For many older Australians and their families, transitioning into a retirement village is not only a major personal step in life, it can also be a complex legal and financial decision.
Retirement villages can provide independence, security, care and a strong sense of community. But behind these benefits are contracts that are often lengthy, technical and difficult to interpret without specialist advice.
At Aubrey Brown Lawyers, our property law team regularly assists clients in navigating these agreements so they fully understand their rights, obligations and options.
Why does legal advice matter?
Complexity of agreements
Retirement village contracts aren’t ‘one size fits all’. They can involve a variety of structures such as:
- Leasehold or licence agreements – where you pay an entry contribution for the right to occupy but don’t own the property
- Loan/licence models – often involving ‘ingoing contributions’ and deferred management fees (DMFs)
- Strata or community title ownership – where you may actually purchase the property but still pay village service fees.
Each model carries different legal and financial consequences, particularly around exit entitlements, capital gains/losses and ongoing charges.
Understanding your rights under the Retirement Villages Act 1999 (NSW)
This legislation provides protections such as disclosure requirements, cooling-off periods and rules about fee increases but these only help if you know what they mean in practice. Having a lawyer explain these rights ensures you aren’t signing away more than you realise.
Avoiding unfair or one-sided terms
Some agreements contain clauses that strongly favour the operator, for example, high exit fees, restrictions on alterations or limited rights for your estate if you pass away. We can help identify these risks early, negotiate where possible and ensure your family is prepared.
Estate planning considerations
Your retirement village contract may directly impact your estate and succession planning. For example, entry contributions are often refundable only under certain conditions and there may be delays in releasing funds to your beneficiaries. By aligning your retirement village contract with your Will, Power of Attorney and Enduring Guardian documents, you can ensure your wishes are respected and your loved ones are protected.
Financial clarity
It’s important to clearly understand:
- Ingoing costs (entry contributions)
- Ongoing costs (service and maintenance fees)
- Exit costs (deferred management fees and refurbishment charges)
The way these fees are structured can have a huge impact on your finances and your estate in the long term.
Family communication
We often recommend that families attend advice sessions together. This ensures everyone understands the implications of the contract which reduces confusion and helps avoid future disputes.
Our advice: Don’t sign a retirement village contract without a legal review. Even small details can have a big impact years down the track.
At Aubrey Brown Lawyers, our specialist Property and Wills & Estates teams work together to give clients a clear, practical picture before they commit. That way, you can move forward with confidence, knowing both your present and future interests are protected.
If you’re considering a retirement village move for yourself or a loved one, contact our team on 02 4350 3333 for tailored advice.
