There are various types of arrangements governing entry into retirement villages in New South Wales.
While the Retirement Villages Act and regulations set out the basic rules, each village operator can decide what form of contract it wishes to use.
More often than not, in New South Wales, retirement village operators use a lease/loan arrangement whereby a lease is given to the resident and the operator has the use of the resident’s money, or “ingoing contribution” while ever the resident lives in the village.
When leaving the village, there is usually a fee, or a “deferred management fee” payable by the resident to the village operator. These fees can amount to a significant proportion of the ingoing contribution.
People looking at entering a retirement village should consult a solicitor before signing any retirement village documents as there are many fees which a village operator can charge during the lease and when a resident leaves a retirement village.