Before moving into your retirement village, there are a few things you need to do such as reading and signing your contract. Majority of contracts include terms and words that might be hard to understand for someone who is not exposed to them.
Before reading through a contract, make sure that you understand important terms and keywords. Aside from hiring legal professional which can be quite expensive, there is an alternative. Thanks to the partnership between Property Council of Australia and Russell Kennedy Lawyers, they have created a guide for people who are planning to transition to a retirement village.
The guide includes a glossary of important terms that are commonly used in contracts by retirement villages. Here are some of the terms included:
- Administration Fee. This is the fee charged by the retirement village if the resident decides to resell or move out from their unit. The charge is usually a percentage of the current contribution. The cost is utilized by the retirement village to find a new occupant for your unit and it covers the inspection, repairs, refurbishment, meeting with future residents, cleaning, interview as well as promotion and advertisements.
- Capital Gain. The amount that the new resident will be paying as contribution which is higher than your previous contribution when you first moved in.
- Capital loss. This is the opposite of capital gain and it could mean that your unit has lesser value. The previous contribution is higher than the new contribution.
- Commencement Date. This is the day that the contract starts but it does not mean that it is the day you moved into your unit.
- Common Areas and Facilities. These are facilities used by the resident but is not owned by the specific resident. These include pools, gyms, garden areas, pathways, community centers and roads.
- Eligible Resident. A person that is suitable to live in a unit once the previous contract has ended. The minimum age should be met as well as the capacity of the resident to live independently.
These are just some of the key terms. If you want to understand your contract better, consult with professionals before signing with a contract in retirement villages such as shine retirement villages in sunshine coast.