Retirement village exit entitlements and recurring charges cap

Submission cover sheet

  • Name of organisation or individual making this submission

    Peggy Anderson

  • Authorised delegate/contact person

    Ken Anderson

  • Position

  • Organisation

Questions on possible options

  1. Is the description of the ‘Sydney Metropolitan Area’ appropriate? If not, why not, and what areas should be included or excluded?

    My name is Ken Anderson and I am writing this submission for and on behalf of, my mother Mrs Peggy Anderson. She used to reside at XXXX XX XXXXX XXXX XXXXXX XXXXXX, XXXX XX XXXX. My mother, whom I am POA for, moved into this village XX years ago, just after my father passed on. At Christmas XXXX my mother had a bad fall in her unit at the front door and badly broke her arm and shattered her elbow. I was advised by the medical staff at the hospital to try and find a nursing home for her as she would be unable to look after herself completely with the lack of use of her left arm. This was when the fun and games started with XXXX at XXXXX. Our original contract with the original owners of the village was vacate, paint, carpet and refurbish her unit ready for sale. The village has had two owners since my mother first moved there, and many different contracts are running at the site today. We vacated the premises and started to negotiate refurbishment on the advice from XXXXs solicitor XXXXX XXXX who told me to negotiate calmly, agree on a price and get out as fast as possible. I asked for a complete costing of the refurbishment and after 5 weeks of waiting a document was supplied. In total $87,000 dollars was needed to do the job. I could have rebuilt the entire unit for that price. I negotiated with them for a reduction in the price because they were double dipping for some of the costs and managed to reduce the bill by $4000. Another 5 weeks went by before we saw a contract after a lengthy meeting with the company’s management (supposedly). I was told by the representative that my mother had moved there for a lifestyle not for a profit. We had to use XXXX’s contractors. To do the job ourselves would have been very long winded having to match paint colours and renovations to the exact colours and nails and specifications. Everything has to be done in XXX’s favour. Costs, prices, selling value even real estate fees etc. Nothing is done in any form for at least 5 weeks after every meeting. XXXX set the price for the reno. Couldn’t get a detailed costing from them nor would they tell us the profit the company was making. New kitchen installed, new bathroom fitttings, new carpet , painting , New wardrobes, new air conditioner, laundry revamp etc. It is only a 2 bedroom unit with common walls to other units. 20 Months later we still have not had a sale, and they are still taking $3XX a month for fees, and my mother is almost broke from having to use all her funds to pay for the nursing home. They took months to do the alterations. XXXX is in control of everything, but is doing nothing. If she passes on, her health is deteriorating , what will happen to her estate. Could XXXX bleed her estate to zero. They don’t really seem to care. They are advertising only on the internet and since Mum’s unit was ready for sale as were 8 others, 7 more have been refurbished for sale as well. In the 20 years she was there, she had had no maintenance on her unit. She wouldn’t ask for anything to be done because she thought she would end up paying big time . The stove was a fire hazard. It was broken . They encourage people go into these places and then bleed them dry. Very few activities, no dining room, no maintenance at this facility. It would be fabulous if I could talk to someone or a committee, and have something done fairly quickly. If the buy back after 12 months comes in, I have another major concern because the owners of the complex will be in total control still again, they will set the resale price.

  2. Are the proposals for appointing a valuer, to determine the value of the property, necessary and appropriate?

  3. Where residents wish to sell their residence on their own terms, under what circumstances should they be able to opt in or opt out of the exit entitlement provision?

  4. What issues should the Tribunal take into account when considering whether or not the operator has done everything in their power to enable the sale of a premises?

  5. Are there any additional circumstances the Tribunal should be able to take into account when considering a hardship application from an operator?

  6. Are there any other factors that could affect the setting of a ‘trigger point’?

  7. Would any of the current provisions in Victoria and South Australia as set out in Appendix A (in the discussion paper), be of benefit to NSW residents of retirement villages?

  8. Can you think of any other benefits or costs of this proposal? What are they?

  9. As with residents with a non-registered interest, should the ‘trigger’ to commence the 42-day period begin when the resident permanently vacates the premises?

  10. Should one or both of the proposals be ‘grandfathered’? If not, please provide your reasons.

  11. Please provide any further comments on the reforms.

At our discretion we may remove parts of submissions because of length, content, appropriateness or confidentiality (privacy) reasons.