Why You Should Always Get Legal Advice Before Buying into a Retirement Village in Victoria

For many Victorians, moving into a retirement village is a big step and a new chapter in your life. However, what is often unknown is the legal complexity behind buying into a retirement village.

At Wollerman Shacklock Lawyers, we regularly advise clients who are surprised to learn that buying into a retirement village is not the same as purchasing a traditional home. Without proper legal advice, you may be exposing yourself to significant financial and legal risks.

Retirement Village Contracts Are Not Straightforward

Unlike a standard property purchase, buying into a retirement village can involve a combination of legal agreements. Depending on the structure, you may be acquiring a strata title, entering into a lease-like agreement, or securing a licence to occupy. This means that you may not actually be purchasing a property title that you own and control.

Every retirement village will be different, and the various options carry different legal rights and obligations. Understanding exactly what you are signing is critical and not always clear from the documentation provided.

The Fine Print Can Have Long-Term Financial Impacts

Retirement village contracts often include detailed provisions relating to:

• Ongoing maintenance and service fees;
• Use of communal facilities;
• Responsibilities for repairs and upkeep;
• Conditions and fees around leaving the village.

The contractual agreements are normally prepared by the retirement village and can a lot of the time be heavily geared in their favour. A careful review of the contracts by a legal property specialist ensures that you understand exactly what you are buying and that your interests are properly protected, reducing the risk to you.

Exit Fees and Ongoing Costs

One of the most important and commonly misunderstood features of retirement village living is the cost of exiting or selling.

Many agreements include deferred management fees or exit fees, which can significantly reduce the amount you receive when you sell or leave. The way in which these fees are calculated can differ between retirements villages. In addition to these costs, you may also be responsible for:

• Refurbishment or reinstatement costs;.
• Marketing and resale expenses;
• Ongoing fees after vacating the property;

Understanding the exact amounts of your initial up-front costs, on-going fees and exit fees, before you sign any contracts is essential to you making an informed decision so you know exactly what it is you are purchasing.

Control Over Your Property May Be Limited

In some retirement village agreements, you may not have full control over your unit. The retirement village may:

• Control or handle the resale process, meaning you may not get a say as to how it is sold or how much it will sell for;
• Impose restrictions on buyers; or
• Require approval for modifications.

These limitations can affect both your flexibility and financial outcome. It is important to understand these limitations before you sign, as whilst some of these conditions may not impact you straight away, they may be things that need careful consideration for down the track.

Upcoming Changes to Law regarding Retirement Villages

Retirement Villages in Victoria are governed by specific legislation designed to protect residents. Importantly, further reforms are due to commence in May 2026, introducing additional consumer protections.

While these changes will benefit purchasers it is still crucial to obtain professional legal advice on all aspects of the contracts and agreements to ensure you understand how the law applies to your particular contract or agreement.

Why Legal Advice Matters

By seeking legal advice before you sign any contract or agreement, you can ensure that you:

• Fully understand your contractual obligations;
• Understand what exactly it is that you are buying;
• Identify hidden costs and risks that you may not foresee;
• Ensure you are aware of your rights;
• Make a confident and informed decision

At Wollerman Shacklock Lawyers, we take the time to explain these agreements in plain English, so you can move forward with certainty. With Trish, one of very few Accredited Property Law Specialists in Victoria providing you with the advice, it means that you can be sure you are given advice on the most crucial aspects of your purchase so that you know exactly what it is you are buying, with no hidden surprises. Our experienced team will review your contract, explain your options, and help you avoid costly mistakes. If you need assistance, contact our friendly team today.