Occupation right agreements: what you are signing

What an ORA is

An occupation right agreement, or ORA, is the contract that gives you the right to live in a unit in a retirement village. It sets out what you pay to move in, what you pay while you live there, and what you get back when you leave. Ask your lawyer exactly what kind of right yours gives you, and whether you own anything.

ORAs are covered by the Retirement Villages Act 2003. The Act gives you important protections, but the money terms come from each contract, so they can differ a lot from one village to the next.

Before you sign

Before any ORA can be entered into, the operator must make sure you have received:

• a disclosure statement (see our guide to disclosure statements)
• the Code of Residents' Rights
• the code of practice, which sets out rules that village operators must follow
• a copy of the ORA itself.

You must get independent legal advice before you sign. Your signature must be witnessed by a lawyer. The Ministry responsible for the Act also strongly encourages you to get financial advice.

The money terms

These amounts come from each village's contract, and we have not quoted typical figures here. What follows is general guidance on what to ask. Ask each village to show you, in writing, how each term works.

Exit fees. Many ORAs take a deduction from the money you get back when you leave. This is often called a deferred management fee. Ask how it is worked out, whether it builds up over time, and the most it can reach.

Weekly fees. These pay for running the village. Ask what they cover, whether they are fixed or can rise, and whether you keep paying them after you move out.

Capital gains and losses. Ask whether you share in any rise in the unit's value when it passes to the next resident, and whether you carry any fall in value.

Refunds. Ask when you will be repaid after you leave, whether repayment waits until the next resident takes your unit, and whether any interest is paid while you wait.

The cooling-off period

You can cancel an ORA, without giving any reason, by giving notice within 15 working days of signing it. If you cancel, you are entitled, on request, to a refund of your deposit and all progress payments, with interest and with no deductions other than tax. Progress payments are payments you make before you are able to move in, for example in stages while a unit is being built. The refund must be paid within 10 working days of your request.

Your rights while you live there

Code of Residents' Rights. This summarises the basic rights the Act gives every resident.

A statutory supervisor. Each village must have a statutory supervisor, unless it has an exemption. This is an independent party licensed by the Financial Markets Authority. Its duties include holding residents' deposits and progress payments, monitoring the village's finances, and reporting each year to the Registrar of Retirement Villages and to residents. The Registrar is the official who keeps the Retirement Villages Register at the Companies Office.

Complaints. Every operator must run a complaints facility. Under the Code of Practice, if a formal complaint is not resolved within 20 working days, the operator may refer it to the statutory supervisor. If it is still unresolved after a further 20 working days, the operator must offer mediation. You can take a dispute to a disputes panel, an independent panel appointed to decide the dispute, but only after you have used the complaints facility and 20 working days have passed. Check the timeframe for giving a dispute notice with the statutory supervisor or a lawyer.

The register. Registered villages are listed on the Retirement Villages Register, kept by the Companies Office. You can check a village there.

Changes announced, but not yet law

The Government began reviewing the Act in 2023. As at 18 September 2026, it had announced these changes, with a bill to be introduced in the next Parliamentary term:

• a maximum of 9 months to repay a former resident, cut from the 12 months first proposed
• a first repayment of 10 percent to residents who leave their unit to live elsewhere, replacing interest payments from 6 months
• weekly fees to stop, and fixed deductions such as the exit fee to stop growing, when a resident moves out
• residents not liable for capital losses unless they benefit from capital gains
• operators responsible for the chattels and fixtures they own, meaning items in your unit that belong to the village
• a new independent disputes scheme, paid for by operators.

The Government has said the changes to weekly fees and capital losses would also apply to existing ORAs. Ask your lawyer which other changes would apply to you. None of this is law yet, so the terms of your contract still apply today.

Questions to ask

• How is the exit fee worked out, and what is the most it can be?
• Can the weekly fee rise, and does it stop when I move out?
• Do I share in capital gains? Could I be liable for a capital loss?
• How long after I leave will I be repaid, and is interest paid while I wait?
• Who repairs and replaces the appliances and fittings in my unit?
• Who is the statutory supervisor?
• If my health changes, what care can I get here?