New Sales Contract FAQs
RetireAustralia’s new contract has been developed in response to feedback from seniors and their family members about the complexity of retirement village contracts.
Our new contract offers a transparent and simplified financial model that provides clarity, certainty and confidence for residents and their family members when entering into a retirement village.
RetireAustralia believes this will be beneficial for the retirement and aged care industry and could have a fundamental impact on future legislative reviews.
Buying into a retirement village is very different from buying an ordinary home and it’s important to consider your motivations before making such a big decision.
After decades spent in the property market, many of our residents seek a secure financial arrangement where they don’t have to worry about the risk of capital loss or about preparing their home for sale when they leave. Our residents also have access to a range of services and amenities that are exclusive to the retirement village offer.
To account for these differences, our contract includes unique elements, such as the exit/departure fee and no participation in capital loss/gain.
If you change your mind within the 21-day cooling off period, RetireAustralia will return your deposit in full.
If you terminate your agreement within the 90-day settling in period, RetireAustralia will refund your ingoing contribution within 30 days and reimburse you for any village fees that you have paid up until vacant possession. In lieu of this, you will pay a weekly rental amount (based on market value), any applicable legal fees and charges for any personal services accrued during the time of occupancy.
In villages where our new contract is available, you will not pay stamp duty on your unit.
Under our new contract, your village fees will be set upon entry and will never increase. For example, if your village fees are $480 per month when you finalise settlement on your unit, you will pay $480 per month for the entire time you live in the unit.
While your village fees are higher than that of other residents when you first enter the village, this will not always be the case. As the amount other residents pay gradually increases to meet the village’s changing budgets, your fees will stay fixed for as long as you’re living in the village.
Your exit/departure fee is calculated over your first three years in the village and is based on the price you pay for your unit.
1 year (10%) + 2 years (12%) + 3 years (13%) = 35%
After you have lived in the village for more than three years, your exit/departure fee will be capped at 35% and will not increase, no matter how long you stay in the village.
The exit/departure fee is calculated over your first three years in the village to prevent residents who wish to stay in the village for a longer period of time from being disadvantaged.
On average, residents stay in our villages for seven years, making our three-year capped exit/departure fee a more beneficial option than an exit/departure fee that continues to accrue throughout the duration of your time in the village.
Your exit/departure fee will be based on the number of full years you have lived in the village, in addition to a monthly pro rata amount.
For example: if you have lived in the village for one year and three months, you will pay 10% of your entry price, along with a pro rata fee for the three months.
Whichever date comes first:
- The day when the sale of your unit is settled
- 6 months (NSW) or 12 months (QLD & SA) from the date your lease is terminated.
To ensure that the village’s annual budget is met, you will be required to pay your village fees while your unit is on the market. However, so that you can focus on your next step, we will reduce or take over payment of your fees after a set period of time has elapsed.
Once you’ve vacated the unit, RetireAustralia will refurbish or reinstate it at no cost to you, except in circumstances of exceptional wear and tear, damage or costs associated with the removal of any alterations and additions that you have made to your unit.
To ensure that all of our units meet our high standards of quality and presentation, RetireAustralia coordinates all reinstatement/refurbishment work using our trusted builders and tradespeople.
In the unlikely event that our expert sales and marketing team has not sold your unit within 6 months, you will be permitted to appoint your own external selling agent.
You will be responsible to pay for all their costs in addition to any costs outlined in your contract with RetireAustralia. You will also be responsible to pay RetireAustralia for any capital loss if you and your external agent proceed with a resale price that we are not prepared to accept or is below the determined resale value.
Under our new contract, you can always calculate the amount of money you will receive after you leave. This financial security is made possible by removing uncertainty and risk, meaning that you will not be affected by any capital loss or gain resulting from the sale of your unit.