The provincial government has introduced legislation to establish minimum standards for the life leases housing market.
The Life Leases Act will implement basic protections for life lease holders and operators in the province. This new legislation formalizes several best practices already implemented in the life lease industry in Saskatchewan.
“This legislation will protect consumers, ensure continued innovation in housing development, and promote the financial viability of lease operators,” Justice Minister and Attorney General Gordon Wyant said.
A life lease is a housing option that grants lease holders the right to occupy a property for their lifetime, or for a lease period of at least 20 years. Unlike condominiums, life lease holders do not own the property. Currently, life leases are often used to create housing complexes for senior citizens, typically offering meals and social or recreational activities to lease holders.
“We recognize the challenging decisions that seniors face when they are moving to housing to better fits their needs,” Seniors, Rural and Remote Health Minister Everett Hindley said “We are ensuring that the industry continues to follow best practices in our province.”
Saskatchewan is taking a lead role in this area by implementing The Life Leases Act. This new legislation will establish several protections for lease holders, including:
* The ability for a lease holder to cancel a life lease within 10 days of signing the agreement;
* The ability for a lease holder to cancel a life lease entered into while the rental unit was under development if the property is not made available to the lease holder within 60 days of the projected completion date;
* The requirement that lease operators disclose specified information to prospective lease holders;
* The prescription of a dispute resolution mechanism; and
* The establishment of minimum notice requirements to lease holders prior to any rent increases.
The legislation also requires life lease operators to establish funds for repairs to a residential complex, and a refund fund to repay a lease holder if that lease holder’s entrance fees are refundable. If a residential complex is under development, lease operators must appoint a trustee to hold the amounts paid by lease holders with respect to that residential complex. Lease operators must also maintain minimum insurance at a residential complex.