**Please read this BEFORE signing a retirement home contract**
Retirement villages and retirement homes properties are on the rise.
As an ageing population, it appears that these types of communities are the ideal solution to downsize and spend retirement years, with facilities conveniently placed close to hand.
It is very easy to get caught up in the luxuries being offered in the glossy brochures and show homes
However, it’s very important to understand the contract before signing it.
Our retirement home lawyers can advise you on the risks and rewards BEFORE it’s too late.
This could have a significant impact on your finances and the inheritance for your loved ones.
Will you OWN your home in the retirement village?
Some retirement villages ask prospective residents to enter into a licence arrangement where you pay a fixed up-front interest-free loan on entry to the Village as well as fortnightly or monthly charges. This type of arrangement gives you the right to occupy the premises but does not give you any legal ownership of the premises.
In other retirement villages, you will be asked to enter into a leasehold arrangement where your lease will be registered on the title of the property and you are required to pay an upfront deposit as well as fortnightly or monthly charges.
Retirement villages can also operate under a Strata Scheme or Company Title Scheme where you purchase the premises from the previous resident or operator. In entering a retirement village under a Strata Scheme or Company Title Scheme you will acquire legal ownership of the premises, which gives you the right to sell the premises at any time for the price you wish. However, you may be liable to pay departure fees, capital gains and other charges from the proceeds of the sale.
The main concern of many people entering into a retirement village is the financial obligations they will incur under the contract. These include the initial entry cost, any recurring fees during their period of residency and the cost of leaving the premises. Departure fees can be particularly difficult to understand and will determine how much you or your estate will get back when you leave the village.
Be careful before signing a contract…
Signing a contract to enter a retirement village is the same as entering into any other contract. It is a binding legal document that will affect your future and may impact the beneficiaries of your estate. And once the contract is signed it is very difficult to get out of.
Please call us to speak with an expert retirement home lawyer
Who owns the property when you die?
Will the retirement village be entitled to part of your estate?
Will the retirement village received part of the sale?
Are there any hidden fees?
How much will it ACTUALLY cost?
We can advise you on this. Please contact us for a chat. Our solicitors are very experienced in retirement village law and contracts.