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Retirement Villages Act 2003

Validation of fees

Schedule 2: Disclosure statements

You could also call this:

"Important Information About the Retirement Village"

Illustration for Retirement Villages Act 2003

When you look at a retirement village, you need to get a disclosure statement. This statement has lots of information about the village. It tells you who owns the village and how it is managed. It also tells you about the costs and what you get for your money. The statement also talks about your rights as a resident. It explains how you can end your contract and what happens if you do. It tells you about any fees you have to pay and how they are worked out. You also get information about the village's finances and how it is run. This includes details about maintenance and any plans for new buildings or services. You can find more information about your rights in the Retirement Villages Act 2003 and the code of practice.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM221407.

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Schedule 1: Registration and register, or

"What's in the Retirement Village Register"

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Schedule 3: Occupation right agreements, or

"Rules for Living in a Retirement Village"

2Disclosure statements Empowered by s 30

1Ownership, management, and supervision

  1. A disclosure statement must contain all prescribed details relating to the following:

  2. the ownership structure of the retirement village and the type of occupancy right or occupancy rights offered within the retirement village:
    1. the type of interest a resident of the retirement village has in his or her residential unit, including (without limitation)—
      1. whether the interest can be sold or otherwise dealt with; and
        1. any conditions or restrictions on that sale or disposition:
        2. the management arrangements for the retirement village:
          1. the identity and role of the statutory supervisor (if there is one):
            1. any exemption from the requirement to appoint a statutory supervisor.

              2State of village, services, charges, and accounts

              1. A disclosure statement must contain all prescribed details relating to the following:

              2. the state of the retirement village, including (without limitation)—
                1. its stage of completion; and
                  1. the numbers of occupied and unoccupied residential units; and
                    1. the number of new units planned and the location, size, and effect on residents of those new units; and
                      1. the actual and average time taken to date to dispose of vacant residential units (if any) to new residents:
                      2. the services and facilities offered at the retirement village and new services or facilities planned and the location, size, and effect on residents of those new services or facilities:
                        1. charges of all kinds, including (without limitation)—
                          1. entry costs, transfer costs, periodical charges, and charges for maintenance, rates, and insurance; and
                            1. the frequency of billing; and
                              1. the respective roles of the operator and the residents in setting charges:
                              2. provision made for maintenance and refurbishment at the retirement village:
                                1. the preparation, auditing, and disclosure of financial accounts for the retirement village.

                                  3Occupation right agreements, terminations, deductions, and estimated financial returns

                                  1. A disclosure statement must contain all prescribed details relating to the following:

                                  2. the cooling-off period and the right to cancel for delay provided by section 28 of the Retirement Villages Act 2003, and any additional cooling-off period or right to cancel for delay given by the occupation right agreement:
                                    1. whether the operator or a resident can vary an occupation right agreement and if so in what circumstances:
                                      1. the arrangements for termination of an occupation right agreement, including (without limitation)—
                                        1. the effect of termination on the position of other persons living in the residential unit vacated by the resident; and
                                          1. the nature of any continuing charges following termination; and
                                            1. the process to be followed in finding a new resident for a vacant residential unit; and
                                              1. the process for determining the sum or sums to be paid by the new resident for the right to occupy the vacant residential unit and the entitlements of any resident, former resident, or the estate of a former resident in relation to that sum or sums:
                                              2. deductions from payments made by or due to residents, including (without limitation)—
                                                1. deductions made on entry or exit from the retirement village and deductions from periodical payments; and
                                                  1. deductions made for the purposes of maintenance, refurbishment, and development; and
                                                    1. deductions for rates, maintenance and other outgoings:
                                                    2. the estimated financial return that a resident, former resident, or the estate of a former resident, could expect to receive on the sale or other disposal of a vacant residential unit at intervals of 2 years, 5 years, and 10 years after the resident enters into an occupation right agreement; including (without limitation)—
                                                      1. how that estimated return is affected by the duration of the resident's occupation; and
                                                        1. whether that estimated return will be affected by a termination of the occupation right agreement arising out of a breach of the agreement by the resident or a decision of the resident to terminate the agreement voluntarily.

                                                        4Other matters

                                                        1. A disclosure statement must—

                                                        2. disclose whether any holder of a security interest to whom section 12(1)(b) applies has refused to consent to the registration of the village and the effect of that refusal; and
                                                          1. contain all prescribed details of any exemption from the requirement to comply with a provision or provisions of the code of practice; and
                                                            1. contain any other matters required to be included in the statement by the code of practice or any regulations made under the Retirement Villages Act 2003.