Buying into a NSW Retirement Village: Legal Checklist

Moving into a retirement village is not the same as buying an ordinary house or strata apartment. The contract may provide a lease, licence, strata interest or another form of occupancy, while fees and financial adjustments can continue beyond the day a resident leaves.

The Retirement Villages Regulation 2025 commenced on 1 September 2025 and strengthened information, reporting and enforcement arrangements. Prospective residents should still investigate the individual village and obtain advice on the proposed contract.

Understand What You Are Acquiring

The legal structure affects registration, control, resale and responsibility for repairs. A substantial entry payment does not necessarily provide the same rights as ownership of a conventional home.

Read the Disclosure Material

Review the prescribed disclosure documents together with the residence contract, village rules, recurrent charges and financial statements. Marketing material does not replace the signed legal documents.

Fees During Occupation

• Entry and establishment payments.
• Recurring service or maintenance charges.
• Charges for optional services.
• Responsibility for repairs, replacements and refurbishment.
• Possible special levies or adjustments.

What Happens When You Leave?

The contract may provide for a deferred management fee, sharing of capital gain or loss, refurbishment costs, sale expenses and a process for calculating and paying the exit entitlement.

Families should understand who controls marketing, how the resale price is set, which charges continue after departure and when funds are expected to be released, particularly if money will be needed for aged care.

Maintenance and Village Information

The 2025 regulation introduced updated disclosure and a streamlined annual capital-maintenance reporting process. It also strengthened Fair Trading responses concerning records, conflicts of interest, elder-abuse prevention strategies and complaint handling.

Review Checklist

• Identify the legal form of occupancy.
• Calculate likely entry, ongoing and departure costs.
• Check repair and refurbishment obligations.
• Review services, facilities and village rules.
• Understand resale and exit-entitlement timing.
• Consider affordability if personal circumstances change.
• Obtain legal and financial advice before signing.

Official Information

NSW Fair Trading explains the Retirement Villages Regulation 2025 changes.

How Russell Kelly & Associates Can Assist

Russell Kelly & Associates can review retirement-village documents and explain the legal structure, financial provisions, continuing charges and departure arrangements.

Read about our Retirement Villages and Property Law services.

This article provides general information and is not legal, financial or aged-care advice. Individual circumstances and current law must be considered. Information current as at 9 September 2026.