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Disclosure Statement

Fees and Charges

A disclosure statement must be provided to prospective residents at least 10 days before they sign a residence contract. A disclosure statement is intended to improve the transparency of residence contracts and to provide prospective residents with a summary of the relevant financial information before they sign a contract.

The disclosure statement must be in writing and set out the financial arrangements for residents of the retirement village, including:

  • 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 utilities, 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).

See Retirement Villages Act 2016 (SA) s 21.

Legal and Financial Advice

The disclosure statement must include a statement advising that [s 21(2)(c)]:

  • the disclosure statement does not form part of the residence contract, and is intended only as a summary of certain information in the contract;
  • the prospective resident must ensure they fully understand the terms of the residence contract itself, rather than relying on the disclosure statement; and
  • recommending that the prospective resident seek independent legal and financial advice about the proposed residence contract.
Disclosure Statement  :  Last Revised: Thu Feb 15th 2018
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