Is your retirement village up for sale? Here’s what you need to know.
Retirement villages are like any other form of real estate – they can be bought and sold. Owners of retirement villages are almost equally split between corporations (incl family businesses and private owners/investors) and not-for-profit organisations including religious groups. Circumstances change, and the owners may seek to sell the retirement village in which you live.
Can they terminate my lease?
No. Your lease or licence is a legally-binding agreement that cannot be terminated simply because a new owner steps in and wants vacant possession.
The new owner acquires the retirement village with all of the leases or licences in place, and assumes all of the obligations attaching to the owner through that lease. There is no need to cut a new lease or licence with all the residents. If they offer you a new lease or licence, make sure you understand the changed conditions and get good legal advice before you sign anything.
Upsides and downsides
It may not be a bad thing when your village sells. You may be losing a disinterested owner and getting a motivated specialist retirement village operator – happy days! They will be keen to invest money into the village and may renovate the community facilities or even build some new ones.
The reality is there is likely to be little disruption or impact to residents in the village when it sells.
Probably the only downside is that unit resales may slow down as potential residents feel uncertain about the sale of the village. This can be exacerbated if the sale process drags on for an extended period.
The last word
Your tenure is safe. They can’t terminate your lease or licence. Go back to watching TV.