By Nicole Wilde

5 June 2018

Thinking of buying or selling a strata unit in a retirement village?

People in Victoria over 55 years of age and who have retired from full time employment, may be eligible to purchase a unit in a retirement village.

What are the Advantages?

The advantages of living in a retirement village, instead of a stand-alone house or unit include:

  • The ability to receive services that are provided to village residents,
  • Out-sourcing parts of the day to day management of common areas and facilities to a village manager, and
  • The general increased sense of security and community.

If you are considering buying or selling a retirement village unit, it is important to be  aware that it is not a straight-forward conveyancing transaction. Ensure you protect yourself by getting specialist legal advice.

What are the Legal Details?

When you purchase the retirement village unit:-

  1. You will become the owner of a freehold title to a strata lot (or lots). You will need to ensure that the contract includes the sale of all of the lots associated with the unit including car parking and storage lots on separate titles. For example, caveats may be registered on the title of the property by the village manager;
  2. Be aware that you may automatically become a member of an Owners Corporation (sometimes more than one). Consider how much those levies will be each year. This will often be linked to the extent to which the village manager is responsible for the communal property (e.g maintenance, capital upgrades, etc);
  3. See what kinds of contractual documents you need to sign with the village manager and what costs you’ll become liable for under that contract. Carefully consider what obligations you then have under contract when you or the executors of your estate decide to sell the unit, and how those obligations may affect the re-sale value of your unit.

The Owners Corporations Act 2006, the Retirement Villages Act 1986 and your specific contract with the village manager, will regulate how you use and financially contribute to the retirement village and its operation.

Tisher Liner FC Law guides its valued clients through the sale and purchase of retirement village units in Victoria with a view to preserving the value of the retirement village unit.

 

Any further questions, please contact Nicole Wilde or a member of our Owners Corporation team.

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