For older residents who downsize to a retirement village, many questions can arise.
When making what can be a life altering move, it is important that intending residents and their families meet with village operators and ask the following questions: –
Does the village cater for those who are not independent?
When thinking of this, residents and families should consider whether the village caters for loss of independence and how a resident can transition from independent living to an aged care service which may, or may not, be on site. Many village owners who do not cater for loss of independence can ask residents to leave if, for example, a resident falls seriously ill.
What is the cost?
The contents of Retirement Village Contracts are governed by law. They are very different from Contracts of Sale of Land, which purchasers of real estate normally enter. Often there are upfront costs, such as loans to the village owners. Residents should check whether there are also ongoing fees or rental imposts. It is important to obtain accounting and financial advice to assess that the accommodation is right for your financial circumstances and has the least impact upon Centrelink entitlements. The law provides that documents, including disclosures, must be provided to residents at least 21 days before signing. This allows time for the documents and circumstances to be properly assessed by your lawyer and financial advisor.
Type of Residence
Retirement villages come in a range of tenures including rentals, licences, freeholds or a site rental. The terms and conditions of these different types of accommodation dictate the length of time that residents can stay.
Amenities – are they for me?
Residents and families may be differently impressed by the range of amenities provided. Many retirement villages offer facilities such as restaurants, meeting rooms, bars, theatres, libraries, swimming pools, etc. If the resident does not want all of these facilities, should the resident still have to pay? More personal amenities such as car parking, pets and the times that visitors can visit also need to be considered. Further, residents should check to see whether they have any influence over the provision and running of amenities. Most retirement villages have member associations which vote on changes and upgrades to certain amenities.
Staffing levels
It is essential for residents to get a statement in writing as to the staffing levels provided by their accommodation. It is also important to have confidence in staff, and their qualifications should be checked. If there is an emergency, you want to know that your carer is suitably qualified. A lot of retirement villages outsource emergency callouts. Sometimes an emergency callout service is inadequate and obviously this may influence your decision making.
Above all, remember that signing a Retirement Village Contract is not always the same as signing a freehold purchase. Different laws and facilities need to be checked by your professionals. Consult with a lawyer and a financial advisor before you sign.
If we can assist, please ring 9725 0377 (Kilsyth) or 9088 8664 (Rosebud) or email info@alpasslaw.com.au for further information.