All you need to know before you move in.
Each retirement village has a set of rules and principles that guide the day-to-day operations of the village. These rules cover such things as pets, use of communal facilities, garbage disposal and parking to name a few. The village rules are based on the model rules as prescribed by the Retirement Villages Legislation and have been modified to suit the needs of each village. Rules can only be amended by the residents of a village and changes must be passed by majority.
Residents contribute a fortnightly or monthly amount to the village budget, known as a recurrent charge.
These monies are used for the day-to-day operation of the village and expenditure of these monies is approved each year by the village residents. The amount of the fees will vary depending on the services offered and the staffing required at a particular village. All residents are provided with quarterly financial statements to reflect the expenditure in the village.
Within Catholic Healthcare, the management team meet with residents each year to determine the village needs for the coming financial year. A statement of proposed expenditure is prepared and presented to residents for their comment and review.
Residents then have time to revise and approve the planned expenditure. Once approved, the proposed expenditure statement becomes the village budget.
Catholic Healthcare cannot spend monies other than what has been approved in the budget without the express permission of residents.
Maintenance fees generally include (but may not be limited to):
- Salaries – such as manager, gardener, maintenance person
- Repairs and maintenance of items within the village
- Resident transport
- Emergency call systems
- Fire and safety monitoring
- Common area lighting, cooling and heating
- Utilities such as electricity, water and waste disposal
Audited financial reports are distributed to residents each year in the month of October.
Will I own the retirement village unit?
Our villages operate under a loan licence contract. This means that Catholic Healthcare retains ownership of the unit but provides the incoming resident with a ‘licence to occupy’. At the conclusion of the residency the ingoing contribution (upfront payment for the unit) will be refunded within six months or earlier if a new resident enters the unit. If you need to move into residential aged care and you choose Catholic Healthcare for your ongoing care, your refund will be finalised once you become a permanent resident of that service.
What is a ‘deferred management fee’ (DMF) or ‘departure fee’ and how does it apply?
Departure fee is the term used to describe those funds deducted by the village at the end of your tenure. The DMF is calculated over a period of six years. An amount of 5% is deducted each year from the ingoing contribution paid. Therefore, the maximum retention by Catholic Healthcare – should your tenure reach six years or greater – is 30%. At the end of your tenure Catholic Healthcare will take care of all refurbishment, marketing and selling costs.
Our village management team are happy to provide you with an explanation of our terms. It is essential that your family also understands the nature and terms of the fee to avoid any confusion on departure. The departure fee should be discussed with your legal advisors and it is important that you know what the financial arrangements are prior to signing your contract.
Is ongoing care or support available within the village?
The Village Manager is available to assist residents to access in home support and general assistance when required. Support can be one off, short term or on going depending on need. Residents are of course able to secure support services on their own if preferred. Residents who require assistance beyond what can be appropriately provided within the village, will be supported in securing full time residential care.
Catholic Healthcare’s Community Services specialise in supporting people to remain in their retirement unit independently. Our residents regularly receive information through the village newsletter about the services available.
The Village Contract
A sample of the village contract is available on request if you would like to discuss it with your legal representative prior to making a firm commitment to a particular village or unit.
Your village contract will be provided no later than 21 days prior to occupation of your unit. This allows you 14 days in which to consider the terms and conditions of the contract and to seek legal advice prior to signing. You will have a cooling off period of seven days after you sign the agreement, provided you do not move into the premises within those seven days.
A 90-day settling in period commences from the date of occupation of your unit. You are entitled to the refund of your ingoing contribution if you exit the village in the first 90 days, as well as a full refund of the fortnightly fees paid thus far. You will however, be asked to pay a fair market rent for your premises for the period in which you did occupy. You will also be asked to cover the cost of any repairs for damage in excess of what is reasonable fair wear and tear.
Your village contract will include:
- The standard contract
- The disclosure statement
- The village rules
- The unit condition report
- Floor plans of the village and the unit
The Condition Report
Before a village contract is issued, residents are asked to meet with a representative of Catholic Healthcare in the unit they intend to occupy. Together they will assess the current state of the unit or apartment under offer. The condition report must be completed by both parties to the contract and must take place prior to the issue of the contract, as it will be annexed as part of the contract that it ultimately issued. You should not sign the condition report unless you agree with the statements made within it. The condition report is a statement of the condition of the unit at a given time.
For more information about any of our services, please call all us on 1800 225 474