CAPS ON RECURRENT CHARGES

The Retirement Villages Act amendments which came into force on 1 April 2014 contained a new provision:

Residents in non-owner villages (that is residents who have a lease or licence) now have a cap on the length of time that they must continue paying recurrent charges (monthly fees) after they have permanently vacated the village.

For residents whose contracts were dated before 1 April 2014 only continue paying their recurrent charges for 6 months after they have permanently vacated.

For residents whose contracts are dated 1 April 2014 or later, the recurrent charges are payable for only 3 months after they have permanently vacated.

Note that to receive these new benefits you must have resided in a non-owner village – these provisions do NOT apply to residents in strata title or purple title villages,

The Act prescribes the exact steps that must be taken to prove that you have permanently vacated – you must comply with all four of these steps:

(a) if required by the residence contract, the administering body has been given notice of the former resident’s intention to vacate the residential premises; and
(b) the goods and belongings of the former resident have been removed from the residential premises; and
(c) the former resident has ceased to reside in the residential premises; and
(d) the right to exclusively occupy the residential premises has been given up by the former resident (or, if the former resident is deceased, by the estate of the former resident) by returning the keys to the residential premises to the administering body.” (Retirement Villages Act section 23 (1))

For full information on the process and to obtain a worksheet, download our Information Paper by clicking here.