Our experienced lawyers can help you understand your retirement village contract so you can focus on moving in with confidence.
Retirement village contract
The retirement village contract is an agreement between yourself and the retirement village owner. There are several different ways that these can be structured and may differ from village to village. Some of the most common types of retirement village contracts are:
- A licence. This is where you give the retirement village owner a sum of money in return for the right to stay in the village. Part of your money may be returned to you when you leave the retirement village. This means you don’t actually own the property you live in;
- A long-term lease. This is where you have the right to live in the property for a long time, usually 99 years, but you don’t own it. You have very specific rights under your lease; or
- Strata title. This is similar to purchasing the property and you have rights and responsibilities just like an owner. This is often the most expensive way to enter a retirement village but you can sell your strata title when you leave the retirement village.
Regardless of which type of retirement village contract you’re entering into, you should be given a copy of the retirement village sale contract at least 21 days before you need to sign it. This gives time for you and our lawyers to review it.
The retirement village owner must also give you access to a range of information including:
- A factsheet to help you compare retirement villages;
- The site plans;
- Detail about the costs of moving into the village, living in it and leaving your property;
- Detail of the services they will provide you in the village; and
- Any rules of the village that you’ll need to follow.