A FEW KEY CHANGES IN THE RETIREMENT LIVING SPACE
As Australia’s ageing population increases, with the swathe of baby boomers coming through, the demand for retirement living is following suit. Those interested in retirement village living should be aware of what they’re signing up to. Recently, the Queensland Government has adopted new legislation which amends the Retirement Villages Act 1999, with the intention of providing potential residents greater transparency about the agreements they are entering into with scheme operators.
Key Amendments
One of the key amendments to the legislation provides for the replacement of the old-faithful Public Information Document (PID), with a Village Comparison Document (VCD). Each scheme operator should have a VCD in place, for the purpose of providing general information about the Retirement Village Scheme, including the types of accommodation, facilities and services available and the amounts payable by or to residents. Scheme operators must publish a VCD to their website and ensure that any promotional material given to prospective residents is accompanied by a VCD. Failure by operators to comply with this requirement carries penalties.
In addition to a VCD, scheme operators will also be required to provide a Prospective Costs Document (PCD) to prospective residents upon their request. A PCD is purposed with providing a summary of the estimated costs of moving into, living in and leaving the retirement village. This key amendment ought to ensure potential residents are aware of the various costs involved in retirement living from the out-set.
Another key change that advocates for the rights of residents, relates to the timeframe of when a former resident’s exit entitlement becomes payable. Scheme operators will now be required to pay the exit entitlement of former residents no later than 18 months after the termination date. Former residents are protected by this provision if their unit has not been sold or leased within this timeframe, as they are now guaranteed to receive their exit entitlement within 18 months of the end of their occupancy in the village.
There are of course many other continuing provisions of, and amendments to, the Retirement Villages Act 1999 which affect the rights and responsibilities of both scheme operators and potential residents. Both scheme operators and potential residents should be aware of their specific rights and obligations under the legislation.
For more details, more information about your rights and obligations or for advice in relation to retirement village living, please do not hesitate to contact us.
Simone Samuel is one of our Property Lawyers with a strong interest in retirement living. She assists our clients who are looking at moving into retirement living accommodation.
Important Disclaimer: The material contained in this publication is of a general nature only and is based on the law as at the date of publication. It is not, nor is it intended to be, legal advice. If you wish to take any action based on the content of this publication, we recommend that you seek professional advice.