Retirement is something we all dream about, but usually don’t have time to plan for. Now that the time is approaching, and you are trying to decide if life in a retirement village is for you, let us try and help you make that choice.

Making the right decision
Proper research can save time and anguish. Once you have made this step there are many important things to take into account before finalising your decision. There are many thousands of retirement villages in Australia, each of different style and size and providing a range of services and facilities.

Accommodation and service options in general
- Independent Living Villages.
These provide accommodation for the independent and active. Most offer choices of studios, one, two and three bedroom self-care apartments and villas/cottages.
- Assisted Living.
Often referred to as hostels, assisted living villages provide assistance with showering, personal care and dressing (when required). All meals and a laundry service, with 24-hour staffing.
- Nursing Home/Dementia Care.
These offer a high level of care for those who are frail, with qualified nursing staff on 24-hour call. Most have diversional therapy programs, where residents participate in exercises and games.
- Community Care and Therapy Services.
Provides care to individuals who through poor health or frailty require limited assistance in daily lives. May include personal care, meal preparation and cleaning. Some villages contain a mix of styles of accommodation, allowing residents to transfer when and if the need arises.

Protection
From July 2001 the main laws regulating retirement villages are: The Retirement Villages Act 1999 which sets out the rights and obligations of residents and operators and explains what information must be given to prospective residents. It sets out the process of entering into a village contract, provides for the establishment of Residents Committees and explains how and when a contract can be ended. The Retirement Villages Regulation 2000, prescribes various forms, including a disclosure statement and condition report. It contains a set of model village rules and prescribes what can and cannot be included in a village contract. The Residential Tribunal Act 1998 sets out the process by which disputes between residents and operators are to be resolved. The Fair Trading Act 1987 deals with general fair trading matters such as advertising, promotional or other sales material. The Strata Schemes Management Act 1996, deals with retirement villages subject to a strata scheme. And The Community Land Management Act 1989. Copies of the legislation are available to read at most public libraries. They can also be downloaded from www.fairtrading.nsw.gov.au

What is not covered by the Law
The Act does not apply to the following complexes, even though these complexes may cater exclusively or predominantly to retired persons: Caravan parks and manufactured home estates, Commonwealth Government funded aged care hostels, Nursing Homes, Department of Housing tenancies. Or accommodation provided by the Aboriginal Housing Office, boarding and lodging houses, and Group Homes.

Types of Contracts
There are generally five different types of contractual arrangements that are offered by village operators. However, some of the following information may differ in individual circumstances.

Loan and Licence Arrangements
This is the most common arrangement in retirement villages, being the way most churches and charitable organisations operate their villages. You pay a fixed up-front interest free loan – an ingoing contribution to the operator to enter the village. Sometimes a proportion of the loan is non-refundable (often called a ‘donation’). Recurrent charges, usually on a fortnightly or monthly basis, are also payable. The licence agreement grants you the right to occupy the premises, but you do not own the premises nor do you have a legal interest in it. Sometimes a separate loan agreement sets out matters relating to your loan.

Leasehold Arrangements
Leasehold is a common contractual arrangement offered by privately run villages. The lease, usually expressed in 99 or 199 years, is registered on the title deed held by the Land Titles Office, which gives you the added protection should the village be sold. You pay an ingoing contribution in the form of an up-front deposit and prepaid rent or premium. The amount will vary depending on market forces, similar as if you were buying the premises. Recurrent charges, usually on a monthly or quarterly basis, are also payable. The timing of payments by the operator on vacation will depend largely on whether you are considered an owner or a non-owner under the Act. This will depend on the wording of your contract and is something you should get legal advice before signing.

Strata Schemes
Selling premises in a strata scheme is another common contractual arrangement offered by privately run villages. You pay the agreed purchase price to the owner (eg. the former resident or the operator). This entitles you to occupy the premises and become a member of the owners corporation, as with any other strata scheme. You will have to pay strata levies, on a quarterly basis, to the owners corporation. Unlike other strata schemes, however, you will be required to enter into a service contract with the operator before you move in. There may also be an existing agreement in place between the operator and the owners corp. This agreement, often for the life of the village, is for the operator to assist the owners corp to carry out its functions in relation to the management and administration of the common property. You usually have the right to sell your premises at any price you like. You may however, under the terms of your service contract, have to pay the operator a share of any capital gains as well as departure fees and other charges from the proceeds of the sale.

Rental Arrangements
A small number of villages, usually offering self contained premises, operate solely on a rental basis. Some villages set aside a certain proportion of premises for rent for persons with little or no assets. You sign a residential tenancy agreement and pay rent. Remember though, that the agreement may contain a term excluding you from coverage of the retirement village laws. If this is the case, your agreement will be covered by the Residential Tenancies Act 1987.

Company Title Schemes
A small number of privately run villages operate under company title. The village is owned by a company, in which you purchase shares at market value. The shares give you the right to occupy the premises. As with strata villages you are considered under the retirement village laws to own the premises and have similar selling rights. A Board of Directors, appointed by the shareholders, operates the village. You will be required to comply with the company’s Articles of Association.

Signing Up
Information you should get before signing a contract: Firstly you must get a copy of the Department of Fair Tradings booklet, Retirement Village Living (details at end). On expressing interest the operator must give you a disclosure statement free of charge. This is very important as the Act does not allow the operator to enter into a contract for at least 14 days after you are provided with a disclosure statement, so there is no need to rush your decision. Obtain statements from a number of villages, this will allow you to compare the various arrangements on offer and identify the more suitable village.

A disclosure statement contains:
The size and location of the village. The proximity of the village to facilities. Contact details for the current operator/s and the Residents Committee (if any). What measures have been made for residents security. The type of contracts you may be asked to sign. The type and level of services and facilities available. Full financial management details. Details of available premises in the village. Details of ownership including the year of construction and the original developer. Details of residential care facilities. Details of compliance with the legislation.

Other useful information
Obtain examples of any contracts you may be asked to sign (without the blanks filled in): The village rules, audited accounts for the last three years and the most recent quarterly accounts of income and expenditure.

Rights of Privacy
The operator or an authorised person may only enter your premises in the following circumstances: In an emergency or if there is reasonable concern about health or safety. To carry out urgent repairs or to carry out general maintenance (with seven days notice). To carry out a general inspection of the premises and in accordance with an order of the Residential Tribunal.

Checklist
Before signing a contract you should ask yourself the following questions:

• Have you thought about alternate housing options other than moving into a village?
  
• Have you looked at a sufficient number of villages to be able to compare the services, facilities and financial arrangements?
  
• Have you fully discussed your decision with your family, friends or advisers?
  
• Have you received a disclosure statement? Is it more appropriate to live in self-contained or serviced premises?
  
• Do you fully understand the contract you are about to sign or received adequate advice from an independent solicitor?
  
• Are the services and facilities what you need? Will this still be the case as you get older or if you get sick?
  
• Can you afford to enter the village and live there comfortably, even when the recurrent charges rise?
  
• Will you be eligible for rent assistance from the Government?
  
• Are there local facilities such as doctors, shops, hospitals, libraries, churches, clubs and public transport near to the village?
  
• Do you understand your rights of occupancy? Will you be able to make changes to the inside, or have someone visit or live with you?
  
• Are you able to keep a pet?
  
• Can you do your own gardening?
  
• Will the premises still be suitable if your needs and abilities change? For instance, stairs and bath rails.

Where to get more detailed information
The Department of Fair Trading produces the booklet Retirement Village Living – An overview of the NSW Retirement Village Laws.
Telephone: 13 32 20.
Website: www.fairtrading.nsw.gov.au

The Aged-Care Rights Group, an advocacy service for existing and prospective residents.
Telephone: (02) 9281 3600 or 1800 424 079 (outside Sydney).

The Seniors Information Service, who produce a number of suitable directories. Telephone: 13 12 44.

This information is to be considered as a guide only. For full details you should contact the appropriate authority.