A retirement village residence contract explains the rights and responsibilities of the resident and the operator. It must follow the required writing standards.
The minimum requirements for a residence contract are set out in the Act. These include:
Right to occupy, not own
If the contract gives the resident the right to live in the residence (through a lease, licence or share ownership), the front page of the residence contract must clearly state that the person is not buying the residence. It is an offence to suggest or imply that the person is purchasing the residence in these circumstances.
Independent legal advice statement
- a clear bold statement advising the prospective resident to seek independent legal advice, and that the resident’s rights under the act cannot be taken away or limited by the contract.
Residence details
- details about the residence and type of occupancy (for example, lease, licence or shares)
- the operator’s name and contact details
- how the resident will be notified if the operator changes.
Retirement village details
- the name and location of the village
- whether the Minister has granted any exemptions to the village
- details of the certificates of title
- details about any trustee
- facilities available to the village
- details of any development planned or undertaken.
Resident rights
- to cancel the contract during the cooling-off period
- to cancel the right of occupation during the 90-day settling in period
- to occupy the residence
- to terminate the contract and receive an exit entitlement, including the amount of the exit entitlement, or how this is calculated.
Financial obligations
- details about the resident’s incoming contribution, including the amount and when it is payable
- details about the recurrent charges the resident must pay
- any fees or charges related to remarketing the residence, including how they are calculated
- when the village financial year begins and ends.
Policies
- the operator’s dispute resolution policy
- the operator’s surplus and deficit policy.
Services
- services and facilities provided or arranged by the operator available to all residents
- optional personal services available and any associated costs.
Alterations refurbishment and reinstatement
- whether residents can make alterations, and their responsibilities for those alterations when exiting
- who is responsible for repairing or replacing fixtures, fittings and furnishings
- who is responsible for reinstating or renovating the residence when the resident leaves.
Residence contract example template
Below is an example of a good practice residence contract which complies with the requirements of the Retirement Villages Act 2016 and the Retirement Villages Regulations 2017. It does not constitute legal advice. There are other ways to draft a residence contract which will also comply with the requirements of the Act and Regulations. If you require advice about drafting a residence contract, you should obtain independent legal advice.
Download the example Residence contract Template (92.5 KB DOCX)
Contact the Retirement Village Unit
Email: retirementvillages@sa.gov.au
Related information
On this site
- Preparing a residence contract
- What a disclosure statement must include
- What a remarketing policy must include
- Ending a residence contract
