- The new Act is a step in the right direction, but it doesn't deal with some of the fundamental issues. Agreements are too one-sided in favour of village operators, and residents lack the bargaining power to get these changed.
- While the Retirement Villages Association represents village operators, there is no equivalent residents' body. This needs to be addressed. An independent complaints body (similar to the Health and Disability Commissioner or the Insurance and Savings Ombudsman) would provide more independent protection for residents.
- If you're thinking of moving into a retirement village, arrange to meet the Residents Committee and talk to the residents on a one-on-one basis.
- If the village operator gives you verbal assurances, make sure you receive those in writing before you sign the contract.
- Make sure you read the contract and understand the implications of the terms and conditions. Get it checked by a lawyer who's experienced in these types of contracts.
- Operators shouldn't be able to make residents liable for capital losses if they're not willing to share capital gain with them.
- Try to do some bargaining with the operator over the refurbishment, maintenance, and capital-gains provisions of the contract. The more pressure that's put on village operators, the more likelihood that the industry will eventually offer a better deal on these issues.
More information
- The Retirement Commission www.retirement.org.nz
- Sorted www.sorted.org.nz
- Retirement Villages Association www.retirementvillages.org.nz
Report by Catherine Hutton
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