Retirement Villages are becoming increasingly popular places to live for those of retirement age. If you ever consider moving into a retirement village, the Retirement Villages Act requires that you be given a Public Information Document (PID) from the operator of the village which you intend to buy in. The document is often very large and will contain a lot of information about the village and how it operates. The law states that the scheme operator must provide a PID to you before you enter into a residence contract.
The relevant legislation provides that a PID must contain the following information as a minimum:
accommodation types
the costs of units
village facilities
village land
residents´ rights and obligations
fees and charges
mandatory funds
the resale process and exit entitlement
exit fees
financial information
dispute resolution process.
The PID is therefore a very important document and was developed by the Government to protect consumers and to allow consumers to compare villages. The scheme operator must ensure that the PID is up to date and that it does not contain any misleading statements. The PID should reflect the agreement that will be entered into between you and the scheme operator.
The PID documents can sometimes be very confusing and lengthy. It is highly recommended that you get legal advice before entering into an agreement with the village. When you seek legal advice, the lawyer will want to read a copy of the PID. It is important to make sure when the scheme operator gives you the PID that you deliver it to the lawyer for review. The succession law division of Smith & Stanton is very experienced in dealing with various retirement villages. If you require assistance please contact us.
