(1) A former occupant of residential premises in a retirement village may choose to—
(a) discharge (wholly or in part) as the liability arises the former occupant's liability for recurrent charges that arise after the former occupant permanently vacated the residential premises; or
(b) discharge the liability mentioned in paragraph (a) (wholly or in part)—
(i) for a former occupant who is a registered interest holder (other than a registered long-term sublessee) in relation to the residential premises—from the proceeds of the sale of the premises; or
(ii) for any other case—from the money payable to the former occupant by the operator of the village under a village contract.
(2) The former occupant must notify the operator in writing of the former occupant's choice as soon as practicable after permanently vacating the premises.