Changes to the regulations under the Retirement Villages Act 1986 will come into operation on 1 July 2014 relating to contracts and disclosure requirements for Retirement Villages in Victoria.
The changes mark a significant departure from the previous disclosure and contractual requirements for Victorian retirement villages, including the requirement for a standard form contract. Other changes are the requirement for owners of retirement villages to:
- Provide a 'factsheet' in a prescribed form with general information about the retirement village on first contact with proposed new residents;
- Make documents available for inspection by proposed new residents relating to the retirement village such as plans, annual general meeting reports and statements;
- Provide a significantly more detailed disclosure statement to proposed new residents, again in the prescribed form; and
- Use standard form contracts (for both content and layout), with certain mandatory terms (but can also include additional or special conditions subject to compliance with the Retirement Villages Act 2006).
Owners of retirement villages should familiarise and prepare themselves for the introduction of the disclosure and contract requirements.
Potential new residents should obtain legal advice when considering purchasing a retirement village unit, particularly with the introduction of the new disclosure and contract requirements.