If you or a loved one are considering entering into a retirement village contract, you need to be sure that you have all the information available to make a considered decision.
Retirement village contracts are complex and deal with a multitude of issues including the type of occupation or tenure by the resident and costs that will be incurred and charged by the operator.
The standard contract covers many matters including:
- entry costs
- recurrent charges
- the settling-in period
- residence rights
- services and facilities
- alterations and additions
- repairs and maintenance
- sharing of capital gains
- departure fees.
In addition to the retirement village contract there will be contracts or agreements as to the residents occupation of the premises by way of either:-
- Loan and Licence agreement
- Property purchase in either Strata or community schemes
- Share purchase in Company title schemes
- Long term lease
- Rental agreement
There are significant differences in the rights of the residence depending on which form of occupation is provided by the retirement village operator. It is wise to ensure that you have your lawyer review the contract documentation as provided and that you arrange for your accountant to review the financial costs of the proposed contract.
With many of the different types of residential occupation contracts, you will need your lawyer to attend to transfer of property into your name.
The retirement village may charge substantial costs at each stage of the retirement village contract and residents occupation such as:-
- Entry Fees
- Ongoing Fees whilst in residence
- Exit Fees
Also consideration should be given to whether the resident will be independent living or need assisted living facilities in the near future. Can the village provide both without the need for the resident to move and incur further costs.
NSW Law requires that an operator of a retirement village provides certain disclosure information as to the costs and charges that may be incurred prior to entering into a village contract. After receipt you must be given 14 days to review the contract and terms before signing. This time period will give you time to seek accounting and legal advice as to the contract and the terms.
Should you need assistance with entering into a new retirement village contract or are needing to exit due to health and medical concerns, please contact our team of Lawyers at The Quinn Group on (02) 9223 9166 or submit an online enquiry form