Retirement Living Options
Understanding your contract The idea of downsizing and living in a retirement living community may be appealing, but there are certain factors which should be considered prior to making the transition from your home to ‘the village’.
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etirement village contracts are different from normal residential real estate contracts. So, it’s important to understand your rights and responsibilities and obligations under the contract, before you sign.
This is an important document which sets out the incoming resident’s rights and obligations as a village resident.
There are different types of contracts that residents and operators enter into depending on the arrangements in place at the village. You are more likely to make the right choices if you know what you want.
It is important you read and understand the various clauses in the contract as it will be a legally binding document for both you and the administering authority should you proceed on taking the offer of accommodation.
Don’t rush into making a commitment, instead, visit the village often, get to know the management staff, as well as the residents’ committee, and seek expert advice and answers to all of your questions.
If you do not understand parts of the contract, highlight them and seek further written clarification.
Residence contract If you have found the retirement village you see yourself residing in, request a copy of their standard residence contract.
Retirement village contracts are different from normal residential real estate contracts.
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Your Retirement Living – 8th edition
The contract ultimately governs the relationship between you and the administering authority.
To protect both you and the administering authority, the residence contract is a comprehensive document and should include references to: ◆ The parties in the contract and any associated conditions. ◆ Residence details such as its location, type, layout plan and size, the certificate of titles on which the village is situated, and the form of tenure (like Strata Title, a lease or licence) or purchase which applies to you. ◆ Settling-in period and your right to ‘cool-off’. ◆ The action required to terminate a contract. ◆ Communal facilities available to residents and/or separate or additional facilities allocated to you, or any optional personal services ie cleaning, laundry or meals.
◆ The amount payable, how and when it is to be paid, the basis on which any premium refund will be calculated and returned to you, and the recurrent charges and the way they are calculated. ◆ Any current, planned or proposed expansions to the village and future extra facilities or future services offered. However, there is no guarantee that these proposals will be completed as planned and any funds established by the administering authority to which you contribute, and the purpose of those funds. Before signing the residence contract you should be provided with copies of the following documents: ◆ Residence contract and premises condition report. ◆ Financial statements presented at the last annual meeting of residents, including a written statement of any changes at the village since that meeting which may significantly affect your decision to enter the village. ◆ Residence rules and dispute resolutions. ◆ Remarketing policy. ◆ Any other policy which may impact on the premium you are asked to pay. It is strongly recommended you seek legal advice and ask for a copy of the contract before signing.
