Retirement Village Occupation Right Agreement
Retirement villages are becoming increasingly popular as more seniors look for a comfortable and secure lifestyle during their golden years. When considering a retirement village, one of the most important things to understand is the Occupation Right Agreement (ORA).
An ORA is a legal agreement between the resident and the village operator that determines the rights and obligations of each party. It sets out the terms and conditions for the resident’s occupancy in the village, including the accommodation type, costs, and services provided. It’s essential to read and understand the ORA before signing any agreement to avoid any misunderstandings or unexpected costs.
In general, there are two main types of ORAs: a Licence to Occupy and a Unit Title. A Licence to Occupy is the most common type of agreement used in New Zealand. The resident purchases the right to live in the village but does not own the unit or the land. The village operator holds the title to the property and is responsible for the maintenance and upkeep.
On the other hand, a Unit Title ORA allows the resident to purchase a unit in the village and becomes the owner of the unit and the land it’s built on. This type of ORA is less common, and the resident is responsible for the maintenance and upkeep of their unit.
When considering a retirement village, it’s important to know the costs involved. The ORA will outline the costs associated with the village, such as the administration fee, weekly service fee, and any ongoing costs. It will also specify any additional services or care that may be required and outline any potential costs related to those.
It’s essential to understand the village’s rules and regulations before signing the ORA. This may include restrictions on pets, visitors, or noise levels. Still, it will also include details about the village’s community facilities, such as community halls, gyms, or swimming pools.
It’s also vital to understand the exit clauses in the agreement. This may include provisions for the resale of the unit, which determines how much of the sale price the resident is entitled to receive. In some cases, the village may also have an obligation to find a new buyer for the unit within a specific timeframe.
In conclusion, understanding the Occupation Right Agreement is crucial when considering a retirement village. It’s essential to read and understand all of the terms and conditions of the agreement to make an informed decision. Before signing any agreement, it’s advisable to seek legal advice from an experienced lawyer. By doing so, you can ensure that your retirement years are comfortable, enjoyable and free from any unnecessary stress.