Retirement villages are becoming popular across Australia, offering an active lifestyle. If you’re considering entering into an agreement to live in a retirement community, it’s important to note that it’s not a simple property transaction. Entering a retirement village agreement is a complex legal transaction and requires attention. Before you sign a retirement village agreement, you should keep a few factors in mind.
Costs
Before signing any retirement village agreement, it’s crucial to familiarize yourself with the costs involved. In addition to the lump sum ongoing payments, there are also other expenses, such as:
- General service charges
- Personal service charges
- Maintenance reserve fund contributions
- Site fees
- Lease registration fees
Understanding the financial costs allows you to budget accordingly and avoid surprises.
Exiting a retirement village agreement
While many envision spending their remaining years in a retirement community, statistics show that the average stay is around 8-9 years. Therefore, it’s essential to consider the cost of exiting the village before signing any agreements.
Sadly, without proper legal guidance, people often face unexpected fees when leaving, which can amount to up to 35% of their initial investment! Understand the exit costs involved to protect yourself. Should your health or family situation change, don’t get caught paying a considerable sum to move or relocate.
Plan for your future
Retirement villages and aged care living arrangements can impact your Estate. Often people sell their homes to fund their entry into a retirement community. Therefore, when planning to live in a retirement home, you should also review your Estate plan to consider the fees and potential sale of your retirement property.
Legal advice for retirement village agreements
Seeking legal guidance on your retirement village agreement will help you protect your interests as you embark on a new chapter in your life.
Investing in legal advice on your retirement village agreement offers a comprehensive understanding of the agreement and supporting documents’ terms and conditions.
Our experienced lawyers will explain your rights, obligations and applicable fees, allowing you and your family to make informed decisions.
Contact WJM to navigate the legal complexities of living in a retirement community. Book your appointment by calling (03) 5222 2077 or emailing info@wjmylawyers.com.au.
