Things to Understand Before Signing Your Retirement Village Agreement
Choosing a retirement village is a major decision, and there are a couple of things you should be aware of during your search to make sure that you end up in the best place for you.
The Retirement Villages Act
The Retirement Villages Act of 2003 sets out the things a retirement village operator must do as well as the rights of any person living in or thinking about living in a retirement village.
Residents Rights:
– When: before they move in, while they are living in a retirement village, and after they leave
– What: understanding the financial implications, their obligations as residents, and making sure they get the things that the retirement village has promised them and are legally entitled to
It is important to have an independent legal professional go through any agreement you are considering to make sure that you’re not being taken advantage of.
There is other relevant legislation like the Code of Practice 2008 which sets out the minimum requirements for retirement village operators.
Your Occupation Rights Agreement NZ
What Is an Occupation Rights Agreement?
An Occupation Rights Agreement (NZ) is the contract between you and a retirement village that sets out your occupational rights to a unit inside that retirement village.
It can cover:
– Your right to own a pet
– Whether family and friends can stay over night
– Your car park (and whether you can have a car)
– In-house cooking restrictions
– Service provision and limitations
– Codes of conduct
– Financial matters
So…if an Occupation Rights Agreement is your right to occupy a house – what is a License to Occupy in a retirement village?
A License to Occupy in a retirement village is another way of saying an Occupation Rights Agreement. Some people call it a Licence to Occupy, an Occupation Licence, Occupational Rights, or the acronym ORA.
Pros And Cons of Retirement Villages NZ
What Are the Advantages of Living In A Retirement Village?
Depending on the village you choose there could be a few different ones, but most retirement villages can offer:
– Connection to community: plenty of company close by
– Independent living: support when you need it without giving up independence
– Low maintenance lifestyle: minimise worry about home maintenance
– Security and peace of mind: a community of people like you with a support team nearby
– Active lifestyle: opportunities to stay active through exercise or socializing
– Access: health services and healthcare professionals
What are Disadvantages of Living In A Retirement Village?
– Contracts: dealing with legal nitty gritty can be managed with good legal advice from professionals
– Fees: it can be frustrating to pay fees, even if they are comparable to your household bills
– Downsizing: moving from a large house to a unit can be an emotional process
– Having to move: moving house can be hard, even when you’re excited for your new home.
What Happens If a Retirement Village Goes Bust?
The elements of what happens if it goes bust depend on the village, the agreement, and the type of ‘going bust’ you’re referring to.
This is a very serious and complex matter – your ability to have somewhere to live can depend on it, you could lose your home, and in some cases your deposit can also be at stake.
The best thing you can do is to get independent legal advice before signing an agreement so that you can understand what can happen to you and your home if the retirement village you’re considering goes bankrupt.