When you start researching retirement villages you will find there is a whole new language to learn!
Here are some definitions for some of the key terms to get you started:
| TERM | DEFINITION |
| Accreditation | Some retirement villages are accredited by the retirement village industry associations. Accreditation is independently assessed and is used by retirement village operators to show they comply with the accreditation guidelines. |
| Aged care | Aged care refers to care and accommodation provided for older people under the Commonwealth Aged Care Act. Users of Government-funded aged care services or accommodation require an Aged Care Assessment (ACAT) to qualify. Different to retirement villages and over-50’s communities. |
| Ageing Australia | One of two industry organisations for the owners and operators of retirement villages. Most popular with the not-for-profit sector or those providing aged care and home care services. |
| Body Corporate | The owning entity for a strata freehold village in Queensland. Owners of accommodation units in the complex are members of the body corporate and may nominate as body corporate committee members. |
| Body Corporate fees | Quarterly fees charged to owners in the body corporate to fund the administration, operation and maintenance of the complex. Comprises an Administration fee and a Sinking Fund fee. |
| Cash buyer | Retirement village sales agents are likely to give preference to “cash buyers”, or those buyers that can settle a purchase without needing to sell their home. |
| Consumer Price Index (CPI) | A basket of goods priced on a regular basis to assess growth in prices (inflation). Represented as a % and used as a benchmark in the retirement village industry for increasing village fees. |
| Contract | The document signed when you buy a home in a retirement village. May also be called a Residence Contract or Residence Agreement. The contract “pack” includes any disclosure documents provided and village rules. |
| Disclosure Statement | A document that outlines key information about a retirement village and is required to be provided to the buyer in some states as part of the transaction. |
| Deferred Management Fee (DMF) | A fee applied during a retirement village resident’s tenure. It is accrued daily during the resident’s stay and paid after exit from the re-sale proceeds of the unit. The fee is a % of the purchase price or re-sale price of the unit. |
| Dispute | A disagreement between a retirement village resident and a village operator, usually around a differing interpretation of a term in the residence contract or retirement villages legislation. Dispute processes are outlined in a residence contract and the Retirement Villages Act. Disputes between residents are typically not covered in the residence contracts or the Retirement Villages Act. |
| Downsizing | The process of moving from an existing home to a property of smaller size or value. |
| Estimated Exit Entitlement | An estimate of the funds that will be returned to a former resident of a retirement village once the unit has been re-sold and all fees and charges have been deducted. |
| Exit Entitlement | The funds paid back to a former resident of a retirement village once the unit has been re-sold and all fees and charges have been deducted. |
| Exit Fee | See Deferred Management Fee. |
| Home care | Government-funded domestic and care services that are delivered in the home by an accredited home care provider. |
| Independent Living Unit (ILU) | The generic industry term for villas or apartments in retirement villages. Used to differentiate the accommodation offering from aged care and serviced apartments where higher levels of care and services are provided. |
| Lease | Residents typically occupy a retirement village unit under a lease contract. Leases are registered with the state titles office. |
| Licence | Licences are an occupation right typically used by not-for-profit retirement village operators. |
| Not-for-profit | A term used to describe retirement villages run by religious or community-minded operators, where any surplus income after the deduction of expenses is re-invested back into the organisation or used to fund the operation of non-income producing or mission-focused services. |
| Occupation Right or Right to Occupy | What a resident “buys” to occupy a retirement village unit. A Right to Occupy can be in the form of a lease or licence. |
| Off the plan | Buying a retirement village unit before it is built. |
| Owners Corporation | The owning entity for a strata freehold village in states other than Queensland, where it is known as a Body Corporate. Owners of accommodation units in the complex are members of the owners corporation and may nominate as committee members. |
| Private aged care | A model of accommodation for older people where (almost) aged care level services are provided to residents under retirement village legislation. A popular alternative to an aged care facility for many people, however it is prohibitively expensive. |
| Property Council of Australia (Retirement Living Council) | One of two industry organisations for the owners and operators of retirement villages. Most popular with property-focused companies and the for-profit sector. |
| Rental villages | Retirement villages that specialise in rental accommodation. |
| Resident Associations | Similar to labour unions, resident associations are lobby and advocacy groups for residents of retirement villages. |
| Residents Committee | A volunteer group of retirement village residents that represent the interests of residents to village management. |
| Retirement village | A community for older, retired people governed by the state or territory retirement villages legislation. Different to an over-50’s community. |
| Serviced Apartment | A retirement village unit offering domestic services (meals, cleaning, laundry) and possibly enhanced care. Usually features 24/7 staffing. |
| Termination | The ending of retirement village resident’s tenure – legally, the termination of the lease or licence under which the resident occupies the unit. Requires 30 days written notice. |
| Village Fee | The fee paid by all residents of retirement villages that covers the operation and administration of the village. The fee has different names in each state: § QLD – General Services Charges § NSW – Recurrent Charges § VIC – Maintenance Charges § SA – Recurrent Charges or Service Fees |
| Village operator | The operator of a retirement village. Usually the owner and operator of the retirement village are the same entity. May be a for-profit company or a not-for-profit religious or community group. |
| Village Rules | Otherwise known as by-laws. Village rules are written guidelines that govern how residents, visitors, and operators behave and interact within the village. They are designed to ensure a safe, respectful, and harmonious living environment for everyone and seek to balance individual freedom with community wellbeing. |
| Waiting list | A list maintained by a retirement village with the names and contact details of potential residents. |