Retirement living contracts are complex and legal advice should be sought
07 March 2018
There are a number of residential options available for those contemplating retirement and many entail complex details that are difficult to comprehend let alone negotiate.
For this reason it is wise for potential residents and their families to seek legal assistance before making decisions and signing any documents, according to Armstrong Lawyers.
Australia’s senior population is on track to grow by five million within 40 years, while life expectancy is also on the way up. This has resulted in increasing demand on traditional retirement living solutions and given rise to other options, such as self-contained luxury villages.
Despite these trends being obvious for some years, Australia’s retirement villages are 93% full, which indicates more accommodation and other options will be needed.
Even then it seems more than likely that increasing numbers of retirees will have to stay in their existing family homes and for this likelihood preparations should begin sooner rather than later.
Leading Australian lawyer Jim Parke says retirement village contracts can be so complex that lawyers should be involved.
“Most of these contracts are complex and confusing, and contain legal terms that the majority of people have trouble understanding.
“People looking to enjoy their retirement, should not be left confused by contracts or taken advantage of by unscrupulous business models.”
In most retirement village contracts residents pay an entry fee and a deferred management fee, which is usually a percentage of the sale price of the unit.
Mr Parke says this arrangement often leaves departing residents without enough funds to purchase another property.
He says there are other new business models being developed that are not as onerous but with so many options and differing contracts, seeking legal advice has never been more important.
Contact an expert lawyer at Armstrong Lawyers for more information or advice on this subject:
Phone: 134 134 or +61 3 9629 5777 for international callers.