In addition, retirement village operators will be required to provide prospective residents with a general inquiry document that explains the services and facilities available in the village and a disclosure statement, before a contract is signed.
These reforms aim to make it easier for prospective residents to compare the costs and conditions between villages before entering into a contract.
The standard contracts will be in "plain English" and cover issues such as:
- the type of residence right the resident is acquiring in the village;
- all costs the resident must pay to enter, live in and leave the village;
- if and how any capital gains are to be shared;
- the settling-in period;
- services and facilities;
- alterations and additions; and
- repairs and maintenance.
The standard contracts have been drafted by a committee of industry and legal experts as well as retirement village residents. Village operators are able to adapt the standard contract, by adding their logo and including additional terms at the back of the contract, as long as the amendments do not conflict with the retirement village laws. However, the standard terms cannot be changed.
Templates for standard contracts, general inquiry document and disclosure statement are available from NSW Fair Trading Click here
Hunt & Hunt can assist you in understanding how these reforms will affect you. To discuss this and any other compliance queries, please contact a member of your local Hunt & Hunt office
Harold O’Brien, Sydney (North Ryde) +61 2 9804 5753 firstname.lastname@example.org
Tony Raunic, Melbourne +61 3 8602 9266 email@example.com
Rick Harley, Adelaide +61 8 8414 3373 firstname.lastname@example.org
Darren Miller, Perth +61 8 9488 1300 email@example.com
Antony Logan, Hobart +61 3 6231 0131 firstname.lastname@example.org
Chris Osborne, Darwin +61 8 8924 2616 email@example.com
Disclaimer: The information contained in this e-alert/update is not advice and should not be relied upon as legal advice. Hunt & Hunt recommends that if you have a matter that is legal, or has legal implications, you consult with your legal adviser.