On 29 March 2012 NSW Fair Trading Minister Anthony Roberts
released the much anticipated draft standard form retirement
village contract for public consultation.
The standard form contract will be mandatory and operators must
use the standard form for all new village contracts entered into
after the standard form contract comes into effect.
The consultation draft closely mirrors the terms of the
Retirement Villages Act 1999 (NSW) and appears user
The standard form contract is comprised of five parts:
Key Contractual Terms such as party names and
identification of premises.
Financial Terms which include entry payments,
recurrent charges, capital gain/loss, departure fees, refund
payments and liabilities on termination. The contract provides
standard terms for each of these items as well as allowing scope
for operators to depart from these standard terms and insert their
own formulae, structures and calculations for some items including
capital gain/loss, departure fees, refund payments and liabilities
Standard Terms which relate to key aspects of
retirement village living. These standard terms reflect the
different types of tenure structures of village residents such as
registered interest holders and non-registered interest holders,
and the intention is that once the contract is finalised for a
particular resident the clauses which are not applicable to their
type of tenure are removed.
Additional Terms is a blank section of the
contract where operators will be able to insert their own
additional terms to the contract. While amendments to the standard
terms will not be permitted, additional terms may be added provided
they do not conflict with the retirement village laws or the
Annexures and Definitions provides for
different documents to be annexed to the contract such as the
disclosure statement, and contains the defined terms used in the
The public is invited to provide their comments in relation to
the consultation draft. Submissions to NSW Fair Trading will close
at 5pm on Friday, 18 May 2012.
On completion of the consultation period, the feedback will be
considered and any necessary amendments will be made. The standard
form contract will then be finalised, published and prescribed into
law through amendments to the Retirement Villages Regulation
NSW Fair Trading anticipate that the standard form contract will
be published during mid 2012 and have confirmed that sufficient
lead time will be given to operators to update their existing
contracts and associated procedures.
NSW Fair Trading has also confirmed that the NSW Government
intends to look at the disclosure requirements under the retirement
village laws once the standard contract has been finalised.
Please contact Gadens Lawyers if you would like
advice or assistance in relation to the preparation and lodgment of
submissions with NSW Fair Trading or would like to understand the
implications of a standard form contract for your village.
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