Retirement Villages
There are two main types of retirement village schemes. The first is where residents buy a unit at current market value and receive a certificate of title. The second is based on a lease or licence arrangement, where residents pay the equivalent of the current market value of a unit to the village developer in return for a lease on the unit, usually for life.
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The amount residents or their estates receive on departure from the retirement village can vary. Some villages allow the whole of the capital gain on resale, others allow a share of the capital gain, and others allow no capital gain at all.
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Would-be residents must be provided with documentation about the village 21 days before signing a contract. The documentation must include:
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The name, location and ownership of the village
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The village by-laws
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A residence and management contract
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A checklist of important questions to consider before entering a village
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Once a contract has been signed a three-day cooling-off period is available. You should seek legal advice about the terms and conditions of the residence contract before signing.
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