No, it’s not always necessary to have a solicitor act for you when entering into a Retirement Village (RV). However there are some reasons why having a solicitor act for you is highly advisable:
- Often you might be selling your home, your most valuable asset, at the same time as signing into a retirement village. You might wish the RV contract to be subject to the sale of your home or at least need to arrange coordination between between the sale and the purchase in relation to the flow of funds.
- Entering into a retirement village will often have the effect of substantially reducing your asset base. There are ongoing costs in operating a retirement village. Retirement villages, even those operating on a not-for-profit basis, must recover their costs and maintain a sustainable business. Often there is a fee at exit which takes a percentage of the incoming price you pay. This can be up to 30% or more. Sometimes you won’t receive any ‘capital gain’. You should understand that some RV operators will cost you (and your estate) more over the long run than others. A solicitor should understand the effect the RV contract will have on your asset base and your estate. It might make you decide to choose one RV over another.