New ruling on market value of retirement village units
The New South Wales Supreme Court has overturned a Tribunal ruling on ‘market value of the unit’, according to a report in the Village Manager of 29 May.
Bondi Beach Astra Retirement Village had the right to assume ownership of a unit at a specified price that was lower than the market value of the unit if the deceased estate did not exercise an option on a specified date.
The Tribunal agreed with the village operator, but the Supreme Court overturned that ruling, stating the true market value of the unit should be paid by Bondi Beach Astra.
This will have implications for other operators who wish to assume independent living units for renovation; they may have to justify the fair market value and what they offer the resident or their estate.
