MHRPA. Accordingly, it is reasonable to infer that the (former) park
owner, having decided to establish a residential park under the MHRPA did
prepare park rules intended to apply to homeowners within the residential
park under the MHRPA in accordance with requirements of that Act. They
are contained in Attachment 5. However, the park continued to operate the
other aspects of its business, and the general ‘park rules’ under which it
operated those other aspects of its business also remained in place for its
other residents and customers.
[42] Attachment 5 contains, therefore, the whole of the existing park rules under
the MHRPA which applied to the homeowners before the first rule change
process began. It is reasonable to infer from rule 7 in Attachment 5 that site
agreements entitle homeowners to two vehicles per site, and I draw that
inference.
[43] The Tribunal’s first decision was directed only to the particular changes to
park rules agitated by the homeowners relating to the charging of fees. The
many other proposed park rule changes were not in dispute in that
proceeding. However, the proper process was not followed in relation to the
other proposed changes and the first rule change process was not effective
to make the various other changes to the park rules either. However, those
other changes have now been effected in compliance with the MHRPA in
the second rule change process, except in relation to those particular
changes which are the subject of this proceeding. (That said, I make the
observation that if any of those other purported changes which are not
challenged in this proceeding fall within s 23 of the MHRPA, they are void
in any event, even though the homeowners have not objected to them.)
[44] Therefore, proposed rules 23(a), 4(h), 17(c) and 17(e), are all proposed
changed rules in the second rule change process, despite the park owners
submissions to the contrary. It follows that the park rules, as they apply to
homeowners under the MHRPA, do not currently entitle the park owner to
charge for parking for a second motor vehicle; for overnight visitors at their
homes (as opposed to additional persons residing with them on a long-term
basis); or for daily use of park facilities by their visitors.
Are the proposed changes to the park rules which are the subject of the
dispute in compliance with s 77 of the MHRPA?
[45] The park owner submits that the inclusion of rule 23(a) in the park rules
ensures that they meet their obligations under the MHRPA, because it
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ensures that homeowners are fully aware of their responsibilities, by
advising where fees are listed.60 Fees were previously listed only in the
office, but are now placed on the residents’ noticeboard as well. Further,
they argue that in accordance with proposed rule 23(a), ‘any rises to the
listed fees must be consistent with the conditions set out in the act (sic) for
general rent rises thus ensuring all residents have the right to object to any
rise they think is excessive.’61 The precise mechanisms by which they
assert the charges/fee rises are to be calculated or may be challenged are
not particularised. It is not apparent which ‘act’ they refer to, given that some
residents fall under the RTA not the MHRPA.
[46] The park owners argue that the provision in site agreements for charges for
additional persons ‘simply means that any additional person who stays
overnight is not covered by the weekly site rent.’62 They argue that the
amount charged for additional persons (now $11 per adult and $8 per child
per night, with a 7th free night) is ‘reflective’ of the amounts for additional
persons specified in the site agreements63 (and an additional person fee on
an unpowered camp site).64 They argue that these amounts were agreed to
by homeowners when entering the park.
[47] Section 77 entitles a park owner to make park rules about the use,
enjoyment, control and management of the park, only about specified
issues. These include the use and operation of communal facilities65 and
parking of motor vehicles.66 None of these authorises the making of park
rules about charging of fees.
[48] As discussed earlier, s 25 of the MHRPA requires that a written site
agreement must set out the standard terms. Section 25(4) details the
matters which must appear in the written agreement that must be signed by
the parties.67 These include that it must state ‘the site rent and other charges
payable under the agreement’68 and how and when site rent may be
varied.69 Although park rules are taken to be included as terms of a site
agreement under s 19,70 that part of the site agreement setting out the
standard terms (including rent and other charges specific to the agreement)
must be signed by the parties (as required by s 25(4)). The site agreement
will be taken to include a standard term only if the information is properly
included: s 25(3). The site rent and other charges must be set out in the
signed agreement.
60 Affidavit of Paul Lawson and Jaqueline Lawson filed 22 October 2015, para [3].
61 Affidavit of Paul Lawson and Jaqueline Lawson filed 22 October 2015, para [50].
62 Ibid, para [17].
63 Ibid, para [50].
64 Ibid, para [50].
65 MHRPA, s 77(2)(a).
66 Ibid, s 77(2)(e).
67 Ibid, s 25(4)(k).
68 Ibid, s 25(4)(i)(i).
69 Ibid, s 25(4)(i)(iii).
70 Ibid, s 19(c).
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[49] As I interpret the legislative scheme, s 77 does not provide for the charging
of fees, because all charges must be set out in the signed portion of the
written site agreement. The charges cannot be contained in park rules, or
in this case, in another document, the Price List, which is merely referred to
in the proposed park rules and subject to change at the discretion of the
park owner.
[50] Despite the park owners assertion that the charges they propose will only
be increased in line with rent increases and that they can therefore be
challenged, there is no mechanism in the site agreements, or the MHRPA,
for the challenge asserted to exist. Variations to site rent may be challenged
as provided for in Part 11. Matters to be taken into account are set out in
detail. Proposed changes to park rules may be challenged as provided for
in Part 13. None of the matters specified for consideration relates to
determining the reasonableness of additional charges sought to be imposed
in or through park rules.71 This is because charges/fees which are not
specified in the site agreements, cannot be imposed through the park rules.
If it was otherwise, a park owner could at any stage introduce new charges
on homeowners through park rules. To allow this to occur would be
inconsistent with the legislative scheme.
[51] Unlike an RTA tenancy, the homeowner under the MHRPA often expends
very significant monies purchasing their home for placement on the site
which is the subject of a site agreement. Entry into a site agreement gives
them an indefinite term. Having regard to the objects of the MHRPA of
protecting homeowners from unfair business practices and facilitating
disclosure of information about a residential park to prospective
homeowners, on my reading of the relevant provisions in the MHRPA
scheme, Parliament’s intention was to ensure that homeowners could make
a fully informed decision (in full knowledge of the rent and other charges
applicable to them and the mechanisms for increase) about whether to enter
into a site agreement.72 All rent and charges must be set out in the s 25(4)
part of the site agreement. They can not be imposed in or through park
rules.
[52] Accordingly, none of the proposed changes to the park rules which are
challenged by the homeowners in this proceeding can be made in respect
of homeowners under the MHRPA.
[53] I declare that charges may not be included in or through park rules. Further,
I declare that the proposed changes are unreasonable under s 83 of the
MHRPA and void. I make the observation that even if the homeowners had
not specifically objected to the proposed changes to the park rules, by virtue
of s 23 of the MHRPA they would be void.
71 MHRPA, s 83(3).
72 Acts Interpretation Act 1954 (Qld), s 14A provides that an interpretation of a provision
in an Act which best achieves its purpose is to be preferred to other interpretation/s.
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[54] My decision and orders have no effect on the status of the proposed park
rules as concerned persons other than homeowners under the MHRPA.
[55] I make orders accordingly.
Observations
[56] If I am wrong about the version of park rules which applied to the
homeowners before this second rule change process, I make the
observation that if any park rules applied which purported to impose
charges for parking a second vehicle and the homeowners’ visitors then I
would have declared them void pursuant to s 23.
[57] If I am wrong about whether the charges can be implemented and charged
through the park rules, I would in any event declare that the charges for a
second motor vehicle are unreasonable against homeowners under the
MHRPA. To date, they have been entitled to have 2 vehicles under their site
agreements, some have expended considerable funds to build double
carports. Homeowners parking entitlements under site agreements cannot
reasonably be unilaterally reduced through park rules.
[58] Further, homeowners often invest very significant funds into construction
and maintenance of manufactured homes. They are not caravans. The
decision to enter a manufactured home park is made for the long-term, not
unlike a decision to enter a retirement village. Their site and the premises
they construct in the residential park is their home. I would not consider the
unilateral actions of a park owner to seek to impose additional charges for
their visitors to use park facilities and visit overnight in their home to be
reasonable.
[59] The park owner suggests that other mixed-use parks charge fees of the
nature they seek to impose. However, it is not apparent from the information
from or about any of the parks they rely upon, contain a residential park for
the purposes of the MHRPA. Therefore, I would consider the information
about their charges unhelpful, even if it was relevant.
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Official source: https://www.sclqld.org.au/caselaw/QCAT/2016/058