Retirement Villages 

Entering a retirement village is an important financial and lifestyle decision. Different villages operate under different legal structures, and the terms of occupation can vary significantly.

Jordan Djundja Lawyers provide clear advice to help you understand your rights, obligations and long-term financial position before committing to any agreement.

In New South Wales, there are generally three common types of occupation arrangements.

Long-Term Lease

Under a long-term lease (often for 99 years), the resident has the right to occupy the property for a specified period while the developer retains ownership of the land.

• A lease agreement granting the right to reside in the property
• A separate service agreement outlining fees and services provided
• Management arrangements for financial and day-to-day operations

The lease may be transferable, but exit fees and other financial adjustments may apply.

Licence Agreement

Under a licence arrangement, the developer retains ownership of the property and the resident pays an entry contribution, loan or donation in exchange for the right to occupy.

While entry costs are often lower than other models, residents generally do not benefit from capital growth in the property.

Strata Title Ownership

Strata title provides ownership of the unit, together with membership of the owners corporation (body corporate).

This structure may involve higher upfront costs, including stamp duty. However, residents may benefit from capital growth and have voting rights in the management of the complex.

Why Legal Advice Is Important

Retirement village contracts can be complex and may include deferred management fees, ongoing service charges, exit fees, reinstatement costs and restrictions on transfer or resale.

We strongly recommend obtaining independent legal advice before signing any retirement village agreement.

Our team can review documentation, explain the Retirement Villages Act 1999 (NSW), and ensure you fully understand your legal and financial position before making a decision.