People leave villages for a variety of reasons, whatever the reason, leaving a village is an important time. It can have significant financial implications, and it can be incredibly confusing – all at a time when your focus is really on the move itself (or mourning for a loved one). We know this because at DSL Law, we receive more questions about leaving a retirement village than we do about entering one. It can be easy to fall foul of the legal requirements, or to fail to understand the full extent of your obligations and, your entitlements. This article is designed to help residents understand what the leaving process looks like and to assist them in preparing for it by highlighting some of the key requirements and issues.
The top 10 things to think about when leaving a village
1. Terminating your residence contract – Make sure it is in writing. This is a critical date and many obligations only start when the agreement is properly terminated.
2. Vacating the unit – Hand your keys back as soon as possible.
3. Probate – Find out whether it is needed and get that ball rolling. In some cases, operators will agree to waive this requirement. It is always worth asking.
4. Selling the Unit – Make sure you are up to date on what steps are being taken to actively market your unit. You are entitled to a monthly report if you ask. You are also entitled to know what other units are for sale in the village.
5. Setting the Resale Price – You need to be part of this decision, even if you are not sharing in capital gain. The price can definitely impact on the timing of resale.
6. Reinstatement – Reinstate the unit by fixing damage or accelerated wear and tear.
7. Renovation – See if you have any obligations to pay for renovations.
8. Exit Condition Report – Make sure you get the exit condition report from the Operator within 14 days from the date of termination.
9. Exit Fee – Double check the calculation to make sure you are paying the right amount.
10. Other Payments – Check to see that all charges are correct and reflect your contract.
In summary, there is a lot to think about when leaving your retirement village unit. Although it may seem like a lot, it is really a matter of working methodically through the processes, and making sure you check your contract.
The information above is general advice only and it is based on the Retirement Villages Act in Queensland as it stands today. There can be variations depending on your situation, and what your contract says.
For more information contact DSL Law Pty Ltd
1300 DSL LAW (1300 375 529)