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Waiting list fees
Some retirement villages charge a fee to join their waiting list.
The village information statement must state whether a waiting list fee is charged,
how much it is and whether it is refundable when you enter the village.
The entry payment
When you enter a retirement village, you will make an up-front payment.
This is called the entry payment.
Your retirement village contract may describe this in a number of different ways
(for example, as an ingoing contribution, an interest-free loan,
a refundable deposit, or the purchase price).
Entry payments are different for owner and non-owner residents:
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Owner residents:
the entry payment is typically the purchase price of your premises.
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Non-owner residents:
the entry payment is the amount you pay to secure your contractual right to occupy.
It is not a property purchase and does not give you title to the land.
All or part of the entry payment may be repayable to you when you leave,
as your exit entitlement. Your contract must specify the method used to calculate
how much you get back.
For information about how exit entitlements are calculated, go to Fees and charges: leaving a retirement village.
What your entry payment covers
Your entry payment secures your right to occupy the premises and to use the facilities
and services specified in your contract.
For non-owner residents, this right is binding on whoever owns the village and cannot
be taken away if the village is sold or changes hands.
For owner residents, you own the title to the land and cannot be made to leave.
Your contract must disclose all fees and charges payable on entry.
All fees and charges must have been disclosed in the village information statement.
Any contract term that charges a fee which was not disclosed in the information statement
is void.
Get independent advice before you commit
The entry payment is the most significant single financial commitment you will make
when entering a retirement village.
Before signing, get advice from:
- a lawyer experienced in retirement village contracts, and
- a financial adviser who can calculate what you would receive back
if you needed to leave at different points in time.
For guidance on what to check and what questions to ask before signing, read this Before signing a retirement village contract.