Retirement Village Contracts & Fees
Retirement Village contracts are regulated by the Retirement Villages Act 1999 (NSW). A prospective tenant can enter into a retirement village in a variety of ways, for example through full ownership, a loan licence or as a tenant through leasehold or sublease. There are also strata schemes.
These contracts include some combination of fees such as holding deposits, contract preparation fees, ingoing contributions, recurrent fees, and departure fees. Therefore, it is important that you scrutinise these terms of the contracts before you sign them so there are no financial surprises along the way.
First, you will need to identify which retirement village suits you and approach them about entering their village. The operator of the village should provide you with general inquiry documents, a disclosure statement and any other prescribed documentation. During this time you will be required to pay a holding deposit which will be held in trust.
After careful consideration, you will make the decision to become a village resident. The operator will give you a draft village contract along with a copy of the signed disclosure statement. It is important you read through and negotiate the terms of your contract with your legal representative before signing the contract.
Before moving in there will be a cooling-off period of 7 days. Once you have moved in the settling-in period commences which will run for 90 days. During this time you are still able to terminate the village contract. There may be some fees in involved however they should be minor.
You should obtain financial and particularly legal advice. Moving into a retirement village can be an exciting time but it is important that you consider all your options so that you have peace of mind and are able to enjoy your retirement with reduced stress.
Should you be considering moving into a retirement village, we are here to help and can assist you through the contractual intricacies involved. Feel free to call us on 02 6562 6000.