Retirement Village Contracts
13 Oct 2015
We recently assisted a client moving into a retirement village. The client required quick and clear legal advice on the terms and conditions of her retirement village contract, as well as an explanation of her obligations as a resident of the retirement village.
Every such contract is covered by the Retirement Villages Act 2012 and therefore must comply with the Act in form and substance.
When Buying into retirement villages, it is crucial to ensure that the terms of the village contract comply with the legislation. If there are any inconsistencies in the village contract then the legislation will prevail.
Some areas to look out for in the retirement village contracts;
- Fees: there are formulas provided for working out the different fees and procedures for amending and reviewing those fees in line with the legislation;
- Sale process: The Village Operator cannot interfere with the sale process of a property, nor place limits on how the owner carries out the sale process;
- Alterations: The Village Operator must not unreasonably withhold consent if the owner wants to make some alterations to the premises, provided those alterations are reasonable;
- Refurbishment on vacation of property: The Legislation indicates that the vacating owner cannot be forced to refurbish the unit. They are required to carry out the necessary cleaning works and leave the property in a standard similar to its initial condition;
- Resolution: Any resident can apply to the Tribunal to resolve any disputes that they may have with the Village Operator.
If you require any assistance, contact our Property Law team today.