Retirement Villages Act 1986

to clarify and protect the rights, interests and needs of current, and future residents of retirement villages and residents that are leaving or have left retirement villages; and

to promote consumer protection and fair trading practices in the operation of retirement villages and the supply of retirement village services to residents by—

setting out principles to be given effect to in the administration of the Act and the provision of retirement village services; and

providing for disclosure of information to prospective residents of retirement villages; and

providing for residents to be given information on their financial and other entitlements and obligations to support resident decision making; and

providing clear regulation of the operation of retirement villages; and

providing for participation by residents, who want to do so, in the operation of retirement villages; and

setting out principles to support the provision of safe and secure housing for older Victorians; and

providing processes for resolving disputes between residents, operators and proprietors of retirement villages; and

promoting best practice management standards in the retirement village industry.

In providing retirement village services and in the operation and occupation of retirement villages, proprietors, operators and residents of retirement villages should give effect to the principles set out in subsection (2).

The following principles apply to the provision of retirement village services, and the operation and occupation of retirement villages—

a resident's preference to remain in a retirement village should be respected;

all residents should be treated with dignity and respect;

decisions about a resident's personal life, financial affairs and property, should be made consistently with the will of the resident or, if the resident has appointed a person as an attorney or appointed a person to make decisions on the resident's behalf, that person;

the retirement village should be kept safe and maintained in a reasonable state of repair;

residents should have quiet enjoyment of their premises in the retirement village.

In this Act—

as consideration for the purchase of a unit in the village; or

in consideration of the right being conferred on the person; or

as a donation, on the making of which the right is conferred on the person; or

in consideration of—

acquiring shares in a company that confers the right on the holder of the shares; or

acquiring units in a unit trust that confers the right on the holder of the units; or

under any other prescribed class of legal arrangement.

The definition of entry payment in subsection (1) applies to a payment, whether the payment is made—

by—

the person on whom the right to occupy premises is conferred; or

another person on behalf of the person on whom the right to occupy premises is conferred; and

as—

a lump sum; or

instalments, if the total amount payable is expressed as one fixed amount in the contract.

The definition of entry payment in subsection (1) does not apply to the following payments—

maintenance charges, charges for an optional service, and any other prescribed payments;

rent.

A capital gain or capital loss on the sale of premises or the granting of a new right to occupy premises is to be determined as follows—

calculate the difference between—

the amount that the resident originally paid for the premises or the right to occupy premises; and

the amount that the next resident pays for the same premises or the right to occupy premises;

deduct any costs associated with the sale of the premises or the right to occupy premises, other than any fees or charges payable under the residence contract which creates or gives rise to the right to occupy premises.

For the purposes of this Act—

In this Act, maintenance charge means a recurring charge payable by a resident of a retirement village under a residence contract, management contract or other retirement village contract—

for the provision of goods or services (other than optional services) by the operator of the retirement village; or

to contribute to the costs of managing the retirement village, including—

the costs of employing or engaging persons in relation to the retirement village; and

the costs of maintaining facilities in the retirement village and capital maintenance in the retirement village.

A maintenance charge does not include any amount paid to an owners corporation under Division 1 of Part 3 of the Owners Corporations Act 2006.

In this Act, exit entitlement means—

for a resident who has paid a repayable entry payment, the amount payable to the resident delivering up vacant possession of the premises occupied by the resident in the village, being the repayable entry payment adjusted in accordance with subsection (2); or

for an owner resident who has entered into a contract for the sale of the resident's premises to the proprietor or the operator of the village, the sale price of the resident's premises adjusted in accordance with subsection (3).

For the purpose of subsection (1)(a), adjust the amount as follows—

add to the amount (if so required by a retirement village contract entered into by the resident)—

any other amount payable by the operator to the resident under the retirement village contracts; and

any amount that is prescribed for the purposes of this paragraph;

subtract from the amount (if so required by a retirement village contract entered into by the resident)—

any deferred management fee payable by the vacating resident under the retirement village contracts on vacating the premises; and

any outstanding management charge, fee for optional services or other fees, costs or charges payable by the resident under the retirement village contracts; and

any amount required to be paid by the resident under a retirement village contract in respect of renovation, repairs or restoration of premises; and

any other amount that is prescribed for the purposes of this paragraph.

For the purpose of subsection (1)(b), adjust the amount as follows—

add to the amount (if so required by a retirement village contract entered into by the resident)—

any other amount payable to the resident by the operator under the retirement village contracts; and

any amount that is prescribed for the purposes of this paragraph;

subtract from the amount (if so required by a retirement village contract entered into by the resident)—

any deferred management fee payable by the resident under the retirement village contracts on vacating the premises; and

any outstanding management charge, fee for optional services or other fees, costs or charges payable by the resident under the retirement village contracts; and

any amount required to be payable by the resident under a retirement village contract in respect of renovation, repairs or restoration of premises; and

any estate agent's commission and any costs payable by the resident to the operator or proprietor who acts on behalf of the resident; and

any other amount payable by the resident to the operator or proprietor in respect of the liabilities of the resident as to the sale; and

any other amount that is prescribed for the purposes of this paragraph.

For the purpose of this Act, management dispute means a dispute between a resident of a retirement village and the operator or the proprietor of the village that is about—

the control, management or administration of the retirement village by the operator or the proprietor; or

any action or failure to act by the operator or the proprietor that affects residents' use or enjoyment of the retirement village land; or

the provision of services or a failure to provide services by the operator to residents of the retirement village.

A management dispute includes a dispute between a resident of a retirement village and the operator or the proprietor of the village that is about—

an operator's failure to give permission to a person to live in the village under section 6; or

a decision by the operator to refuse consent to an addition, removal or alteration of a fixture or fitting under section 37C that the resident considers to be unreasonable; or

the works or the cost of works specified in a reinstatement disagreement notice under section 37F; or

whether a non-owner resident complied with section 37D, whether works specified in a reinstatement notice given to the resident under section 37E are required or whether the cost of works specified in such a notice is excessive; or

the completion of a renovation specified in a reinstatement notice given under section 37E; or

the cost or completion of a renovation under an agreement referred to in section 37H(2); or

a failure by the operator to provide a condition report to the resident under section 37J; or

whether a statement in a condition report is inaccurate or incomplete, where there has been a failure to amend the condition report under section 37K; or

a decision at a meeting of residents not to approve by special resolution the payment of a maintenance charge that is greater than the adjusted maintenance charge in circumstances where the operator considers a greater maintenance charge is necessary to fund the maintenance of the retirement village; or

the abatement of maintenance charges under section 38BB; or

a refusal or failure of the operator to reimburse the resident for the cost of capital maintenance or capital replacement of an item of capital under section 38BJ; or

a variation of a service or facility by the operator otherwise than in accordance with Division 1C of Part 6A; or

the compliance by the operator with the requirements set out in Division 3 of Part 6A in relation to emergency plans, safety inspections, key safety information and evacuation exercises; or

the apportionment of capital losses as compared with capital gains; or

any calculation of the amount the resident is entitled to be paid if the resident vacates premises during a settling in period or the time within which such an amount should be paid; or

compliance with Division 4 of Part 4; or

any limitations imposed by the operator or proprietor on the provision of services to a resident by a person other than the operator, proprietor or any employee or contractor of the operator or the proprietor; or

any other compliance with a provision of or failure to comply with a provision of this Act or the regulations that is prescribed.

A management dispute does not include a resident dispute.

In this Act, in relation to a premises occupied by a resident in a retirement village, a reference to giving up or delivering vacant possession of the premises, however expressed, is a reference to the point in time when all the following have occurred—

the resident has ceased to occupy the premises;

all personal property of the resident has been removed from the premises;

any keys to the premises have been returned to the operator or proprietor of the village;

if the resident occupies the premises under a retirement village contract that requires notice to be given before the resident delivers up vacant possession of the premises, the notice has been given and the notice period has elapsed.

Subsection (1) is not intended to limit the common law meaning of delivering up or giving vacant possession of a premises.

In this Act, in relation to a premises occupied by a resident in a retirement village, a reference to permanently vacating the premises, however expressed, is a reference to the point in time at which the resident delivers up vacant possession of the premises.

To the extent stated in an exemption granted under section 7A, the provisions of this Act do not apply to—

an exempt retirement village; or

a retirement village included in a class of exempt retirement villages.