Scenario
Jane’s parents are Dick and Dora. They’re considering their future, in particular where they live. While they love their home it has a large yard and more rooms than they care to clean and maintain. They have reduced their options to staying put for the foreseeable future, moving to a retirement village either locally or on the coast, or “downsizing” by selling their home and buying a unit closer to town.
Guidance
One of the key issues they have to be aware of is the loss of independence that goes with moving from their own home to a form of community living which includes some form of community decision making. Residential villages (of whatever form) usually have a residents committee and units within complexes have a “body corporate”. Each but particularly the residents committee may be perceived by some as too intrusive.
The four common structures commonly used in retirement villages and loan/licence, lease, strata and company title.
Your rights and the obligations of operators of retirement villages are set out in the Retirement Villages Act 1999 and its Regulations.
Retirement village contracts have to conform to that prescribed in the Regulations. You must be provided with a disclosure statement at least 14 days prior to entering into a village contract, which sets detailed information about the village.
You need to understand the contract you are considering signing, particularly as it applies to capital gains and losses, entry contributions, maintenance fees, special levies, deferred management fees, ongoing fees and your other significant obligations and benefits.
You have substantial rights and can not be made to leave the village unless an order has been made against you by the Consumer Trader & Tenancy Tribunal and then only in specific circumstances.
You have rights to access to a wide range of documents (at no cost) including, but not limited to, a site plan of the village, plans showing location and floor plans, statements of proposed expenditure and approved expenditure, village rules and trust deeds for any trust for which residents are required to deposit money.
Other rights include availability to a limited cooling off period and a condition report in relation to the accommodation you are considering taking up.
Don’t just “sign up” without understanding the detail.
Information: Blackwell Short Lawyers, Aged-Care Rights Service, Office of Fair Trading, It's Your Life and www.agedcare.com.au.