What happens when I decide to leave the retirement village?
There are many reasons why you might want to move from your accommodation unit. They include changing health, family and financial circumstances.
You must provide the operator of the village with a written notice of your intention to vacate your accommodation unit. Most villages have a pro-forma document that you complete and return. If not, you can write a simple letter advising of your decision.
You and the operator of the village must agree on the resale price of you accommodation unit. If there is no mutual agreement, the operator must obtain an independent valuation from a suitably qualified valuer. You must also agree on any reinstatement work that may be required to return your accommodation unit to the condition it was in when you moved in. This may include work such as painting, for example. Reinstatement work also works to ensure that the resale process is undertaken as expeditiously as possible and that the best possible resale price is obtained. Naturally, the age of your accommodation unit and the village itself must be taken into consideration when working out what work is required.
Depending on the nature of the contract that you entered into when you first moved to the village, the operator of the village has the first right to re-sell your accommodation unit. The scheme operator must on sell the accommodation unit to a suitable person and one who meets the criteria of a resident – e.g. must be 55 years of age or older and able to live independently. This ensures that the integrity of the village is upheld. The operator has six months to resell your accommodation unit at the mutually agreed price. You have the opportunity to introduce people who you think may be suitable for residency to the operator of the village during this period. If the operator has not sold your accommodation unit within that time period, you may appoint an independent real estate agent to sell your accommodation unit for you. Obviously, the person found by the real estate agent must also meet the criteria of resident.
The operator of the village must provide you with an Estimate of Exit Entitlement, noting proceeds to be expected upon the sale of your accommodation unit and detailing any deductions, such as the Exit Fee.
The Exit Fee (sometimes also referred to the ‘Deferred Management Fee’ or ‘DMF’) is the return to the operator for his initial investment in the village infrastructure. The Exit Fee can be calculated on either the ingoing contribution you paid when you entered the village or the ingoing contribution paid by the new resident, dependant on the contract you entered into. It is usually capped at a percentage of either contribution and can accrue over a period of years, depending on the length of your residency. The calculation of the Exit Fee must be disclosed in the Public Information Document and your Residence Contract.
Once your accommodation unit is resold, you must receive your Exit Entitlement – i.e. your share of the sale proceeds - within 28 days of resale.
You can visit the village of your choice as many times as you like and don’t be afraid to ask as many questions as you feel is necessary to get all of the information that you require – talk with the Village Manager, the salesperson, other staff and most importantly, speak with other residents.
Many villages offer you the opportunity to visit the village on a weekend where a special event is being held or during the week to enjoy dinner with other residents. Take this opportunity and take in the atmosphere and surrounds of the village.
You must provide the operator of the village with a written notice of your intention to vacate your accommodation unit. Most villages have a pro-forma document that you complete and return. If not, you can write a simple letter advising of your decision.
You and the operator of the village must agree on the resale price of you accommodation unit. If there is no mutual agreement, the operator must obtain an independent valuation from a suitably qualified valuer. You must also agree on any reinstatement work that may be required to return your accommodation unit to the condition it was in when you moved in. This may include work such as painting, for example. Reinstatement work also works to ensure that the resale process is undertaken as expeditiously as possible and that the best possible resale price is obtained. Naturally, the age of your accommodation unit and the village itself must be taken into consideration when working out what work is required.
Depending on the nature of the contract that you entered into when you first moved to the village, the operator of the village has the first right to re-sell your accommodation unit. The scheme operator must on sell the accommodation unit to a suitable person and one who meets the criteria of a resident – e.g. must be 55 years of age or older and able to live independently. This ensures that the integrity of the village is upheld. The operator has six months to resell your accommodation unit at the mutually agreed price. You have the opportunity to introduce people who you think may be suitable for residency to the operator of the village during this period. If the operator has not sold your accommodation unit within that time period, you may appoint an independent real estate agent to sell your accommodation unit for you. Obviously, the person found by the real estate agent must also meet the criteria of resident.
The operator of the village must provide you with an Estimate of Exit Entitlement, noting proceeds to be expected upon the sale of your accommodation unit and detailing any deductions, such as the Exit Fee.
The Exit Fee (sometimes also referred to the ‘Deferred Management Fee’ or ‘DMF’) is the return to the operator for his initial investment in the village infrastructure. The Exit Fee can be calculated on either the ingoing contribution you paid when you entered the village or the ingoing contribution paid by the new resident, dependant on the contract you entered into. It is usually capped at a percentage of either contribution and can accrue over a period of years, depending on the length of your residency. The calculation of the Exit Fee must be disclosed in the Public Information Document and your Residence Contract.
Once your accommodation unit is resold, you must receive your Exit Entitlement – i.e. your share of the sale proceeds - within 28 days of resale.
You can visit the village of your choice as many times as you like and don’t be afraid to ask as many questions as you feel is necessary to get all of the information that you require – talk with the Village Manager, the salesperson, other staff and most importantly, speak with other residents.
Many villages offer you the opportunity to visit the village on a weekend where a special event is being held or during the week to enjoy dinner with other residents. Take this opportunity and take in the atmosphere and surrounds of the village.