This week’s article is around staying up-to-date with retirement village contracts.
Now that COVID-19 restrictions have been removed from retirement villages in New South Wales, residents should consider arranging a contract check-up interview with their village operator.
Retirement village residents (or a person holding their power of attorney) are entitled to ask their village operator for an update report on their contract information every 12 months. Upon making a written request, the resident is entitled to receive a written report and the opportunity to meet with the operator so that the information in the report can be explained to them. The resident is entitled to have another person or advisor accompany them to the interview.
The report sets out the financial situation that would apply were the resident to leave the village within 30 days of the date the report was compiled. It is an important tool for residents to keep up to date about their financial interest in the residence and to be made aware of the rights and entitlements that apply when leaving the village. It can also allow family members or advisors to understand the financial and other contractual arrangements that are in place.
These things are better sorted out well before the time comes for a resident to actually leave the village, a time when there is likely to be health and emotional turmoil for those concerned.
There is no charge for the report or interview and the request for the report is not an indication that the resident wishes to leave the village.
The Secretary of the NSW Department of Customer Service has issued mandatory Guidelines for operators to follow when they are responding to a contract check-up request. The Guideline can be helpful for residents and their advisors to understand the process. It can be accessed here.
Learn more about the RVRA HERE.
