The Retirement Villages Act 1986 contains 5 principles that apply to the provision of retirement village services and the operation and occupation of retirement villages. The Act requires that all persons performing functions under it give effect to these principles.
The principles are not aspirational guides. They are legal requirements that shape how obligations must be understood and carried out.
The 5 Principles
1. Preference to remain
A resident's preference to remain in the retirement village should be respected.
2. Dignity and respect
All residents should be treated with dignity and respect.
3. Decisions consistent with the resident's will
Decisions about a resident's personal life, financial affairs and property should be made consistently with the will of the resident, or if the resident has appointed an attorney or a person to make decisions on their behalf, that person.
4. Safe and maintained village
The retirement village should be kept safe and maintained in a reasonable state of repair.
5. Quiet enjoyment
Residents should have quiet enjoyment of their premises in the retirement village.
Where the principles apply
The principles are directly relevant to several areas of the administration of a village and to making decisions that impact residents. For example:
Termination: Any action taken to terminate a residence contract must be consistent with the principles, particularly the principle that a resident's preference to remain should be respected. Go to Termination of a Residence Contract.
Village governance and by-laws: By-laws must not unreasonably limit a resident's quiet enjoyment of the village. The principles also inform how you run meetings and how decisions affecting residents are made. Go to Village by-laws.
Maintenance and repairs: The principle that the village should be kept safe and in reasonable repair directly supports the capital maintenance and replacement obligations under the Act. Go to Maintenance and Repairs.
Exemption applications: When assessing an exemption application, the Director of Consumer Affairs Victoria must consider whether the principles will be given effect if the exemption is granted. Go to Exemptions from the Retirement Villages Act.