The disclosure statement must be in writing and set out the financial arrangements for residents of the retirement village, including [Retirement Villages Act 2016 (SA) s 21]:
a description of all fees and charges (whether on entry or exit or once off or recurrent fee), including the amount or how the amount is to be calculated
what the operator does with the fees and charges
any utilites, services or facilities provided or available to residents that the operator has an interest in or gains a benefit from
the way the resident’s exit entitlement will be calculated and the effect of section 30 of the Act where the resident is exiting to enter into an aged care facility
the insurance arrangements that are in place for the retirement village
a statement advising of the possibility of a fee or charge arising for the operator to recover an unforeseen expense (this is called a special levy under the Act)
It must be made clear that the disclosure statement does not form part of the residence contract, and is intended only as a summary of certain information in the contract [s 21(2)(c)].
While the disclosure statement is useful, the prospective resident must ensure that they fully understand the terms of the residence contract itself, rather than relying on the disclosure statement, and should seek independent legal and financial advice about the contract, before entering into the contract.
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