Entering a retirement village residence contract

When you have chosen a retirement village, you will need to sign a residence contract for your chosen residence. This will include giving personal and financial details.

Your residence contract will be legally binding for both you and the operator of the village.

Write down any questions you have about the village, the services it offers, the residence contract and any related documents. This will help you get the information you need.

Information the retirement village must give you

The village operator must give you certain documents and information. Take time to read and understand them. It's strongly recommended that you get legal advice before you sign.

If you are unsure about anything, ask the operator for written clarification. Once you sign, the contract can only be changed if both you and the operator agree.

All retirement village contracts and information must:

• be written, in clear, plain English, and use a font size of at least 12 points
• fully explain the arrangements for your occupation
• include and match any verbal promises made to you
• comply with the Retirement Villages Act and Regulations. If the contract does not comply, the Act takes precedence.

The documents and information that must be provided to you are:

The residence contract is a legally binding agreement. It sets out your rights and responsibilities and those of the village operator.

Write down any verbal promises about services or exemptions. Check they are included in your residence contract or ask for them in writing before you sign.

If the residence contract is not consistent with the Act, the provisions of the Act will apply.

Overview of what your residence contract should include:

Right to occupy, not own

If your contract gives you the right to live in the residence (through a lease, licence or share ownership), the front page must clearly say that you are not buying the residence. It is against the law for anyone to suggest or imply that you are purchasing it when you are not.

Independent legal advice statement

There will be a clear, bold statement advising you to get your own independent legal advice. It will also tell you that your rights under the Act cannot be taken away or reduced by the contract.

Residence details

• information about the residence and the type of occupancy you will have (for example, a lease, licence or shares)
• the operator’s name and contact details
• how the operator will notify you if their details change.

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
• information about any trustee
• the facilities available at the village
• details of any development planned or underway.

Resident rights

• your right to cancel the contract during the cooling‑off period
• your right to cancel your right of occupation during the 90-day settling in period
• your right to live in the residence
• your right to end the contract and receive an exit entitlement, including when it will be paid and the amount you will receive or how it will be calculated.

Financial obligations

• details about your incoming contribution, including how much it is and when you need to pay it
• details about the regular, ongoing charges you must pay
• any funds you contribute to and their purpose
• any fees or charges related to remarketing the residence, including how they are worked out
• the amount of, or manner of calculation of, the exit fees you must pay when you move out
• the start and end dates of the village’s financial year.

Policies

• the operator’s dispute resolution policy
• the operator’s surplus and deficit policy.

Services

• the services and facilities provided or arranged by the operator that are available to all residents
• optional personal services you can choose, and any costs associated with them.

Alterations, refurbishment and reinstatement

• whether you can make alterations to the residence, and what your responsibilities are for those alterations when you leave
• who is responsible for repairing or replacing fixtures, fittings and furnishings while you live in the village
• who is responsible for reinstating or renovating the residence when you move out.

The village operator must give you a disclosure statement before you sign a contract. It should help you understand the financial details of the village by explaining the costs of living in the village.

It is not part of the residence contract and is not a substitute for seeking independent and professional advice.

Overview of what your disclosure statement should include

Fees and charges

• all the fees and charges you will need to pay:
  • before you move in
  • while you are living in the village
  • when you leave
• clear explanations of what each fee or charge is for, including the meaning of any funds mentioned
• a statement providing worked examples of estimated fees and charges if your contract ends after 2, 5 or 10 years (these will be clearly marked as estimates), along with the assumptions used to calculate them.

Exit entitlements and fees

• when your exit entitlement will be paid to you
• how your exit entitlement and any exit fees will be calculated.

Village arrangements

• the insurance arrangements that apply to the village
• information about any utilities, services or facilities within the village that the operator benefits from (for example, embedded electricity or internet networks)
• whether you must use specific service providers.

Occupancy details

• the type of tenure or occupancy right you will have (such as a lease, licence or shares)
• information about 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 works planned in the next 2 years, including what they will cost and how they will be paid for
• information about special levies, including:
  • whether future levies may be introduced
  • any current levies, including what they are for, how much they cost, how often they are charged and when they will end.

Aged care and other information

• information about arrangements for moving into aged care if needed
• a statement explaining that:
  • the disclosure statement is not part of your residence contract
  • you should make sure you fully understand the contract terms
  • getting legal and financial advice is recommended
  • any other information required by the Regulations.

Residence rules help ensure everyone enjoys living in the village. They cover:

• visitors (short-term and long-term)
• noise
• parking
• rubbish collection and disposal
• pets
• gardens and landscaping
• using and operating village services and facilities (including any restrictions).

You can ask for a copy of the residence rules from the retirement village operator at any time while living in a village, and the retirement village operator is required by law to provide it to you.

Information about changing residence rules can be found on the when residents must be consulted page.

A dispute resolution policy is a written process the village must have to help resolve disagreements between residents and the operator or among residents.

It explains:

• who to contact about a complaint (for example, the operator or designated staff)
• how and when the operator will respond to your complaint
• how to resolve issues with other residents and when the operator may become involved
• how complaints are tracked and managed
• your right to apply to the South Australian Civil and Administrative Tribunal (SACAT) if a dispute between yourself and the operator is not resolved.

A remarketing policy explains how the village operator will advertise and relicense your residence after you leave. It covers:

• how and when the operator will start marketing your residence
• the fees you may pay for remarketing and how they are calculated
• what steps the operator will take to find a new resident
• your rights and responsibilities during the remarketing process.

The codes of conduct explains the standards of behaviour expected of you while living in the village, and those expected of the operator, staff and other residents.

Your contract requires you to follow the applicable code of conduct while living in the village.

• Codes of conduct for retirement village residents
• Codes of conduct for retirement village operators and staff

The village operator must provide you with financial statements from the last annual residents' meeting and any written update on any major changes in the village or operator's affairs that could impact your decision to move in.

A surplus and deficit policy explains how the village manages extra funds (surplus) or shortfalls (deficit) in its budget. It sets out:

• how surpluses will be used (for example, improvements or reducing fees)
• how deficits will be covered (for example, special levies or increased charges)
• your obligations as a resident if extra costs arise.

Copies of the last two annual residents’ meetings can help you understand how the village operates and what community life is like. They show:

• decisions made by residents and the operator
• issues raised and how they were handled
• plans for improvements or changes.

Residence contract holding deposit

While you are deciding whether to sign a residence contract, an operator may request that you pay a residence contract holding deposit to temporarily reserve a residence. The maximum holding deposit allowed is $5,000.

Before you sign your contract

You will have ten business days after getting the required documents before you can sign the residence contract. This is called the disclosure period.

Use this time to:

• Get legal advice: Make sure you understand the financial and legal details of the contract.
• Get financial advice: Ensure you can afford to stay in the village long-term.
• Discuss with family and friends: Talk about your move with family, friends, and / or your power of attorney.

Waiving the disclosure period

You may waive the 10-business day period if certain conditions are met. To waive the disclosure period, all of the following must apply:

1. You have received all required documents.
2. Your legal representative has confirmed in writing to the operator that they have provided legal advice on those documents.
3. You have given written notice to the operator that you wish to enter into the contract before the disclosure period ends.

Ask questions

If you have questions about any part of the contract, ask the retirement village operator for a written explanation and attach it to your contract.

Understand all the fees

Make sure you understand all the fees you will pay before moving into the village, while living in the village and when leaving the village. This can include contributions to the capital replacement fund and other fees. . Some of these fees might be capped at a maximum percentage or uncapped. Consider what this means for you.

Find more information about retirement village fees and charges.

Ensure verbal promises are recorded in your contract

Record any verbal promises about services or exemptions made by the retirement village operator or representative that has not been advertised. Ensure these promises are included in your residence contract or get them in writing.

After you sign the residence contract

Cooling off period

You have 10 business days after signing the residence contract to cancel it and get a refund. Some administrative fees may apply. The operator must refund your money within 10 business days, or after receiving your payee details.

Waiving the cooling off period

If you want to move in sooner, you can waive the right to cool off by signing a written waiver confirming you understand and accept giving up the cooling‑off period.

Settling in period

You have 90 calendar days from the date your right to move into the village begins (or from the date you sign the contract, whichever is later) to decide if you want to leave the village.

If you leave during this time, you may need to pay:

• remarketing costs
• fair market rent for your stay
• refurbishment costs (if agreed in your contract).

If you have been charged recurrent charges during this period, this will be deducted from your fair market rent.

If you made approved alterations and it was a condition of the approval that you return the residence to its original condition upon exit, you must do this or pay the cost to do so.

Your exit entitlement is usually paid after the residence is relicensed (check your contract to for arrangements specific to your village). You cannot be charged a penalty for leaving during the settling‑in period.

Premises condition report

Before your right to move in commences, the operator must give you a premises condition report. This records the condition of fixtures, fittings and furnishings.

You must:

• check the report and make sure you’re satisfied with the details
• sign the report
• return it to the operator within 10 business days of your right to move in commencing.

If you do not return the report within 10 business days, you will be taken to have agreed with it. The report must be signed by both you and the operator.

Related information

On this site

• Retirement village fees and charges
• Codes of conduct for residents
• Alterations to a residence
• Residents' rights and responsibilities
• Support services for retirement village residents

Legislation

• Retirement Villages Act 2016
• Retirement Villages Regulations 2017