Retirement Village Contracts
Don't let hidden exit fees or complex leases catch you off guard. We review every clause so you know exactly what you're signing before you move in.
What Do Retirement Village Contracts Really Cost?
Retirement village contracts in Victoria are rarely like standard property sales. They involve complex financial models designed to spread costs over your lifetime. We audit your contract to ensure you know exact figures for all three financial phases:
Ingoing Contribution (The Entry): The lump sum paid to secure your unit, establishing whether you hold a leasehold, licence, or strata title.
Recurrent Charges (The Living): Ongoing weekly or monthly service fees covering village management, maintenance, and amenities—including caps on how much these fees can increase each year.
Deferred Management Fee (The Exit): The percentage of your entry price (or resale price) retained by the operator when you leave—often ranging from 20% to 35% over 5–10 years.
Capital Gains & Reinstatement: Clear rules on whether you share in any capital growth, who pays for unit refurbishments upon departure, and who covers marketing costs.
The 5 Rights We Protect Before You Sign
Moving into a retirement village should offer lifestyle peace of mind—not hidden contractual traps.
Our comprehensive legal review explicitly checks for:
Departure Fee Caps: The lump sum paid to secure your unit, establishing whether you hold a leasehold, licence, or strata title.
Refurbishment Obligations: Ongoing weekly or monthly service fees covering village management, maintenance, and amenities—including caps on how much these fees can increase each year.
Resale Timeframes & Buyback Guarantees: The percentage of your entry price (or resale price) retained by the operator when you leave—often ranging from 20% to 35% over 5–10 years.
Fee Freeze Protections: Clear rules on whether you share in any capital growth, who pays for unit refurbishments upon departure, and who covers marketing costs.
Use & Enjoyment Rules: Clear rules on whether you share in any capital growth, who pays for unit refurbishments upon departure, and who covers marketing costs.
Safeguarding Your Capital for Your Loved Ones
One of the biggest concerns for retirees and their adult children is what happens to their capital when it's time to transition to full residential care or pass wealth on to the Estate.
We ensure your contract includes clear terms that prevent your funds from being locked away indefinitely.
We verify how exit refunds are calculated, ensure statutory timelines for payout are enforced, and coordinate your contract terms with your Will and Power of Attorney for seamless family protection.
By choosing Respect Wills & Estates, you gain a dedicated, compassionate team that advocates for your financial security—so you can make your next move with total confidence.
Why Our Clients Recommend Our Personal Approach
I am glad I came across this wonderful firm and was happy to drive from the other side of Melbourne to see them, it was worth it! Wishing them all the best for the future.
It’s not the easiest when making a Will but the empathy, with factual information and support from Nadya, made it really easy and seamless for me. Thank you!
She was really thorough and her communication was excellent. We really appreciate it.
I truly appreciate their professionalism, expertise, and compassion every step of the way, and I always felt supported. Thank you for everything you have done.
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Your life’s work deserves a secure future.
From protecting your assets and loved ones to navigating the complexities of inheritance, our Wills & Estates specialists provide thoughtful advice across all stages of your Estate journey.
Frequently Asked Questions
Your agreement will usually set out the process for ending your occupancy, the repayment or sale process, and any exit fees or other charges that may apply.
You may leave a retirement village due to a change in circumstances, moving into aged care, relocating or for other personal reasons. Understanding your rights and obligations before leaving can help avoid unexpected costs or delays.
Obtaining legal advice can help you understand the terms of your contract and ensure the exit process is handled correctly.
In many cases, your interest in the retirement village forms part of your Estate and your executor will need to follow the process set out in the agreement.
Your Estate may be responsible for ongoing charges, exit fees or other costs until the property or interest is dealt with according to the contract.
Having a clear Will and appointing appropriate people to manage your affairs can help ensure your retirement village arrangements are handled efficiently and in accordance with your wishes.
Yes. Before signing a retirement village contract in Victoria, it is important to obtain independent legal advice. Retirement village agreements can be complex and may include important terms about entry fees, ongoing charges, exit fees, resale processes and your rights and obligations when leaving the village.
A retirement village contract can have significant financial and Estate planning consequences. A lawyer can help you understand the agreement, explain your obligations and identify any issues before you commit. Obtaining advice early can provide clarity and help you make an informed decision about your retirement living arrangements.
Yes, depending on the terms of the appointment, an Enduring Power of Attorney may allow your appointed attorney to make financial and personal decisions on your behalf, including dealing with matters connected to your retirement village.
This may include communicating with the retirement village operator, managing payments, signing documents or making decisions about your accommodation arrangements if you lose decision-making capacity. It is important that your Power of Attorney is prepared carefully and that the person you appoint understands your wishes and responsibilities.
Moving into a retirement village is an important time to review your Estate plan. Your retirement village contract may significantly affect the value and nature of your assets, which means your Will should accurately reflect your current circumstances and wishes.
You should consider whether your beneficiaries are still appropriate, whether your executor understands your retirement village arrangements, and whether any additional planning is needed to protect your Estate.
A review of your Will, Enduring Power of Attorney and other Estate planning documents can help ensure your wishes are carried out.
Usually no. Most Victorian retirement villages operate under a leasehold or licence model rather than freehold ownership. You are purchasing the legal right to reside in the home for a specific duration, while the operator retains ownership of the land.
It depends entirely on your contract. While village operators cover communal maintenance, many contracts pass internal unit repair costs—and mandatory reinstatement/refurbishment expenses prior to resale—onto you or your Estate.
Under the Victorian Retirement Villages Act, there are statutory caps on how long an operator can continue charging recurring service fees after you permanently vacate. We review your agreement to ensure these exit conditions and financial limits are enforced.
Under Victorian law, prospective residents must be given disclosure documents at least 21 days before signing. Once signed, residents have a mandatory 7-business-day cooling-off period during which they can cancel the contract without penalty.
Exit fees, also known as deferred management fees (DMFs), are amounts that may become payable when you leave a retirement village. They are usually calculated according to the terms of your retirement village contract and may be deducted from the amount returned to you when your interest in the village is sold or your agreement ends.
The way exit fees are calculated varies significantly between retirement villages and contracts. Some agreements may include additional charges relating to refurbishment, maintenance, marketing or other costs. Before entering a retirement village, it is important to understand the financial implications of the exit arrangements and how they may affect your Estate or future plans.