When you move out of a village there will be a range of fees and charges payable which may include:

• deferred management fee
• refurbishment/renovation costs
• reserve fund contributions
• marketing and selling fees
• recurrent charges

Exit entitlements

An exit entitlement is a part refund of the ingoing contribution you paid when you moved in. 

Before signing a residence contract, you should have been given a disclosure statement (Form 1 or 1A). This will include:

• how the exit entitlement payment is calculated
• when you will be paid your exit entitlement
• whether you need to pay any refurbishment/renovation costs
• any other fees payable to the village operator.

Your right to an exit entitlement will usually depend upon your unit being leased or sold, which could take some time.  Some residence contracts will ensure that your exit entitlement is returned with a specified period of time, for example 90 days.

Recurrent charges 

Under most residence contracts recurrent charges continue to be payable after leaving a village. How long you must continue to pay recurrent charges will be dependent on your type of tenure and when you signed your residence contract.

In all cases, the retirement village must stop charging the resident if their unit is sold or re-leased during this time.

The time periods are explained in the flow chart guide to time caps on recurrent charges.

Owner residents (strata or purple title villages) 

Owner resident contract will require payment of recurrent charges until the unit is sold and settlement occurs.

For non-owner residents (lease/licence villages) 

After the resident leaves or evidence of death is provided, recurrent charges must be paid for:

• 3 months for contracts signed after 1 April 2014
• 6 months for contracts signed before 1 April 2014

Deceased estates 

The village operator must be given evidence of the resident’s death, or the unit being permanently vacated, whichever is later. This might make the recurrent charges payment periods longer.

The village operator may accept the following as evidence:

• Death certificate
• Grant of probate
• Letters of administration from a court