The Queensland Government is inviting feedback on the operation of the Retirement Villages Act 1999 (Qld), and in particular the provisions which deal with the closure of retirement villages.

The Office of Fair Trading has prepared a discussion paper to highlight the issues faced by residents and scheme operators when a retirement village closes. Scheme operators should take note of the discussion points surrounding the following issues:

• Closing a retirement village scheme and pre-contractual disclosure. The paper addresses pre-contractual disclosure for prospective residents - specifically a resident's obligation to pay reinstatement costs - in the situation where a retirement village ceases to operate. The paper also addresses when a retirement village scheme should be able to be closed and how long the winding down period should be.
• Timeframes involved in closing a retirement village scheme. The paper addresses the timing involved in paying exit entitlements to residents, and in particular, whether the provisions in the current Act adequately legislate for situations where a retirement village ceases to operate.
• Financial considerations for closing a retirement village scheme. The paper addresses scheme operators paying compensation to residents (in addition to the exit entitlement) in circumstances where a retirement village ceases to operate.

To read the discussion paper and learn how to submit feedback, please click here. The closing date for providing feedback is 9 October 2011.

For more information on the relevant issues for a scheme operator in closing a retirement village or any other retirement village query, please contact HopgoodGanim's Retirement Living team.

Tracey Rundle, Partner
Tel +61 7 3024 0376
t.rundle@hopgoodganim.com.au

Angie Coleman, Senior Associate
Tel +61 7 3024 0385
a.coleman@hopgoodganim.com.au

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Please click here to read other publications written by our Retirement Living team.