Changes to the Queensland Retirement Villages Act
The next round of changes to the Retirement Villages Act 1999 (Qld) will take effect on 1 February 2019 and will impact every Queensland retirement village.
Changes have already been enacted including:
requiring retirement village operators to pay a former resident’s exit entitlement no later than 18 months after the termination date; and
introducing new behavioural standards for village operators and residents requiring a scheme operator to provide a complete response to relevant correspondence within 21 days.
The further amendments will commence on 1 February 2019, including:
Residence contract and disclosure documentation:
Operators will be required to provide residents with:
the new Village Comparison Document and Prospective Costs Document which will replace the Public Information Document (PID);
the relevant documents at least 21 days before entering into a residence contract, or obtain a waiver notice signed by the prospective resident and a Queensland lawyer;
an Entry Condition Report and Exit Condition Report in the approved form; and
a residence contract which contains the required additional information.
Scheme operators must maintain a website for their village(s).
Reinstatement and renovation work
A new definition of “reinstatement work” for new residence contracts requiring former residents to reinstate their unit to the same condition as it was in upon entry, excluding fair wear and tear, agreed renovations and other changes. If this is not done, the scheme operator can carry out the reinstatement work and claim the cost from the former resident.
A new concept of “renovation work” (for which the operator is responsible) will be introduced for new residence contracts. The parties must bear the cost of renovation work in the same proportion they share any capital gain on resale of the right to reside, and agree on the timeframe for the renovation work before work is commenced. The operator must then ensure that the renovation work is completed by the agreed date.
WHAT OPERATORS NEED TO DO
Operators have until 1 February 2019 to comply with the new legislation.
The documents and forms that you will need, include a:
village comparison document;
prospective costs document;
pre-contractual disclosure waiver;
entry condition report;
exit condition report; and
registration application form.
You must prepare a customised village comparison document and prospective costs document to replace your current public information document by 1 February 2019.
We can assist you in relation to your documents. If you wish to discuss this article or require our assistance, please contact our property team.