This week’s question is around the important issue of refurbishment costs.
Question: I am a resident in a retirement village under a contract that provides for any capital gains on resale to be shared between the operator and resident. Who is liable for refurbishment costs when I depart?
- The departing resident?
- The incoming resident?
- The operator?
RVRA answer: Since July 1, 2000, refurbishment costs are the responsibility of the Operator (RV Act s.164). The departing resident, however, is liable for costs for damages over and above normal wear and tear and (usually by contract) the reinstatement of premises to their original condition if alterations or additions have been made by the resident. Alterations or additions usually require approval of the operator, and it is a standard condition that the premises be reinstated to original condition.
There are many variations of how refurbishment expenses can be “compiled” and there needs to be complete transparency on these costs.
If you or a family member have this concern, or another question, remember that the RVRA – while not being able to give legal advice – does provide members with practical support and guidance. We assist with many different issues and find that most are not unique, so you benefit from RVRA experience.
Learn more about the RVRA HERE.
