Think before you sign

A new discussion paper aims to help prospective and incoming retirement village residents to be better informed during their stay at a village.

Victorian Consumer Affairs Minister, Michael O’Brien, last week released the paper about the information disclosed in retirement village contracts.

The paper seeks feedback on issues including the information which should be provided to prospective residents such as contract content and condition reports. It aims to prove the regulations related to retirement villages and create “greater consistency and transparency”, which is central to residents’ rights.

Consumer Affairs Victoria recommends prospective residents seek legal advice before signing a contract.

“While retirement villages have their own dispute resolution process, residents contact Consumer Affairs Victoria to help negotiate a resolution when matters can’t be resolved,” Mr O’Brien explains.

“Most of these matters could have been avoided had the resident better understood the contract they were signing and the contract was in Plain English,” he adds.

While Mr O’Brien maintains the government is intent on ensuring seniors are “better informed” before moving into a retirement village, he says it is “absolutely vital” these potential residents receive the information they need.

“[It needs to be] up-front, in an easy-to-understand format,” he urges.

Council on the Ageing (COTA) Victoria chief executive, Sue Hendy tells DPS News the Residents of Retirement Villages Victoria Association, a group that advocates the needs of residents, is a “good information source”.

“They are as concerned as we are about the complexity of contracts, which the Victorian government had said it would work to simplify,” Ms Hendy claims.

“Retirement Villages are run by companies wanting to make money, you are buying a service, and there are fees as you go in, along the way, and as you go out.

“The contracts form the basis of this service and fee relationship, but most of the contracts are so complex that most of us cannot afford a lawyer to look at them, and most will advise you such,” she says.

Ms Hendy agrees with Mr O’Brien, saying “people do need to be ‘buyer beware’ as the moment you ‘sign’, you are financially committed and it can be costly to change your mind”.

“People need to consider the possibility of their needs changing and the ‘what ifs’. Most people only think about going in and [not leaving]. This is not always the case,” she says.

The discussion paper can be downloaded from the Consumer Affairs Victoria website and submissions close on Monday, 19 December 2011. A stakeholder forum will be held in early February next year.

Do you believe retirement village residents should be better informed about the documents they sign before they enter a village? Share your thoughts by commenting in the box below.