PROPECTIVE COSTS DOCUMENT

The Prospective Costs Document (PCD) (DOCX, 240KB) gives you information about a specific unit in a retirement village. The PCD contains details about the costs of entering the retirement village and the current ongoing costs. The PCD provides an understanding of the financial commitment involved in entering, living in, and explain the costs you will pay when you leave the unit after 1, 2 5 and years of residence.

The PCD includes information about:

• the scheme operator
• your ingoing contribution
• ongoing costs
• the layout of the unit, fixtures, fittings and furnishings
• exit costs when you leave the village.

The scheme operator must give you the PCD within 7 days of you showing interest in a unit.

You must review the PCD for a unit for at least 21 days prior to entering into a resident’s contract. You will need to read the documents carefully and seek professional advice. You may waiver this period if you have sought legal advice from a Queensland Lawyer.

When circumstances change

The Village Comparison Document must be up to date and comply with the requirements of the Retirement Villages Act 1999. (Opens in new window) If there are any changes in the VCD and PCD, the scheme operator must notify you at least 21 days prior to entering into a residence contract.

RESIDENCE CONTRACT

To live in a registered retirement village, you must enter into a residence contract. The contract includes information about your rights and responsibilities when living in the retirement village as well as those of the operator.

When you sign a contract, the operator must have already supplied you with a VCD and a PCD and the village by-laws. The scheme operator must give you a copy of your signed contract.

By law, an operator must register the retirement village before entering into a contract. Residence contracts for unregistered retirement villages are unenforceable and can be terminated. See our list of registered retirement villages in Queensland

What information is included

The residence contract must include:

• the start and end dates of the cooling-off period
• your right to withdraw the contract before the cooling-off period ends
• the ingoing contribution amount
• the exit fee payable under the contract
• the resident’s exit entitlement
• the services charges, the amounts payable and when they are due
• the insurance for the retirement village, and insurance for which the resident is responsible
• any conditions on living in the village that the resident needs to be aware of and agree to
• the resident’s right to resell their right to reside in the unit
• the resident’s entitlement to audited and unaudited financial statements for the village
• the dispute resolution process
• the operator’s and resident’s rights to terminate the contract
• the funds the scheme operator is required to keep
• the retirement village facilities and land
• whether the operator and resident are to share in any capital gain or loss, and how it is to be shared
• any other matters prescribed by regulation.

The Retirement Villages Regulation 2018 may prescribe a term that must be included in a residence contract (a required term) or that must not be included in a residence contract (a prohibited term).

Penalties apply to operators who enter into residence contracts that are not in the approved form, do not include required terms or include prohibited terms.

PRECONTRACTUAL DISCLOSURE

The scheme operator must provide a VCD and PCD to a prospective resident at least 21 days before entering into a residence contract. You may choose to waive your disclosure time by filling out a Precontractual Disclosure Waiver (Form 5) (PDF, 186KB). You can only waive the precontractual disclosure period if you have received legal advice from a Queensland Lawyer.