Standard Contract For Retirement Villages Comes Into Force

Member for Baulkham Hills David Elliott said that as of today the new streamlined standard contract and disclosure documents for retirement villages must be used when selling property or occupation rights to potential residents.

 Mr Elliott said the new documents will make the move into a village easier and less stressful for retirees and their families.

 “It is now a simpler process to compare villages to choose one that best suits a person’s lifestyle and needs,” Mr Elliott said.

 “The Liberals & Nationals made an election commitment to develop a standard contract for retirement villages and we have delivered.

 “These simple reforms are long overdue and by delivering them in its first term the Government is making a tremendous difference to the many thousands of people who move into retirement villages each year.

 According to Mr Elliott, operators must also give potential residents a detailed disclosure statement at least 14 days before they sign a village contract.

 “The old disclosure statement has also been simplified from 20 pages down to six so that residents can easily find the important information they need before signing their contract.

 “In addition, a new general inquiry document must also be provided if a potential resident, or someone on their behalf, contacts a village.

 “This document gives an overview of the village, its facilities, the type of accommodation available and a broad idea of the costs.

 “Operators risk severe penalties if their contracts are not in the standard form with a potential fine of up to $55,000 and the risk of not being able to enforce the contract.”

 President of the Retirement Village Residents Association, Jan Pritchett, welcomed the introduction of the new standard documents.

 “They will be beneficial for new residents moving into NSW villages, by providing the vital financial information in the initial pages of the contract,” she said.

 The documents and further information are available at www.fairtrading.nsw.gov.au or by calling 13 32 20.