Retirement Village Agreement – to get reviewed or not?

You have made the decision. You are going to enter into a retirement village. The nice people at the Village have given you an agreement to look at together with a bundle of documents. The documents suggest getting them reviewed by a solicitor.

 

Should you bother?

You probably should. It is sometimes said that entry into a retirement village is not a financial investment but a lifestyle decision. That said it is a big step. You should understand how retirement living works and the pro’s and con’s generally but also the specifics of the village you are considering.

The documents that you sign will determine your rights and obligations:

  • Entry to the Village/lifestyle resort;
  • Living in the Village/lifestyle resort;
  • Exiting the Village/lifestyle resort.

 

Here are some key aspects to consider and seek advice on:

  1. Understanding Fees & Costs

  • Entry Costs: Clarify whether it’s a refundable deposit, purchase, lease or a license to occupy. Most Villages in South Australia do not involve outright ownership of a unit but rather provide contractual rights or a “license” to occupy unit. Your entry fee for your rights to occupy is sometimes described as an incoming contribution. In some facilities known as Lifestyle Villages you may purchase a building but pay for the use of the land on which it is situated.
  • Ongoing Fees: Understand ongoing service charges and how they may change over time.
  • Exit Fees: Confirm the calculation method and amount, including any deferred management fees and the timing of when they are payable to you or to your estate on your death.3

 

  1. Living Arrangements

  • Your Rights: Ensure your rights to occupy and use the unit are clearly defined.
  • Alterations & Repairs: Clarify who is responsible for maintenance and renovations of your unit.
  • Shared Facilities: Review the rules for accessing communal areas and the relevant by-laws that apply to residents generally.

 

  1. Health & Care Services

  • Check whether the agreement includes provisions for care services.
  • Verify flexibility for increasing care needs without financial or legal issues.

 

  1. Dispute Resolution

  • Ensure the agreement outlines clear processes for handling disputes.

 

  1. Exit Strategy

  • Understand what happens if you leave, including unit resale or re-letting processes.
  • Confirm timelines for refunding your deposit or share of proceeds.

 

  1. Legal & Financial Review

  • Seek a lawyer to review the agreement in detail.
  • Ensure compliance with local retirement living laws (e.g., the Retirement Villages Act in your jurisdiction).

 

  1. Independent Support

  • Contact relevant consumer protection bodies or advocacy groups for additional advice tailored to your location.

 

Having a professional review ensures you fully understand the terms and safeguards your interests. If you’re in South Australia, the Office for Ageing Well may also provide guidance.

 

Not sure where to start with the documents that you have received? Speak with our friends at Donlan Lawyers on 08 8344 6422, who will be able to assist you. Alternatively, contact your Pinnacle Adviser to discuss further.

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