21 January 2010

Important changes are being made to the retirement village laws by the Retirement Villages Amendment Act 2008 and Retirement Villages Regulation 2009.

The changes will apply from 1 March 2010.  Until 1 March 2010, the provisions of the existing Retirement Villages Act and Regulation will continue to apply. 

The key changes to the retirement village laws include:

• improved disclosure requirements for prospective residents
• greater protection of residents financial entitlements
• enhanced village safety and emergency practice and procedure
• tighter budget/accounts management and disclosure between operators and residents
• rights for residents to make changes to the property.

Learn more about the reforms to retirement village laws on NSW Fair Trading's website.

What new orders will the CTTT be able to make?

Outlined below are a range of new orders that will be available to residents and operators from 1 March 2010:

For operators

• An order reducing the amount a resident is entitled to receive because of the condition of the capital item which the operator sold to them.
• An order directing the resident to reimburse the operator for the cost of the maintenance or replacement of the item of capital where the operator is of the opinion that the resident has caused the damage.
• An order that distribution of funds in the Capital Works Fund not be distributed as per the resident/s agreed proposal.
• An order that the distribution of funds in the annual accounts not be distributed as per the resident/s agreed proposal.

For residents

• An order permitting the addition, removal, alteration or specified renovations.
• An order relating to the safety of the village if the resident believes in good faith that it is not safe.
• An order requiring the operator to reimburse the resident for costs in carrying out urgent capital maintenance or replacement.
• An order directing the operator to carry out specified maintenance of an item of capital within the time specified in the order or to replace a specified item of capital within the time specified in the order.
• An order requiring the operator to provide information about variation to recurrent charges.

For prospective residents

• An order to provide enquiry document or disclosure statement.
• Refund of 'holding deposit or ingoing contribution'.

For former occupants

• Payment to former occupant if resident occupies residence without entering a contract (including payment of interest at a rate to be determined by the Regulations).
• Payment be made within a specified time under the settling in period arrangement (if that payment is not made with timeframes set out).

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