There is concern within the retirement village industry that changes to Queensland’s Retirement Villages Act 1999 regarding “buybacks” are contributing to financial stress that could impact not only retirement village operators but also the residents within the villages.
The changes require retirement village management to “buy back” the property if the resident has been unable to sell their unit or resident rights within 18 months.
There is concern amongst operators and residents that the impact of COVID-19 on the property market will result in lengthier delays to sell the units or resident rights.
The concerns apply to retirement village operators and residents in both suburban and regional areas.
The Queensland Government’s stance on the buyback legislation is that it provides a level of protection for both retirement village operators and residents.
If a retirement village operator is experiencing financial distress, there are avenues available such as:
- mediation (a less expensive method to resolve the issue via negotiation), or
- the Queensland Civil and Administrative Tribunal (a formal legal process that incurs costs).
There are no mediation/tribunal decisions that are publically available but it is believed in some cases extensions have been granted.
Further Information For Potential Residents
Are you looking at entering into a retirement village?
How We Can Help
It is essential to obtain legal advice before you buy a retirement village unit in order to be fully informed of all the costs and issues which may arise and ensure there are no surprises later on.
When you have been provided with all of the information you can then make an informed decision on whether buying into a retirement village is the right lifestyle choice for you.
As one of our clients said “Invest in the best – RMO“.
We are available to meet with you at any of our local offices (Brisbane, Gold Coast, Beenleigh, Cleveland and Jimboomba) or by telephone or video-conference.
This article is for your information and interest only. It is not intended to be comprehensive, and it does not constitute and must not be relied on as legal advice. You must seek specific advice tailored to your circumstances.