Member for Davidson, Jonathan O’Dea has welcomed the announcement by Fair Trading Minister Anthony Roberts of a new standard contract for retirement villages.
“The NSW Liberals and Nationals Government made an election commitment to develop a standard contract for retirement villages to use when selling property or occupation rights to consumers in New South Wales,” Mr O’Dea said.
“Concerns had been raised by residents about the complexity and length of contracts used in the retirement village sector.”
Mr O’Dea said the new standard contract will enable prospective residents to easily compare costs and conditions between retirement villages and make informed choices.
“From 1 October 2013, village operators will be required to use the standard contract for contracts entered into on or after that date”, he said.
The plain English standard contract covers matters such as:
- The type of residence right the resident is acquiring in the village, i.e. ownership in a strata or community scheme, leasehold arrangements or other forms of occupancy;
- All costs the resident must pay to enter, live in and leave the village;
- If and how any capital gains are to be shared;
- The settling-in period;
- Services and facilities;
- Alterations and additions; and
- Repairs and maintenance
Mr O’Dea said the Government is also improving the pre-contract disclosure requirements. Two documents will be compulsory from 1 October 2013: a general inquiry document and a disclosure statement. The general inquiry document provides basic information for people who just want a broad understanding of the facilities and the costs of the villages they are considering.
Once a prospective resident has expressed interest in a particular unit, they will be given a disclosure statement, which contains key information about the unit. This statement must be provided at least 14 days before a contract is due to be signed.
“This means that prospective residents will receive the right information at the right time, alleviating some of the stress faced in making this life-changing decision,” Mr O’Dea said.
The documents and further information are available on the NSW Fair Trading website, (www.fairtrading.nsw.gov.au) or by calling 13 32 20.
