From 1 October 2013 there will be one less thing to worry about when trying to choose which Retirement Village is right for you. Making a decision for this next chapter of your life is an exciting time, although it can be somewhat overwhelming. You want to make sure you choose the right location and facilities for you and your family and the last thing you want to be thinking about is reading and comparing the fine print.
Up until now contracts for Retirement Villages have been often confusing and hard to read. There are various forms of Retirement Village contracts. These are usually one or a combination of a lease, strata title, loan agreement or occupancy agreement.
The good news for those who are looking into organising a retirement home for themselves or a loved one, from October, all retirement village contracts will become standardised, thereby reducing the stress and confusion on retirees and their families, in what can be a major lifestyle decision. This decision by the state government is long overdue, and will eliminate any worrying clauses that retirement village operators may insert into the village contracts.
The new form of contract will also be written in clearer, easier to understand language, and will remove most of the legal jargon contained in the current retirement village contracts. Even though this is the case, it is still suggested that you seek specialised legal advice, as there are certain aspects of village contracts which will need to be explained thoroughly to you (i.e. recurrent charges and departure fees).
Although the village contracts and disclosure statements are being standardised, this does not apply to stand-alone contracts (i.e. car parking licenses and storage licenses). This means that village operators may seek to include unfriendly clauses in such stand-alone documents, and is yet another reason to seek legal advice in relation to any documentation you receive from a retirement village.
To read more on residential options for seniors, click here to view our Plain English Guide to Seniors Living.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
