Residence contracts |
A residence contract is a legal agreement between a retirement village operator and a resident. It contains information about the resident´s right to live in a retirement village, and both parties´ rights and responsibilities.
By law, you must register your retirement village scheme before entering into a contract. Residence contracts for unregistered villages schemes are invalid and can be terminated.
Minimum requirements
The residence contract must contain information such as:
- the start and end dates of the cooling-off period
- the resident´s right to withdraw the contract before the cooling-off period ends
- the ingoing contribution amount (the one-off amount residents pay to secure their right to live in a retirement village)
- the general services charges (the charges all residents pay for general services such as management, administration, garden, maintenance, village shop and recreation) and the dates they are due
- the personal services charges (the charges residents can pay for optional personal services, such as laundry, meals and cleaning) and the dates they are due
- the maintenance reserve fund amounts (the amounts of general services charges that residents pay for village maintenance and repair) and the dates they are due
- any relevant statutory charge
- insurance details
- the exit fee amount (the amount residents may pay or credit an operator when they leave the unit)
- any conditions on a resident´s right to live in the village
- a resident´s exit entitlements (the amount an operator must pay or credit the resident when they leave the unit)
- whether a resident can re-sell their right to live in the unit
- the resident´s right to see the village´s financial statements
- the dispute resolution process
- the operator´s and resident´s rights to terminate the contract.
Other information required
When a resident signs a contract, you must immediately give them a single, bound document containing:
- a signed copy of the residence contract
- the public information document, if you have not already given it to them
- an unsigned copy of any additional contract that forms part of the residence contract, such as a lease or loan agreement.
Cooling-off period
Once a resident enters into a contract, they have 14 days to withdraw from it without penalty. This is called a cooling-off period.
If the cooling-off period´s end date changes due to another contract or event, the operator must tell the resident in writing within 14 days of signing the other contract or the event occurring.
Last reviewed 07/12/2011 |
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