There are certain rights, fees and charges that apply when a non-registered interest holder permanently leaves a retirement village. If you live in a retirement village under a rental, loan/licence arrangement, registered lease that has a term of less than 50 years or a residential tenancy agreement where there is no term in your contract excluding the provisions of the retirement village laws, you are a non-registered interest holder.
A departure fee, also known as an exit fee or deferred management fee, is the amount that you have to pay when you permanently leave the village. This fee can be a significant amount so check your village contract for details.
Your departure fee can be paid out of your ingoing contribution. Go to the fees and charges page for more information.
Payment of recurrent charges for general services
You only need to pay recurrent charges for general services for a maximum of 42 days after you permanently leave the village. This is cut short if a new resident moves in during this time. Go to the fees and charges page for more information.
Payment of recurrent charges relating to optional services
Recurrent charges for optional services stop as soon as you permanently vacate the premises.
Optional services may include:
- laundry services,
- food and meal services, such as Meals on Wheels, or
- home cleaning services.
Is interest payable on unpaid recurrent charges?
Yes. If you (or your estate) fail to pay the recurrent charges that are due, the operator can charge interest on the unpaid amount. The law sets the maximum interest rate an operator may charge, which is calculated by reference to the cash interest rate set by the Reserve Bank of Australia.
How much do i have to pay for repairs?
You’re only required to pay for repairs if a condition report was completed when you moved in. If so, you need to return the unit to the same condition that it was as noted in the condition report, less any fair wear and tear.
What is fair wear and tear?
Fair wear and tear is the deterioration that occurs over time with the use of the unit even though the unit receives reasonable care and maintenance. Deterioration could be caused by:
- ordinary use.
You are only responsible for negligent, irresponsible or intentional actions that cause damage to the unit.
Fair wear and tear – you are not liable
Damage – you are liable
Faded curtains or frayed cords
Missing curtains or torn by resident’s cat
Furniture indentations and traffic marks on the carpet
Stains or burn marks on the carpet
Scuffed wooden floors
Badly scratched or gouged wooden floors
Worn kitchen bench top
Burns or cuts in bench top
Loose hinges or handles on doors or windows and worn sliding tracks
Broken glass window caused by resident
Cracks in walls from movement
Holes in walls caused by resident moving shelving or picture hooks
Water stain on carpet from rain through leaking roof or bad plumbing
Water stain on carpet caused by overflowing bath or indoor pot plants
Do I need renovate the unit when I leave?
No. You’re not required to renovate or make any other repairs to your unit other than returning it to the condition it was as noted in the condition report.
What are my rights and obligations if my unit is sold?
When you permanently leave the village, the operator determines the sale price for your unit and all other aspects of the re-sale of your unit. You’re not required to pay any costs involved in selling your unit. These must be paid in full by the operator.
When will I be refunded?
You’ll receive any refundable money within 14 days after your unit is re-sold or re-occupied. If your unit is not re-sold or re-occupied, the operator must pay you your refund after six months from the date you move out unless your contract says otherwise.