Intending residents
If you're considering living in a retirement village, you need to be aware that buying into a retirement village is different from buying a house. It's complex and villages vary in their accommodation, support and care, legal and financial structures, philosophy and management. There are also costs on entry, while living at the village and when you leave - these can be substantial.
This page has some tips for your search and information about your rights under the Retirement Villages Act. For detailed information about choosing a retirement village (including useful checklists and directories of villages) visit the retirement villages section on our Sorted website.
Tips for your search
Take your time:
- Think ahead to what you might need in the future - will you be able to continue to live there as your needs change?
- Make a list of the things that are most important to you for the lifestyle you'd like
- Visit different villages and find out what they offer
- Talk to the residents
- Read the information and documents for the village
- Find out the total costs - on entry, ongoing, moving within the village and when you leave. Will you share in any capital gain when you leave?
- Get independent financial advice from a financial planner or accountant with experience in retirement villages
- Get independent legal advice from a lawyer with experience in retirement villages
- Involve your family or friends in your decision
Rights under the Act
The Act gives intending residents many rights. The Guide to the Act has more detail about these rights. In general, they focus on:
- The operator giving intending residents copies of:
- the disclosure statement
- the occupation right agreement
- the Code of Residents' Rights http://www.retirement.org.nz/retirement-villages-code-of-practice.html">Code of Practice
- other important documents - such as the financial statements, village rules, any management agreement and the deed of supervision between them and the village statutory supervisor
- The disclosure statement and occupation right agreement containing the required information in a clear and unambiguous way so that intending residents can make an informed choice
- Intending residents having an independent lawyer explain the occupation right agreement to them, who witnesses the intending resident signing the agreement
- New residents having 15 working days in which to cancel the agreement, once they've signed it.
An 'intending resident' is someone who, in the last three months, has:
- Given a retirement village operator or agent their details, and either
- talked with a retirement village operator or agent about entering into an occupation right agreement, or
- indicated to a retirement village operator or agent that they're interested in becoming a resident.
Page last updated: May 2007