Legal Considerations and Questions to Ask Before Choosing a Land Lease Community

Part 6 of our editorial series: "Living the Land Lease Lifestyle"

Land lease communities offer flexibility and affordability, but it’s essential to understand the fine print. Before signing any agreement, arm yourself with the right questions and seek independent advice.

This article outlines the key legal considerations you need to know — to protect your future and make a confident decision.

1. What Exactly Am I Signing?

Land lease contracts vary by operator and state. You’re typically signing a residential site agreement under your state’s manufactured homes or residential parks legislation.

Key questions:

• Is the agreement fixed-term or rolling?

• What is the notice period for termination (by either party)?

• Is the lease registered or unregistered?

Tip: Review it with a property lawyer or financial adviser.

2. What Are My Ongoing Obligations?

Understand exactly what your weekly site fees cover — and what they don’t.

Ask about:

• Inclusions (rates, maintenance, amenities)

• How and when fees are reviewed or increased

• Whether fees continue if you move out but your home hasn’t sold

More info: Downsizing Made Simple

3. What Happens If I Sell or Pass Away?

Even though you own the dwelling, there may be rules around resale.

Consider:

• Can I sell on the open market, or only through the operator?

• Is there a resale approval process?

• Do my beneficiaries inherit the home and lease?

You’ll also want to understand timelines for vacating and transferring leases.

4. Are There Exit or Transfer Fees?

Land lease communities typically don’t charge Deferred Management Fees (DMFs) like retirement villages do — but double-check.

Ask for written confirmation that:

• There are no DMFs or exit fees

• You retain 100% of your capital gains

• The only potential cost is the operator’s resale commission (if applicable)

5. Are My Rights Protected?

Each state has legislation that governs resident protections in land lease communities:

• NSW: Residential (Land Lease) Communities Act 2013

• QLD: Manufactured Homes (Residential Parks) Act 2003

• VIC: Residential Tenancies Act 1997

Check:

• Are disputes handled by an independent tribunal?

• What happens if the land lease community is sold?

Persona Match: David – The Financial Realist

David had his lawyer review the contract before he bought in. He made sure there were no hidden fees and confirmed his home would go to his daughter if anything happened to him.

"Peace of mind is priceless. It’s why I made this move."

Trusted Resources

• Compare Operators

• Understand Legal Protections

• Contract Advice for Downsizers

Downsizing.com.au Presents Our Editorials Series - "Living the Land Lease Lifestyle"

1. What Is a Land Lease Community?
2. The Financial Benefits of Land Lease Living
3. Land Lease vs Retirement Villages vs Strata: Which Model Is Right for You?
4. Who Lives in Land Lease Communities? Real-Life Stories from Everyday Australians 
5. What to Look For in a Land Lease Development
6. Legal Considerations and Questions to Ask Before Choosing a Land Lease Community

Disclaimer: This article provides general information only. Always consult a qualified solicitor or financial adviser before signing any land lease agreement.