Home' Australian Ageing Agenda : AAA Mar-Apl 2014 Contents 214
2014 ACSA NATIONAL CONFERENCE
SAVE THE DATE
ADELAIDE CONVENTION CENTRE
7TH --10TH SEPTEMBER 2014
COMING OF AGE
R EDEFINING AG E ING
This year the ACSA National Conference in Adelaide is designed for us all to
redefine the experience of ageing in our communities questioning everything
about delivery of services, community integration and what else is possible.
Early Bird Registration Opens 1st May 2014
Exhibition & Sponsorship Prospectus is
now available to download from the conference website.
All management agreements, village
contracts and service agreements should
be reviewed and legal advice obtained.
PHYSICAL DUE DILIGENCE
A purchaser should undertake a thorough
inspection of the condition of the
retirement village. It is important to find
out whether there are any issues with the
structure of buildings or any problems
with any major plant and equipment. Also,
a survey report should be obtained and
environmental investigations undertaken.
A purchaser may also want to ensure
that services are compliant with legislative
If the village is in need of refurbishment,
consideration should be given to the
practical, contractual and legislative
requirements to enable the refurbishment
to take place. Also, consideration should be
given as to what upgrades may be required
to services, plant and equipment as a result
of any refurbishment (including fire safety
and energy efficiency issues). Other issues
to consider include whether there is a
sinking fund provision for refurbishment or
replacement of village assets and whether
the cost of the refurbishment is to be paid
by the operator, the resident or both.
A purchaser may wish to undertake an
A further consideration may be what
expansion opportunities are available.
In particular, whether there is enough
land available for expansion and whether
there are any planning constraints. This is
important if the purchaser is acquiring the
village with a view to expanding it.
A purchaser should make enquiries about
what warranties apply to the buildings,
services and plant and equipment in the
retirement village and ensure that they can
be assigned to the purchaser, if necessary.
A purchaser should consider the
insurance requirements under the
relevant retirement village legislation and
obtain advice from an insurance advisor.
The purchaser should consider the
employees currently employed in
the retirement village and employee
entitlements should be taken into account
in the costs of the village.
A purchaser should ask the operator to
provide details of:
1. any disputes and current litigation in
respect of the retirement village;
2. the operations and activities of any
residents' committee; and
3. complaints from residents and the
This will highlight any issues or
grievances within the village.
It is not compulsory for a retirement
village to have accreditation but it is more
attractive to residents and highlights
that industry standards are being met.
A purchaser should consider what
accreditation the village has and whether
it will carry over after completion.
OTHER ISSUES FOR NEW
When setting up a new retirement village,
consideration should be given to council,
planning and development requirements
including any zoning issues. It is important
to ascertain and consider any restrictions
or impediments that may apply.
It is recommended that legal advice
also be obtained in respect of the
development and construction contracts.
Any requirements as well as retirement
village legislative requirements should
be considered in the preparation of
the residence contracts and required
disclosure information. Also, consideration
should be given as to what service
agreements need to be put into place.
Finally, the issues highlighted are
just some of the matters that should
be investigated. The sale agreement
should take account of the outcome
of all due diligence investigations. It is
recommended that specialist legal and
financial advice be obtained. n
Lisa Bielby is a partner with
Lynch Meyer Lawyers.
www.australianageingagenda.com.au | 29
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