What happens when I want to leave the retirement village?
There are many reasons why you might want to move from your accommodation unit. They include changing health, family and financial circumstances.
You must provide the operator of the village with a written notice of your intention to vacate your unit. Most villages have a pro-forma document that you complete and return. If not, you can write a simple letter advising of your decision.
You and the operator of the village must agree on the resale price of your accommodation unit. If there is no mutual agreement, the operator must obtain an independent valuation from a suitably qualified valuer. You must also agree on any reinstatement work that may be required to return your accommodation unit to the condition it was in when you moved in. This may include work such as painting, for example. Reinstatement work also works to ensure that the resale process is undertaken as expeditiously as possible and that the best possible resale price is obtained. Naturally, the age of your accommodation unit and the village itself must be taken into consideration when working out what work is required.
Depending on the nature of the contract that you entered into when you first moved to the village, we will have the first right, for a period of 6 months, to re-sell your unit. We must on-sell the accommodation unit to a suitable person and one who meets the criteria of a resident – e.g. must be 60 years of age or older. This ensures that the integrity of the village is upheld. You have the opportunity to introduce to us people whom you think may be suitable for residency during this period. If we have not sold your unit within 6 months, you may appoint an independent real estate agent to sell your unit for you. Obviously, the person found by the real estate agent must also meet the criteria of a resident.
We must provide you with an Estimate of Exit Entitlement, noting proceeds that may be expected upon the sale of your unit and detailing any deductions, such as the Exit Fee or Departure Fee.
The Exit Fee or Departure Fee (sometimes referred to as a ‘Deferred Management Fee’) is the return to us for our initial investment in the village infrastructure. The Exit Fee or Departure Fee can be calculated on either the ingoing contribution you paid when you entered the village or the ingoing contribution paid by the new resident, dependent on the contract you entered into. It is usually capped at a percentage of either contribution and can accrue over a period of years, depending on the length of your residency. The calculation of the Exit Fee or Departure Fee is disclosed in your residence contract.
Once your accommodation unit is resold, you must receive your Exit Entitlement – i.e. your share of the sale proceeds – within 10-14 days.
When making your decision to move into one of our villages, you can visit the village of your choice as many times as you like. Please do not be afraid to ask as many questions as you feel is necessary to get all of the information that you require – talk with the Village Manager, the salesperson, other staff and most importantly, speak with other residents.
Many of our villages offer you the opportunity to visit the village on a weekend where a special event is being held or during the week to enjoy dinner with other residents. This is a great opportunity to take in the atmosphere and surrounds of the village as well as to meet with residents to get their perspective on life at the village.