Residence contracts |
A residence contract is a legal agreement between you, as the resident, and the retirement village operator.
The contract contains the conditions of your right to live in the retirement village.
Note: Before you sign a contract, ensure the operator has given you a copy of the village´s public information document.
Purpose of the contract
The contract gives you the right to live in a village unit, use shared facilities and access services. It also restricts how your right to reside can be sold or transferred.
Minimum requirements
By law, the residence contract must contain certain information, including:
- the start and end dates of the cooling-off period
- the ingoing contribution amount (the one-off amount you pay to secure your right to live in a retirement village)
- the general services charges (the charges you pay for general services such as management, administration, garden, maintenance and recreation)
- the personal services charge (the charge you can pay for optional personal services, such as laundry, meals and cleaning)
- the maintenance reserve fund amounts (a part of your general services charges that pays for village maintenance and repair) and when they are due
- any relevant statutory charge
- insurance details
- the exit fee amount (the amount you pay or credit the operator when your unit is sold
- any conditions on your right to live in the village
- your exit entitlements (the amount an operator must pay you after your unit is sold)
- whether you can re-sell your right to live in the unit
- your right to see the village´s financial statements
- the dispute resolution process
- the operator´s and your rights to terminate the contract.
Other information you´ll receive
When you sign the contract, the operator must immediately give you a document containing:
- a signed copy of the contract
- the public information document, if you have not already received it
- an unsigned copy of any additional contract that forms part of the contract, such as a lease or loan agreement.
Cooling-off period
Once you sign a residence contract, you have 14 days in which you can cancel it. This is called a cooling-off period. It means that you can withdraw from the contract within 14 days without penalty by writing to the operator.
If the cooling-off period´s end date changes due to another contract or event, the operator must tell you in writing within 14 days of you signing the other contract or the event occurring.
Last reviewed 07/12/2011 |
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