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Apartment 614 - One Bedroom
80 Maranui Street,
Mount Maunganui, Bay Of Plenty
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It is a requirement that each new resident receives legal advice to ensure understanding of the occupation right agreement prior to signing. The lawyer is required to witness the residents signature after clearly explaining all content of the agreement.
The resident is welcome to use a lawyer of their choice to review, explain and witness the signature or alternatively residents can contact the New Zealand Law Society for a list of lawyers in their region who specialise in retirement village contracts.
It is important that any verbal agreements between the village operator and the resident are either amended in the contract or alternatively document separately in writing and signed by both parties. Any changes should be discussed with your lawyer who can support you with ensuring they are recorded officially in writing.
Residents may also be liable for capital loss if the ‘entry payment’ the new resident pays is less than what was paid by the previous resident. This is an unlikely situation but could occur with external market factors pushing value down. It is recommended that you speak with the village manager or sales consultant to make sure you have a clear understanding of the contractual details surrounding capital gains and loses. This information can also be found in the village's most recent ‘disclosure statement’ which is listed on the New Zealand Companies Office website.Questions to ask
The benefit for residents choosing a RVA accredited village is reassurance that the village is being run in accordance with the Retirement Village Act as well as demonstrating a level of commitment by village management to operate in a manner that both protects and meets the needs of their residents.
Typically, the main role of the residents' committee is to represent the interests of residents by acting as the communication channel between them and the operator.
Specific functions of a residents committee include:
Village units sold on a License to Occupy will most likely charge what is called a ‘deferred management fee’. This fee covers the long-term maintenance and replacement of the village communal areas and facilities. It is included as part of the total amount you pay when purchasing your Occupation Right Agreement. When your ORA ends, the repayment sum you receive is the cost of the purchase, less the DFM (and any outstanding fees or money owing).
For example, lets say a village charges a deferred management fee of 25% which is accrued annually at 5% over 5 years. If you purchased a unit in this village for $300,000, then you would be paying $15,000 each year for the first five years of residence. When you leave, you would receive the $300,000 minus $75,000, which is your maximum DMF. If you left the village before 5 years, you would likely only pay for the time you had accrued, however it is a good idea to check with the village manager for clarification on how this fee is accrued.
Yes as outlined in Retirement Village Act, all registered New Zealand villages must have a complaints process which is made known to residents.