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Disclosure to prospective residents 

In a retirement village 

The Retirement Villages Act and Regulation contain rules about the information that operators must disclose to prospective residents before they sign a village contract.

There are two compulsory disclosure documents that must be provided. These are the general inquiry document and the disclosure statement. Both of these documents are prescribed in the Retirement Villages Regulation 2017.

The following templates for these documents can be freely downloaded, completed and saved by operators.

There are also other compulsory disclosures that have to be made on request.

General inquiry document

When a prospective resident, or someone on their behalf, makes an initial inquiry about becoming a resident, operators must provide a completed general inquiry document. It must be provided within 14 days.

The general inquiry document gives prospective residents general information about the village, including a basic overview of the types of dwellings, services and facilities that are available and an idea of the costs involved. The purpose is to help prospective residents in their search for a village.

Disclosure statement

The disclosure statement must be provided where a prospective resident, or someone on their behalf, requests a copy or expresses interest in a unit in the village. The disclosure statement contains more detailed information than the general inquiry document, including financial arrangements for the village and particular unit.

The disclosure statement must be provided to prospective residents at least 14 days before they can sign a contract. This assists residents to make informed decisions.

If the prospective resident enters into a contract with the village, a copy of the disclosure statement must be attached to their village contract. Generally, if there is any term in the contract inconsistent with the disclosure statement to the residents’ detriment, the information in the disclosure statement will override the inconsistency.

The disclosure statement must include a standard table of fees and charges that are payable under the contract. From 1 March 2018, the operator must also include an 'average resident comparison figure' in the disclosure statement. This figure adds the main charges you are likely to incur when living at a particular village and expresses those charges as a single monthly figure. It is designed to help you understand and compare the financial cost of living in different retirement villages. Where a village has a higher average resident comparison figure than another, this indicates the contract offered by that particular village is estimated to cost more, overall. It is important to check the terms of your contract before deciding whether a particular village is right for you as the average resident comparison figure is based on assumptions that may differ from your individual circumstances.

Other compulsory disclosures

A range of additional documents must be available for a prospective resident, or a person on their behalf, to freely inspect, either at the village or the operator’s place of business. They are entitled to take notes and make copies of these documents. A request can also be made for the operator to send documents to the person, in which case they must be provided within 7 days of the request, free of charge.

The documents that must be made available are:

  • a site plan of the village and plans of available units
  • the budgets for the current financial year, the last 3 financial years and the next financial year (if it has been prepared)
  • the annual accounts for the last 3 years
  • the most recent quarterly accounts (if any)
  • examples of all village contracts the resident may be required to sign
  • the trust deed for any trust fund that money paid by residents will be deposited
  • the village rules (if any)
  • the terms of any development consent (if the village is not complete, or if the development consent requires particular services or facilities to be provided for the life of the village)
  • if the village has a capital works fund, statements showing the balance for the last 3 financial years and the most recent quarter
  • the operator’s waiting list policy (if relevant)
  • the company’s constitution and replaceable rules (company title villages only)
  • the management statement, management agreement and minutes of the most recent annual general meeting (community land scheme villages only)
  • the by-laws, management agreement and minutes of the most recent annual general meeting (strata scheme villages only)
  • court or tribunal decisions from last 5 years where the operator and Residents Committee were parties
  • the certificate of insurance for the village
  • policy documents showing the nature of the risk insured and the amount of insurance
  • the most recent safety inspection report
  • a detailed list of all currently available premises in the village
  • any other documents listed in section 12 of the disclosure statement.

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