What a retirement village disclosure statement must include

The disclosure statement helps prospective residents understand the financial arrangements of the village.

The minimum requirements for a disclosure statement and its required form are set out in the Act and Regulations. These include:

Fees and charges

all fees and charges:
- before entry
- during occupation
- on exit
descriptions and use of fees and charges, including definitions of funds
worked examples of estimated fees and charges if the contract ends after 2, 5 or 10 years (clearly marked as estimates) and any assumptions used.

Exit entitlements and fees

when the exit entitlement is payable
how exit entitlements and exit fees are calculated.

Village arrangements

insurance arrangements for the village
utilities, services or facilities within the village the operator benefits from (for example, embedded networks like electricity or internet)
whether residents must use specific service providers.

Occupancy details

type of tenure or occupancy right (for example, lease, licence, shares)
show the mix of occupancy types in the village (for example, how many residents have a lease, licence or share ownership).

Future projects and levies

major capital expenditure projects planned within the next 2 years, including costs and funding
special levies:
- possibility of future levies
- any current levies, including purpose, amount, frequency and end date.

Aged care and other information

arrangements for aged care transitions
a statement that:
- the disclosure statement is not part of the residence contract
- prospective residents should understand the contract terms
- legal and financial advice is recommended
any other information required by the Regulations.

Disclosure statement example template

Below is an example of a good practice disclosure statement which complies with the requirements of the Retirement Villages Act 2016 and the Retirement Villages Regulations 2017. It does not constitute legal advice. If you require advice about drafting a disclosure statement, you should obtain independent legal advice.

Download the example Disclosure statement template (58.4 KB DOCX)