What to Check Before Signing a Retirement Village Agreement in Victoria

Reforms and Transitional Position

The main reforms in the Retirement Villages Amendment Act 2024 (Vic) commenced on 1 May 2026. Contracts signed from that date must comply with the current mandatory and prohibited-term rules, including the rule that a fee, cost or charge not disclosed in the operator's information statement is not payable by the resident. Use of the prescribed standard-form contract is required from 1 September 2026 under the Retirement Villages Amendment (Standard Form Contracts) Regulations 2026 (Vic). During the transitional period, the absence of the standard-form contract does not, by itself, invalidate a compliant contract. Contracts signed before 1 May 2026 continue to be governed by their own terms and the transitional provisions of the Act.

The Information Statement

The current disclosure regime is built around the information statement. Key checks include:

• the signed information statement is published on the operator's website;
• a copy has been provided in the circumstances and within the timeframe the Act requires — including with targeted promotional material and, for a prospective resident, at least 21 days before entering the contract;
• the information statement addresses the village structure, entry payments, recurrent and optional service charges, departure or deferred-management fees, capital-gain and capital-loss sharing, reinstatement obligations, exit-entitlement calculation and payment date, sale or reletting arrangements, insurance, services, facilities and the village dispute procedure; and
• any fee, cost or charge that will be payable is fully disclosed — undisclosed items are not recoverable from a resident under a contract signed from 1 May 2026.

Legal Structure and Tenure

Different villages use different structures. Confirm which applies:

• freehold or strata title (owner resident, with an owners corporation);
• long-term lease, licence or right-to-reside (non-owner resident);
• company-title or unit-trust arrangements;
• any separate management contract and the village rules; and
• any owners-corporation rules or aged-care arrangement running alongside the residence documents.

Owner and non-owner residents are statutory categories under the Retirement Villages Act 1986 (Vic) with materially different positions on charges after departure, exit entitlements and reinstatement — do not assume one set of rules applies to both.

Cooling-Off and Any Settling-In Period

The Act provides a cooling-off period of seven business days from the day the resident signs the contract. The contract must clearly disclose that right, cancellation must be given in writing in the form the contract requires, and the operator may retain only the prescribed administration amount. Any contractual settling-in period is separate from the statutory cooling-off right, is conditional on the terms of the contract, and generally concerns a non-owner resident.

Money — Entry, Recurring and Exit

• Entry payment. The amount, when it is payable and how it is treated on exit.
• Recurrent maintenance charges. What is included, how increases are calculated and consulted on, and how the capital maintenance plan and fund are funded and used.
• Optional service charges. Which services attract additional fees and on what basis.
• Departure or deferred-management fee. The percentage, accrual period, base amount and daily calculation, together with any relevant statutory rules on how the fee accrues.
• Capital gain and capital loss. How gain and loss on resale are shared; for contracts from 1 May 2026 a resident cannot bear a higher share of loss than of gain.
• Reinstatement. What the resident is required to do (or pay) at exit and what falls to the operator.
• Exit entitlement. How and when the exit entitlement is calculated and paid. For contracts signed on or after 1 May 2026, payment must be made by the earliest of the date fixed by the contract, a date otherwise agreed between the resident and the operator or proprietor, and 12 months after the resident delivers up vacant possession of the premises. Any qualifying settling-in-period exit has separate timing and is not the same as the general rule.
• Resale or reletting. Who markets and sells the unit, at what cost and on what timetable.
• Insurance and rates. Who is responsible for building and contents insurance, council rates, land tax and any owners-corporation levies.

Post-Departure Charges and Estate Position

Whether monthly maintenance or personal-service charges continue after vacant possession or after death depends on the contract date, tenure and applicable statutory limits. Do not assume charges continue until resale in every case. Similarly, an exit entitlement may or may not require production of a grant of probate or letters of administration; that depends on the operator's evidence policies and the value and nature of the interest, not on a universal rule. The estate can usually be administered in the normal way while the exit-entitlement timetable runs in parallel.

Annual Contract Check and Ongoing Advice

Operators must offer an annual contract check to residents. A resident may also request a written contract check on the basis and within the timeframes set by the Act. Independent legal advice can be obtained at signing, at renewal or in response to a specific decision such as a fee change, a departure or a dispute.

Pre-Signing Checklist

1. Signed information statement received in time and published on the operator's website.
2. Residence contract, any management contract and village rules identified, and the legal structure confirmed.
3. Cooling-off right and any settling-in period clearly stated in the contract.
4. Entry, recurring and exit money modelled at multiple departure points.
5. Reinstatement, resale and exit-entitlement provisions cross-checked against the applicable statutory rules for the contract date.
6. Owners-corporation or aged-care documents reviewed where relevant.
7. Estate planning documents current — including Wills and enduring powers of attorney.
8. Independent legal advice obtained before signing.

Related Reading

• Retirement Villages in Victoria: A Practical Guide
• Retirement Village Contracts Explained
• Retirement Village Disputes and VCAT
• Leaving a Retirement Village: Exit Fees and Resident Rights

Frequently Asked Questions

How Parke Lawyers Can Help

Parke Lawyers acts for Victorian prospective residents, families and residents’ representatives on retirement village contracts under the Retirement Villages Act 1986 (Vic), through our Retirement Living & Aged Care team. Speak with our team before signing so the financial and exit terms can be understood and any issues raised before entry.