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Changes to retirement villages legislation

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Housing Legislation (Building Better Futures) Amendment Act 2017

​The Housing Legislation (Building Better Futures) Amendment Act 2017 was passed by Parliament on 25 October 2017 and assented to on 10 November 2017.

This legislation contains amendments to the Retirement Villages Act 1999.

These amendments:

  • strengthen the regulatory framework for retirement villages
  • improve consumer protection for prospective and current residents of retirement villages.

We’re currently working with the community and industry to finalise these changes. See the timeline (PDF, 301KB) or details of consultation and implementation.

What has changed?

Changes to the Retirement Village Act and the introduction of the Retirement Villages Regulation 2018:

  • improve pre-contractual disclosure processes for prospective residents

ensure residents have more information about their village operations.​​​​​​​​​​​

Pre-contractual disclosure

  • 2-stage precontractual disclosure process: A new and improved 2-stage, 21-day precontractual disclosure process before the residence contract is signed. The prospective resident can reduce this time frame if they get legal advice and sign a waiver.
  • Village comparison document for new and prospective residents: General information about the retirement village accommodation, facilities and services, including the general costs of moving into, living in and leaving the retirement village. This enables residents to more easily compare retirement villages (to replace public information documents).
  • Prospective costs documents for new and prospective residents: Refers to a specific unit in the retirement village, with details about costs of entering a village, ongoing costs, costs of leaving and an estimated exit entitlement a resident receives on leaving (to replace public information documents).

Reinstatement and renovation of a unit

  • Reinstatement of accommodation unit: New requirements for resident to reinstate units to condition it was in when they moved in, minus fair wear and tear. Also, new entry and exit condition inspections and reports to provide evidence of unit condition. Entry and exit condition inspections and reports apply to new retirement village residents only.
  • Renovation work by scheme operator: Scheme operator to pay for any renovation work beyond reinstatement, unless the resident shares in the capital gain or agrees otherwise.
  • Retirement village dispute: Disputes about reinstatement and renovation can proceed straight to QCAT to resolve disputes quicker and facilitate quick resale.

Access to documents

Access to operational documents by residents and prospective residents: Residents and prospective residents to have better access to prescribed operational documents to make village operations more transparent and provide valuable precontractual information.

Reselling and valuing a unit

  • Update to agreed resale value every 3 months: Improves the processes for the operator and former resident to agree on a unit’s resale value.
  • Submissions to valuer and matters for valuer to consider: The requirements for a register valuer to provide a unit valuation, including considering resident and operator submissions to the valuer.

Public safety equipment

Regulation-making power: A regulation-making power to provide for public safety equipment in retirement villages e.g. defibrillators. (A regulation to provide for public safety equipment will be considered as part of Stage 2 implementation.)

Obligations of operators

Operators must now comply with the new legislation.

We have published the documents and forms that you need, including a:

  • village comparison document
  • prospective costs document
  • pre-contractual disclosure waiver
  • entry condition report
  • exit condition report
  • registration application form.

By now, you must have a customised village comparison document and prospective costs document to replace the previous public information document.

Health and Other Legislation Amendment Act 2019

The Health and Other Legislation Amendment Act 2019 was passed by the Queensland Parliament on 3 April 2019.

This legislation contains amendments to the Retirement Villages Act 1999, which commenced on 11 April 2019.

These amendments:

  • improve consumer protections for retirement village residents who hold a freehold interest of their unit
  • give residents in freehold units certainty about the maximum time they’ll have to wait to receive their funds after they decide to permanently leave a village
  • require the village operator to purchase the unsold freehold unit, within a specified time frame, by entering into a contract with the former resident.

What has changed?

The village operator must:

  • enter into a contract to purchase the former resident’s freehold property in certain conditions
  • complete the purchase within a particular time frame.

The Retirement Villages Act states how a resident can terminate their right to reside. This includes giving one month’s written notice to the village operator, by their death.

If the resident doesn’t terminate their right to reside in a freehold unit, the village operator isn’t required to purchase the unit.

The mandatory purchase provisions also apply to units where a former resident terminated their right to reside before the provisions started, but their freehold interest remains unsold. The village operator must complete the purchase of these units by either of these dates at the latest:

  • 23 May 2019—which is 6 weeks after proclamation of the Health and Other Legislation Amendment Act
  • the date that’s 18 months after the termination date.

An operator may apply to the Queensland Civil and Administrative Tribunal for an extension of time to purchase the unit if the purchase will cause them financial hardship.

They may continue to market the unit for sale to an incoming resident during any approved extension.

Read more exit entitlement information for residents and for operators.

Next steps

April to June 2019

We will introduce more changes to the legislation to ensure that retirement village residents are aware of any changes in village operations, such as a change of operator or village redevelopment.

We will also introduce new standards for retirement village contracts.

November 2019

Final amendments to the Retirement Villages Act are expected to be proclaimed by November 2019. These changes will establish the standard requirements for financial reports and budgets for retirement villages.

Advocacy and support for residents

Five organisations have been funded to conduct advocacy and support to help residents of retirement villages, residential (manufactured home) parks and residential services:

  • understand their rights
  • represent their interests to village operators, service providers, park owners and government. See the Right Where You Live website for more details.

Get more information

Contact us for more information.

Last updated 16 May 2019    Creative Commons Attribution 4.0 International (CC BY 4.0)

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