Village contracts

There must be a written contract between the village operator and each resident before they move in. Exceptions include:

  • moving in with an existing resident or
  • signing a residential tenancy agreement under the residential tenancy laws.

The village contract can be a residence or a service contract, or a combination of the two. You must provide the prospective resident with a copy of the contract at least 14 days before signing it. You can also ask the resident to pay a maximum of $50 to prepare the contract.

Standard village contract

The standard contract sets out residents’ and operators’ rights and obligations in a clear, standardised format. It covers residence rights,, entry costs, the settling-in period, recurrent charges, services and facilities, alterations and additions, repairs and maintenance, sharing of capital gains, and departure fees.

Operators can include additional terms at the back of the contract. The additional terms cannot be inconsistent with the standard terms or the retirement village laws or any other law.

The following documents must be added to the contract:

  • a copy of the disclosure statement that was given to the resident
  • the condition report (if one is required to be prepared)
  • a list of the village services and facilities, and
  • the village rules (if any).

Exceptions

A standard contract form does not have to be used for:

  • a separate contract that is just for a garage or storage space
  • a sale of land contract where a resident buys a strata or community scheme unit, or an agreement to buy company title shares – however, these residents must sign a service contract in the standard form.

Standard contract template forms

The following template forms will help you prepare a village contract.

General standard form for all interest holders

This is the standard prescribed form from the Regulation which can be adapted for any type of village by crossing out or deleting the alternative terms where appropriate.

Non-registered interest holders

These forms should be used when the resident is a non-registered interest holder. This includes loan/licence arrangements and leases where the resident has no entitlement to capital gains and/or the term is less than 50 years.

Registered interest holders

The following forms should be used when the resident is a registered interest holder.

Disclaimer

This is not legal advice. Although every care has been taken in preparing the template forms, Fair Trading cannot guarantee that documents produced using them will fully comply with the law. Fair Trading recommends that operators have their documents prepared or checked by a qualified legal expert.

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