Retirement Village Regulations

Buying into a retirement village can mark an exciting next chapter of your life. It shouldn’t be a stressful time. However, retirement village contracts are often very complex. 

The contract is prepared by the retirement village operator or their solicitors and it is important that you obtain independent legal advice as to the terms of the contract before you sign it and move in.

The usual structure of a retirement village contract is that you do not actually own the unit. The contract is commonly a long-term lease agreement, for instance, a 99 years lease and you make an initial lump sum contribution.

When you decide to permanently vacate the premises, certain amounts are deducted from the initial contribution. These amounts are usually referred to as a “departure fee” or “exit fee” or a “deferred management fee” or a combination of these. These fees are in addition to the recurrent service fees that you pay to obtain the benefit of the common services in the village. Those services might include the use of tennis or squash courts, a library or reading room, a billiards room or games room or an on-call nursing service together with administration and maintenance services. You also pay for legal costs, agency commission and fees and repairs to your unit when you vacate.

It is also important to clarify whether you obtain the benefit of any increase in the value of the unit (capital gain). If your unit increases in value, you should obtain the benefit of a share of the capital gain, usually 50%, as the holder of a 99 years lease.

It is important that you understand you are buying a lifestyle and not an investment and often what you (or your estate) get back from your initial contribution when you permanently vacate the unit is less than what you put in.

Please contact the team at Conditsis Lawyers to demystify the process of estate planning.

Send an online enquiry

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Areas Of Conveyancing & Property Law

We can assist you in any of the following areas of Property Law, and when you are ready one of our team will be happy to answer any questions that you might have.

When you need a Property Law specialist, contact our team at Conditsis Lawyers. Come visit us at our offices around NSW including Sydney, Wollongong, Newcastle, Gosford and on the Central Coast. We have the depth of experience and knowledge of property law that you need to obtain the best possible outcome for your conveyancing and other property needs.

Property Law

Commercial Law

Our Key People | Conveyancing & Property Law

Michelle Bromfield

Senior Associate & Practice Group Leader | Wills, Estates, Conveyancing & Litigation

Merrin Firth

Legal Secretary | Wills, Estates, Commercial & Property Law