Under new law retirement village move to be like transacting a home: Owen Hodge

Moving into retirement villages is said to be becoming easier due to a NSW government change to the Retirement Villages Amendment (standard contract) Regulation 2013 this month, and will be alike to buying and selling a home.

Owen Hodge Lawyers' Elder Law specialist, James Kelly, said that the legislative changes are welcome for consumers.

"The changes will make the transaction of moving into a retirement village more like buying and selling your home," said Kelly.

"The biggest amendments to these current reforms are the introduction of a standard village contract and disclosure document in addition to a general inquiry document.”

In the past, he noted that documentation had been very lengthy - even up to 300 pages with complex legal arrangements.

"I have seen many seniors over the years struggle to understand the complex nature of the subject matter and in some cases sign contacts without understanding what they are signing," he said.

The reformation of the retirement village law is seeing a shift towards a consumer focus. He notes that this was necessary to ensure that the seniors understood the legal ramifications of what they had been signing.

Several questions and tips which should be asked prior to moving into retirement villages include:

1. Do not make a decision to move to any retirement village before doing your homework/research first to explore the various options that are available to you. Questions to ask - why are you moving? What options are available in the area you are considering?

2. Can I afford to live at the retirement village? What are the ongoing fees and how are they determined each year?

3. What is the financial position at the village? Is there a history of deficits or surpluses in the retirement village budget. How much are the departure fees, commission and other expenses when you leave?

4. Have you spoken to your family and your doctor and other support people about a move possibly from an area where you have lived for a long time to where you are not so familiar?

5. Have you spoken to your lawyer about the legal issues around such a move before signing the contract? What are your obligations and what obligations does the operator have to you? Does the operator have a mortgage on a property where the village is located and if so what are the implications for you?

6. Is there a history of disputes between the residents and the operator of the village?

7. Is ongoing care available ie aged care if and when you need it?

Source: Owen Hodge Lawyers