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Retirement village agreements
A retirement village contract is not a normal property purchase. What you pay to get in is rarely the number that matters - the one that matters is what you or your estate gets back when you leave, and that is decided by clauses most people read once, at the end of a long day, after they have already fallen in love with the unit.
Enquiring is free. We confirm any consultation fee before you come in.
Key facts
- In NSW you must be given a copy of the proposed contract at least 14 days before you sign it. That period exists so the contract can be read by someone independent - use it.
- A cooling-off period applies after signing, and it ends immediately if you move in during it.
- Every resident gets a 90-day settling-in period after moving in.
- The departure fee - often called the deferred management fee or exit fee - is usually the single largest number in the contract, and it is calculated differently in almost every village.
What we actually look for
We read the village contract and the disclosure statement together and tell you, in plain English, what leaving costs. That means the departure or deferred management fee and how it accrues, whether you share in any capital gain (or wear any capital loss), how long you keep paying recurrent charges after you move out, who pays for reinstating the unit, and what happens if you need to move into aged care sooner than planned. Then we tell you which of those are negotiable and which are not.
The 14 days are the whole point
NSW Fair Trading is clear that you must be given the proposed contract at least 14 days before you sign. Most people spend that fortnight arranging removalists. It is the only part of the process designed for you to get advice, and it is free to use. If you are already inside a cooling-off period or a settling-in period, ring us the same day - both are short, and one of them ends the moment you move in.
For families as well as residents
Often it is an adult child who calls, because the village contract will quietly determine a large part of what is left in the estate. We are happy to act for the person moving in, with their family in the room, and to explain how the contract interacts with their will, their power of attorney and their enduring guardianship appointment - documents we can prepare at the same time.
Also see: Conveyancing - selling the home you are leaving · Wills & estate planning · Powers of attorney & enduring guardianship
How we can help
- Village contract and disclosure statement reviewed before you sign
- Departure fee, deferred management fee and exit-cost calculations explained
- Capital gain and capital loss sharing clauses
- Recurrent charges after you leave, and reinstatement obligations
- Advice inside a cooling-off or settling-in period
- Acting for the estate when a resident dies or moves into aged care
- Wills, powers of attorney and enduring guardianship prepared alongside
Common questions
How long do I have to review a retirement village contract in NSW?
You must be given a copy of the proposed contract at least 14 days before you sign it. NSW Fair Trading treats that as a minimum, not a target - and a village cannot shorten it. Bring us the contract and the disclosure statement as soon as you receive them and there is comfortably enough time.
What is a deferred management fee, and how much is it?
It is the fee the operator takes when you leave, usually calculated as a percentage of either your ingoing contribution or the resale price, accruing for each year you live there and capping after a set number of years. There is no standard figure - it varies from village to village, which is exactly why the contract has to be read rather than assumed. It is normally the largest single cost in the agreement.
Is there a cooling-off period for a retirement village contract?
Yes, a cooling-off period applies after you sign. Importantly, it ends immediately if you move into the village during it - so moving in early can cost you the right to change your mind. If you are inside one now, call us today rather than at the end of the week.
What is the 90-day settling-in period?
Every resident in a NSW retirement village is entitled to a 90-day settling-in period after moving in. If it is not right and you leave within it, the terms on which you can go are more favourable than they would be later. It is a genuine safety net, but it is only 90 days.
Do you also act on the sale of the home I am moving out of?
Yes. Most people entering a village are selling a house at the same time, and it is simpler to have one firm holding both sides of the timing. There is no consultation fee for the conveyancing side of that.
This is general information, not legal advice. Every situation is different - for advice on your matter, request an initial consultation. Enquiring is free, and we confirm any consultation fee for your matter before you come in.
Sources: NSW Government - Choosing and moving into a retirement village · Retirement Villages Act 1999 (NSW)
Request your initial consultation.
Sit down with a solicitor, tell your story, and leave knowing where you stand. Enquiring is free, there is no consultation fee for wills, conveyancing, powers of attorney, deceased estates or contested estates, and for other matters an initial consultation is $275 - full costs explained before any work begins.