Are you thinking of downsizing from the family home and moving into a retirement village where the pool is cleaned for you, the lawn bowls is an easy stroll down your street, the social activities are plenty but you still have a garden to potter around in? Here are a few handy things you should know about entering into a retirement village contract.
To live in a registered retirement village you must enter into a retirement contract;
There certain documents the village operator must give you;
The village operator must register the retirement village before you enter into a contract;
There is 14 day cooling off period after entering into a contract
You will need to pay fees for services and facilities such as management and administration, gardening and general maintenance, recreation or entertainment facilities, other services identified in the contract.
You will also be required to contribute towards a maintenance reserve fund for things such as maintain and repair the village's capital items, pay quantity surveying fees, pay the tax liability on the fund.
There is a one-off payment securing your right to live in the village.
Upon exiting the village you may be required to pay an exit fee together with fees such as any outstanding general service charges or maintenance reserve fund contributions, any outstanding personal services charges, a share of expenses from reselling the unit, your costs associated with reinstating the accommodation unit, any other costs covered in the residence contract.
Therefore, it is important that you seek legal advice before you commit to your dream retirement home.
At Lynch Law, Patrick Lynch and Greta Wilson have extensive experience in retirement village contracts and can assist you.