The term “Retirement Village” is defined in the Retirement Villages Act 1999 NSW and simply means any residential complex situate in New South Wales where the majority of residents are aged fifty five (55) years or older and those persons have some form of contract with the person or organisation operating the complex.
Retirement Villages are not registered or licensed in any way. Most Retirement Villages offer self contained premises (or self care units) for those able to live independently. Some Villages offer serviced premises for those residents who require services such as meals, cleaning and personal care and others offer a combination of the two.
There are a range of Contracts used within the Retirement Village Industry. If you are not buying the premises you may be asked to sign a licence or a lease or some other form of occupation agreement. A “services contract” may also need to be signed if you are buying the premises.
The level of services and facilities available varies from village to village. Some Retirement Villages have little or no services or facilities. Other villages may offer services such as a bus, vital call system, on site management and a range of recreation and function facilities. Each Village must itemise their services and facilities in a document called a “Disclosure Statement”. Operators must have available for inspection or provide prospective residents, copies free of charge on request for the following:
A sample of all types of Village Contract;
- A site plan for the Village;
- Plans showing the location, floor plan and dimensions of a available premises;
- Budgets for the last three (3) financial years;
- Audited Accounts of the Village for the past three (3) years;
- Village Rules (if any);
- A Waiting List Policy (if any);
Village Contracts are agreements covering topics such as purchase price and other amounts paid by residents, a formula for payment on termination, vacation or death, the proportion or amount to be retained by the operator (usually based on the length of residency), whether the operator or the residence estate has carriage of the resale, were there any increase in value (or a proportion of such increase) accrued for the benefit of the resident or the residence estate.
Additionally residents are bound to comply with the Village Rules or By Laws.
At Bateman Battersby Lawyers Penrith we have acted for many residents when buying or entering into Contracts under the Retirement Villages Act. Our experience in these transactions ensures that your matter is attended to expediently and efficiently in a cost effective manner.