We can help you with
- Reviewing and advising on occupation right agreements (ORA's)
- Reviewing and advising on retirement village disclosure agreements
- Providing advice in relation to leaving a retirement village
Get in touch with Malley & Co today. We provide excellent legal help and advice, and we have experts that specialise in retirement village law.
A licence to occupy, often referred to as an occupation right agreement (or ORA), gives a person the right to occupy a unit in a retirement village in New Zealand.
A licence to occupy is the contractual right to occupy the property, but you have no legal ownership of the property itself or the land.
A Retirement Village disclosure statement contains important information, including the following:
The disclosure statement should also outline any plans for the development of the village, including the building of new units (and the effect of this on existing residents), as well as any conditions and restrictions on the sale of units, and the time it has taken to sell vacant units over the past 12 months.
Depending on the circumstances in which you leave the property, you will likely have to pay an exit fee.
This exit fee could include the following potential leaving costs:
Under a licence to occupy, it’s common for a retirement village operator to retain between 20-30% of your initial capital sum; this is usually referred to as a deferred management fee.
A good way to think of the deferred management fee is that it covers the long-term costs of residing at the village, such as maintenance of facilities and communal areas, and the re-licensing and refurbishment of your property after the licence ends.