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  • 06Oct

    Retirement Villages Regulation 2017 (NSW)

    On 1 September 2017 the Retirement Villages Regulation 2009 (NSW) (2009 Regulation) was replaced by the Retirement Villages Regulation 2017 (NSW) (New Regulation).

    The New Regulation retains the majority of existing provisions under the 2009 Regulation, while making amendments to improve the protection for current and future residents.

    The main changes under the New Regulation are summarised as follows:

    1. Clarifying that re-painting of external surfaces once every 10 years is capital maintenance and maintenance of other items to bring such items back to a standard of the original condition – this helps to encourage retirement villages to keep their centres well maintained;

    2. Requiring copies of a village’s insurance policy documents and the most recent safety inspection report to be available to residents – further transparency affords better protection to residents, current and future when considering retirement villages;

    3. A new ‘average resident comparison figure’ in the Disclosure Statement to facilitate more effective comparison between villages from 1 March 2018 – further transparency when future residents are considering retirement villages;

    4. Reducing the maximum amount payable for an operator’s legal and other expenses in preparing a village contract to $50 – reducing the costs payable by a future resident;

    5.  Adding new matter for which village rules can be created, including smoking in communal areas – broadening the powers of the operators so that they can ensure a safer and better quality of living for residents;

    6. Requiring clearer information in annual budgets on head office expenses – providing further transparency around financial matters of villages;

    7. Lowering the maximum amount allocated for contingencies to $1 – reducing the financial burden on villages under contingencies;

    8. Extending the list of items that cannot be financed by recurrent charges – providing further financial protection to current and future residents of villages;

    9. Simplifying the process allowing residents to hold office on a residents committee for longer than three years – giving residents more power to be involved in the management of the residents committee;

    10. Putting an obligation on the retirement village operator to serve the prescribed form Condition Report on the prospective resident at least 14 days before entering into the contract, or if the premises are still being constructed, 14 days before the resident occupies the premises;

    11.Giving clarification to process for disputes between operators and residents and nominated representatives of residents for the purposes of disputes;

    To find out more on the above article, contact Peter Crittenden on (02) 4626 5077 or pcrittenden@marsdens.net.au

    The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.

Marsdens Offices