ByLawyers News and Updates

Retirement Villages – QLD

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By Lawyers are pleased to have published a new guide for Retirement Villages (QLD).

With a separate matter plan, commentary, and precedents, the new guide is available as part of the Conveyancing (QLD) publication.

 

Buying a retirement unit

The Retirement Villages (QLD) guide assists practitioners acting for buyers and residents. It sets out the practical steps of conducting a standard residence contract transaction, and highlights important aspects of the law that must be complied with.

The commentary covers in retail the:

  • relevant considerations when taking instructions and advising on a retirement village transaction, including its potential effects on the age pension and rent assistance from the Commonwealth government;
  • types of residence rights, registered and unregistered, that are available to buyers and residents;
  • types of entry payments that can be required under a residence contract, such as a purchase price or an ingoing contribution;
  • stamp duty, goods and services tax and capital gains tax implications;
  • the standard outgoings of a retirement unit that will be payable;
  • important documents that must be obtained before advising on a residence contract, such as compulsory pre-contractual disclosure documents and financial documents of the scheme;
  • necessary steps in entering and completing a residence contract.

Moving into, living in, and exiting a retirement unit

The commentary further deals with:

  • taking occupation of a unit, recurrent charges and other financial considerations during residence;
  • the obligations of residents and scheme operators after moving into and during residence at the retirement village;
  • ending a residence in a retirement village, including termination, the sale of the accommodation unit, exit fees, exit entitlements and sharing in capital gains or losses;
  • available options to resolve village disputes such as mediation and applying to the Queensland Civil and Administrative Tribunal (QCAT) and appeals processes.

Practical precedents

The guide also contains helpful precedents, including:

  • Retainer Instructions;
  • To Do List;
  • Checklist of Important Considerations – Retirement Village; and
  • Letter to Client Providing Advice on Residence Contract.

For detailed guidance on property transactions and additional relevant precedents, the Retirement Villages – QLD guide is best used in conjunction with the By Lawyers conveyancing and property publications: Purchase of Real Property (QLD) and Leases (QLD).

Retirement villages – VIC

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By Lawyers are pleased to announce the publication of a new guide: Retirement Villages – Victoria.

With a separate matter plan, commentary, and precedents, the new guide is now available as part of Conveyancing – VIC on the By Lawyers website, or as a related guide to conveyancing for LEAP users with the exclusive By Lawyers companion product.

The Retirement Villages – Victoria guide focuses on the types of residency rights available. It assists practitioners acting for residents, prospective residents, and village operators.

The commentary discusses all relevant considerations and necessary steps in entering into a retirement village contract, the obligations of residents and operators, ending a contract, and resolution of village disputes. The commentary includes tribunal cases dealing with disputes.

Other commentary highlights include:

• Registered and non-registered residency rights, paying for the retirement village interest, pension considerations and rent assistance for prospective residents.
• The standard form retirement village contract and mandatory documents, including disclosure statements and village rules.
• Stamp duty, goods and services tax (GST), capital gains tax implications, and outgoings.
• Taking occupation, and charges and financial considerations during residency.
• Ending a residency and termination of retirement village contracts, including departure fees, capital sharing, mediation of disputes and Victoria Civil and Administrative Tribunal (VCAT) procedures, cases and appeals processes.

Helpful new precedents, include:

  • Retainer instructions.
  • To do list.
  • Letter to client providing advice on a retirement village contract.
  • Checklist of important considerations for retirement villages.

Practitioners using the Retirement Villages – Victoria guide will also benefit from the By Lawyers conveyancing and property publications: Purchase of Real Property (VIC) and Leases (VIC).

Retirement village meetings – NSW

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New arrangements for retirement village meetings and voting procedures have been legislated as part of the ongoing process of COVID-19 provisions being made permanent in various areas of law.

The Retirement Villages Act 1999 has been amended to allow operators to hold meetings of residents and annual management meetings using electronic means.

The amendments also expand the existing voting procedures under the Act to allow for ballot voting by residents to be conducted by electronic means in addition to voting in person.

For all retirement village meetings and voting ballots the operator or the convener of the meeting is required to take reasonable steps to ensure each and every resident is able to participate and vote at the meeting using electronic means.

The commentary in the By Lawyers Retirement Villages (NSW) publication has been updated accordingly. It summarises the meeting and voting procedures and contains links to the new legislative provisions.

The By Lawyers Retirement Villages guide is part of the NSW Conveyancing publication. The matter plan contains many helpful precedents, including the standard retirement village contract, general inquiry document, disclosure statement, lease agreement, and the Model Rules. The full commentary assists practitioners to understand, and to advise their clients about, the standard contract, the mandatory documents, and the legislative requirements.

Retirement Villages – NSW

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From 1 July 2019 the Retirement Villages Amendment Act 2018 amends the legislation relating to retirement villages in NSW.

The amendments provide further protections for current and prospective residents. These amendments are intended to increase transparency, improve dispute resolution, provide more certainty around costs and strengthen villages’ safety and emergency planning and procedures.

The reforms include:

  • annual contract ‘check-up’ meetings;
  • enhanced sharing and publication of information;
  • binding Rules of Conduct for Operators of Retirement Villages with which operators must comply. These supplement the provisions in the Act and the regulations, with certain rules to commence 1 January 2020;
  • provisions for mediation of disputes;
  • new requirements for emergency plans, annual evacuation exercises and display of key safety information;
  • new auditor appointment processes.

Yet to commence are provisions requiring village operators to prepare and maintain an asset management plan for items of capital at the village for which the operator is responsible.

See the By Lawyers Retirement Villages (NSW) publication for further details.

Retirement Villages Amendment Act 2018 NSW – Schedule 1 [10], [17]-[20] commenced

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Commencing 11 February 2019, the Retirement Villages Amendment Act 2018 introduces rules of conduct for operators (Schedule 1 [10]), provides for the sharing of village information and allows for mediation of disputes (Schedule 1[17]-[20]).

Yet to commence are provisions implementing village contract information meetings, asset management plans, the annual auditing of village accounts and the provision of quarterly accounts to the Residents Committee. The commentary will be updated when the main provisions commence.

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