- 1Look beyond the entry price — ongoing and exit fees determine the true cost.
- 2Queensland law requires operators to give prospective residents key documents before a contract is signed.
- 3Get independent legal advice and involve family early, particularly where estate planning is affected.
The three layers of cost
- ✓Ingoing contribution: the amount you pay to enter the village, which may be structured as a lease, licence or purchase.
- ✓Ongoing charges: general services charges and maintenance fund contributions while you live there.
- ✓Exit fees: a deferred management fee and other costs deducted from your exit entitlement when you leave.
Comparing villages on the entry price alone can be misleading. The exit fee, which commonly increases with each year of residence, can make a significant difference to what you or your estate receive.
Documents you should receive
Queensland law requires the village operator to give prospective residents specified documents before a residence contract is entered into, including information that allows villages to be compared. Read them carefully, and bring them to your lawyer before you commit.
Check how the contract deals with moving to a different unit or to aged care, what happens if you want to leave early, and how any capital gain or loss on resale is shared.
What happens when you leave
When a residence contract ends, the resident or their estate becomes entitled to an exit entitlement, calculated under the contract after deducting exit fees and other amounts. Queensland law sets rules about when that entitlement must be paid, which provides more certainty than older arrangements did.
Because the exit entitlement may form part of your estate, it is worth reviewing your will and enduring power of attorney at the same time.
Common questions
Do I need a lawyer to review a retirement village contract?+
Independent legal advice is strongly recommended. The contracts are long and the financial consequences can be significant for you and your family.
Can my family help me decide?+
Yes, and family involvement helps. Your lawyer will still need to take instructions from you directly and make sure the decision is yours.
Sources & further reading
- ↗Queensland Legislation — Retirement Villages Act 1999 (Qld)
- ↗Queensland Government — law and justice — retirement village information for residents
This guide is general information about Queensland and Australian law and is not legal advice. Laws change and every situation is different — speak with us about your specific circumstances before acting.
