Retirement Villages

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Moving into a retirement village is a major financial and lifestyle decision — and the contract behind it is often long, dense, and different from anything you've signed before. At Kara Legal, we help prospective and current residents across Moonee Ponds, Essendon and Melbourne's inner north-west understand exactly what they're agreeing to, before they sign and if a dispute arises later.

This is an especially important time to get advice. Victoria's retirement village laws are changing under the Retirement Villages Amendment Act 2025, with new rules taking effect from May 2026 and a new mandatory standard contract required for every retirement village resident from September 2026. These changes are designed to make contracts simpler and residents' exit entitlements clearer — but until every village has transitioned across, residents and their families still need to understand which version of the contract applies to them, and what it means.

If you're considering a retirement village, we review the residence contract and the operator's Information Statement before you sign, explain the ingoing contribution, ongoing fees, and — critically — how much you'll get back when you eventually leave. We also explain your cooling-off rights, which the new laws extend.

If you're already living in a village, we can review your existing contract against the new legislation, advise on a fee or maintenance dispute, or help if you're planning to leave and want to understand your exit entitlement before you go.

For families, retirement village decisions often overlap with a parent's broader estate plan — we can review a village contract alongside a will or Power of Attorney so everything is considered together, not in isolation. If a resident passes away, we can also assist the estate with the exit entitlement claim.

Our retirement village services include:

• Pre-signing contract and Information Statement review.
• Exit entitlement and deferred management fee disputes.
• Advice on the transition to the new standard form contract.
• Cooling-off period advice.
• Fee increase and maintenance dispute advice.
• Coordinating retirement village decisions with your estate plan.

What's changing in Victoria's retirement village laws? The Retirement Villages Amendment Act 2025 introduces a new mandatory standard form contract, a simplified Information Statement, and stronger protections around exit entitlements. The changes take effect from 1 May 2026, with the new standard contract required for all residents from 1 September 2026.

What is an exit entitlement? It's the amount a resident (or their estate) receives back when they leave a retirement village, after any agreed deductions such as deferred management fees or refurbishment costs. This is often the single most disputed part of a retirement village contract, and one worth understanding in detail before you sign.

Is a retirement village the same as a land lease community? No — they're governed by different laws. Retirement villages fall under the Retirement Villages Act, while land lease (or lifestyle) communities, where you own your home but lease the land, are governed by the Residential Tenancies Act. The contracts and dispute processes are different, so it matters which one applies to you.

Do I need a lawyer to review a retirement village contract? It is strongly recommended. These contracts are long, often include fees and deductions that aren't obvious on a first read, and getting it reviewed before you sign is far easier than disputing an exit entitlement years later.

Can I get out of a retirement village contract after signing? You may have cooling-off rights depending on how recently you signed, and the new laws extend this protection. Outside the cooling-off period, exiting is still possible but is governed by the contract's terms — advice at that stage is just as important as before you sign