When a Resident leaves a Retirement Village, the Resident must give a termination notice to the Scheme Operator. Before a Resident can resell their Right to Reside, the Unit must be reinstated to a “marketable condition” and an agreement reached with the Operator on the resale value of the Unit.
If the resident has a Freehold interest, the Resident must pay for all labour and materials in relation to the reinstatement.
If the Resident’s interest is Leasehold or by Licence, you may have to pay for the work relating to the reinstatement in accordance with the terms of the Lease or Licence.
It is important before entering in a Retirement Village, to discuss with the Scheme Operator the likely reinstatement costs should you chose to leave the residence.
You must pay for any accelerated wear to the interior as well as any deliberate damage caused by you.
For any Contract signed on or after 15 March 2006, the Resident and Operator must share the costs of reinstating the premises in the same proportion as they share Capital Gain from the Unit’s sale. Contracts signed before 15 March 2006 may state who must pay reinstatement costs.
Reinstatement costs are in addition to any Exit Fee calculation in accordance with the terms of the Residents Contract.
Most Contracts provide that the Village Operator should obtain a quote for the reinstatement work and that you may also obtain a quote and give it to the Village Operator. If no agreement can be reached between the Resident and the Village Operator in relation to the cost of reinstatement work to bring the Unit to a marketable condition, there is a dispute resolution process set out in the Retirement Villages Act 1999 (Qld).
ROD GUNN