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Experts start work on
retirement contracts
A new committee of experts has been appointed to develop a set of standard terms to be used in retirement village contracts.
Minister for Fair Trading, Anthony Roberts said the changes would make it easier for people considering retirement village life to understand and compare contracts.
“Prospective residents need contracts that clearly set out their rights and responsibilities in an easily understood, plain English format,” Mr Roberts said.
“Many of the village contracts currently being used are too complex, leaving people unable to understand the differences in costs and conditions between villages.”
| Committee to set standard terms |
He said the wide variety of contracts made it harder for residents to make comparisons and added unnecessary complexity for operators.
“The development of a standard contract for the retirement village industry will benefit residents and deliver greater confidence in the industry,” Mr Roberts said.
He said each member of the expert committee had been chosen because he or she had specialist knowledge in contracts or retirement village matters.
He said they brought together a broad cross-section of knowledge from residents, industry and the legal profession, which would help to maintain the buoyant future of the retirement village sector in NSW.
“With the average age and longevity of the population steadily increasing, the demand for retirement accommodation will only increase,” Mr Roberts said.
“At the same time, prospective retirement village residents are becoming increasingly sophisticated and discerning.”
He said simplified contracts would help consumers to make better choices and encourage further innovation in the sector.
Mr Roberts said all standard terms would be consistent with current requirements of the Retirement Villages Act 1999 and the Retirement Villages Regulation 2009.
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