The basics · 4 min read
How village contracts work
What you’re actually buying when you move into a retirement village, and the papers to ask for.
The main kinds of contract
- Licence or lease. The most common. You pay to live in the unit for life or a long term. When you leave, the village repays your move-in price, less the exit fee and other charges.
- Owning your unit (strata title). You buy the unit and sell it yourself when you leave. There may still be an exit fee.
- Rental. No move-in price. You pay rent and fees, and there’s nothing to get back.
One village, several contracts
Many villages offer a choice: a higher move-in price with a lower exit fee, or the other way round. On each village page you can switch between them, and we start with the one that costs you least for your situation.
The papers to ask for
- The full contract you would sign.
- The disclosure statement (the official summary of the costs).
- The exit fee table, year by year.
- The village’s budget and fee history.
It’s always worth having a lawyer read the contract before you sign.