Due to an aging population, Retirement Villages are becoming a popular living option for the elderly. New Retirement Villages are popping up everywhere, and with this increase it is important that potential purchasers are aware of what an Occupation Right Agreement (an “ORA”) is, and what is involved when purchasing at a Retirement Village.
An ORA is a contract you enter into when you purchase a Villa, Townhouse, Unit or Serviced Apartment at a Retirement Village. Rather than purchasing the Property itself, you are instead purchasing the ‘Right to Occupy’. This Right to Occupy allows you to occupy the Property and live there for your life subject to conditions of the Agreement.
When purchasing at a Retirement Village, you do not own the underlying Title for the Property itself, you instead own the right to live there.
An ORA is different to a Property Title in that you cannot:-
You however receive the benefit of living there for your life and not having to worry about Property maintenance.
The first step is to sign an Application for the property through your chosen Retirement Village. The Village will then send the ORA and associated documents through to your solicitor. Your solicitor will meet with you to provide the required legal advice and explain the ORA. The signed ORA is then sent back to the Village and held until your chosen settlement date when the purchase price is paid and you move in. A copy of the fully signed ORA will then be provided to you.
The ORA sets out terms of your purchase including: –
Generally, the costs involved are:-
You are not responsible for payment of rates or Property insurance. You will be responsible for contents insurance, and utilities such as electricity and internet.
If you are considering purchasing at a Retirement Village, please get in touch with us and we can assist you with providing thorough advice and ensuring a smooth, stress-free purchase.