Reading a retirement village disclosure statement

What a disclosure statement is

A disclosure statement is a document a retirement village operator must give you before you sign an occupation right agreement (ORA), the contract that lets you live in the village. It must comply with Schedule 2 of the Retirement Villages Act 2003, which sets out what it has to contain.

As general guidance, think of it as the village's summary of the deal. The ORA is the binding contract. If the two seem to say different things, ask your lawyer which applies.

Your right to get it

Under section 30 of the Act, before any ORA can be entered into, the operator must make sure you have received:

• a disclosure statement that complies with Schedule 2
• the Code of Residents' Rights
• the code of practice, which sets out rules that village operators must follow
• a copy of the ORA.

This is a legal requirement, not a favour. You must also get independent legal advice before you sign, and a lawyer must witness your signature. Give your lawyer the disclosure statement and the ORA together.

After you sign, you still have 15 working days to cancel without giving a reason. See our guide to occupation right agreements.

What to look for

We have not reproduced Schedule 2 here. As general guidance, these are the questions a disclosure statement should help you answer. If it does not, ask the operator, and ask your lawyer.

• Who owns and runs the village?
• Who is the statutory supervisor? This is the independent, licensed party that holds residents' deposits and monitors the village's finances.
• What will I pay to move in, each week, and when I leave?
• What happens to my money when I leave, and when do I get it?
• What services and care are available, and which cost extra?
• Is the village on the Retirement Villages Register, kept by the Companies Office?

How to read the fees section

This section is general guidance. Fees are often where villages differ most, so work through them in the order your money moves.

1. Money in. How much do you pay for the right to live in the unit, and when is it due? Is any part of it non-refundable?

2. Weekly fees. What does the weekly fee cover? Is it fixed for as long as you live there, or can it rise? If it can rise, how is the increase decided, and how much notice will you get?

3. Deductions when you leave. How is the exit fee, often called a deferred management fee, worked out? Does it build up year by year, and what is the most it can reach? Is it based on the amount you paid, or on the unit's value when you leave?

4. Capital gains and losses. If the unit is worth more when it passes to the next resident, do you get a share? If it is worth less, do you carry any of the loss?

5. Other costs when you leave. Are there charges for refurbishing the unit, finding the next resident, or legal costs?

6. Timing. When will you be repaid? Does it depend on the unit being taken by a new resident? Do weekly fees keep running until then?

Write the answers down in your own words, one page per village, using the same headings. This makes villages easier to compare side by side, and gives your lawyer a clear list to check against the ORA.

Changes on the way

The Government has announced that weekly fees would stop, and fixed deductions such as the exit fee would stop growing, when a resident moves out, and that former residents would be repaid within a maximum of 9 months.

As at 18 September 2026, these changes were not law. A bill is expected in the next Parliamentary term. Even after a law passes, many changes may apply only to agreements signed later. Until then, and possibly after, the terms in your disclosure statement and ORA apply. Ask your lawyer.

Questions to ask

• Can I take the disclosure statement away to read with my family and my lawyer?
• Is there anything in the ORA that differs from the disclosure statement?
• Can you show me, with a worked example, what I would get back if I left after a few years?
• When were the weekly fees last increased, and by how much?
• Who is your statutory supervisor, and can I see their latest annual report?
• Who repairs and replaces the appliances and fittings in the unit?