| In the Retirement Villages Act 1999 (the Act) -
"A retirement village is premises where older members of the community or retired
persons reside, or are to reside, in independent living units or serviced units, under a
retirement village scheme."
Note: Nursing homes, mobile home villages and caravan parks
are not retirement villages under this ACT.
WHY IS THE LAW CHANGING?
The Retirement Villages Act 1988 has regulated the retirement
village industry since 1989. However, the industry has changed and developed over
the last decade and a review of the legislation was needed to address changes affecting
both consumers and operators.
The new legislation provides better clarity for both consumers and
operators about their rights, responsibilities, on-going financial commitments and how to
cost effectively deal with disputes.
WHEN WILL THE CHANGES HAPPEN?
The new changes are planned to be introduced from 1 July 2000.
HOW WILL THE NEW ACT HELP
YOU?
Better Information
- Operators of existing retirement village schemes must give each
resident a written statement detailing changes as a result of the new Act to their
residence contract. This must be done within six months of commencement of the Act.
This does not mean that other changes can be made to an existing residence
contract.
- There is a new standardised format for the Public Information
Document which operators must give all prospective residents. This will make it
easier for people to compare essential and significant features of different villages.
- Details of mandatory funds established by the operator for the
preservation of the village, plus details of the ingoing and ongoing resident's
contributions are to be included in the Public Information Document.
MONEY MATTERS
- The money you pay, which is called an "ingoing
contribution" and includes the deposit, is kept in trust. It will be held until
settlement day or expiry of the 14-day cooling-off period, whichever comes last.
- You will also have to pay into special Funds to maintain the standard
of village facilities and services. These Funds are required for both existing and
future retirement village schemes. They are called the Capital Replacement and
Maintenance Reserve Funds. The new Act outlines how these Funds are to be used and
operated.
- Quarterly Statements for the funds and Annual Reports of accounts for
the village must be made available to residents.
- The method of working out any exit fee must be included in the Public
Information Document.
RESIDENT PARTICIPATION
Under the Act residents may:
- establish a residents' committee.
- make, change or revoke by-laws for the village through the residents'
committee and in consultation with the operator.
- request information on the Capital Replacement and Maintenance
Reserve Funds from the operator.
- participate in meetings to contribute to village processes.
MORE INFORMATION
Moving into a retirement village is a major financial
commitment and lifestyle change.
You will sign a contract which is a legally binding
document. You have a period of 14 days known as a cooling off period. During
this time you can rescind the contract without any penalty.
Always seek advice from a number of trusted advisers.
These advisers may be your solicitor, accountant, financial adviser, family or
doctor (health issues). |
