# Retirement Village Rights, Complaints & Reform — Topic Map > **Purpose:** A practical guide to understanding Occupation Right Agreements (ORAs), your rights as a retirement village resident, where to get help if something goes wrong, and what reforms are currently proposed. > **Key contact:** Retirement Commissioner — 0800 268 269 | Statutory Supervisor (varies by village) --- ## 1. What Is an ORA? (Occupation Right Agreement) An ORA is the legal contract between you and the retirement village operator. It gives you the right to occupy a unit in the village but is **not** the same as owning the property. ### Key Things to Know | Aspect | What It Means | | ----------------------------------- | ------------------------------------------------------------------ | | **You buy the right to live there** | Not the property itself — you don't own the land or building | | **You pay an initial price** | Usually a lump sum (the "entry payment" or "capital contribution") | | **You pay weekly fees** | For services, maintenance, amenities | | **You sign a long-term contract** | Covers the entire period you live in the village | | **You may pay a DMF on departure** | Deferred Management Fee — deducted when you leave | | **Capital repayment delay** | You may wait months for your capital to be repaid after leaving | | **Legal advice is required** | You must get independent legal advice before signing | | **Cooling-off period** | You can cancel within 15 working days | --- ## 2. Rights of Residents ### Code of Residents' Rights Under the Retirement Villages Act 2003 and Code of Practice, every resident has the right to: - Be treated with respect and dignity - Live in a safe, secure environment - Have their privacy respected - Be fully informed about costs, fees, and village rules - Participate in decisions about village management - Access complaints and dispute resolution processes - Form a residents' committee - Receive a copy of the village's code of conduct ### Cooling-Off Period - **15 working days** after signing the ORA to cancel without penalty - Starts from the date you receive a copy of the signed ORA - If you cancel within this period, the village must refund your deposit (minus a small administration fee, typically capped) ### Legal Advice Requirement - You **must** get independent legal advice before signing an ORA - The lawyer must not be acting for the village operator - The lawyer must certify that they have explained the ORA's effects to you - This is a legal requirement under the Retirement Villages Act --- ## 3. Costs You Need to Understand | Cost Item | Typical Range | What It Covers | | ---------------------------------------- | ------------------------------ | ----------------------------------------------------------------------------------------------------------------------- | | **Entry payment / capital contribution** | $200,000 – $1,000,000+ | Price to secure the right to occupy | | **Weekly fees** | $100 – $600+/week | Services, rates, insurance, maintenance, amenities | | **Deferred Management Fee (DMF)** | 20–30% of entry price | Fee deducted from your capital on departure — usually reduces over time (e.g., 10% yr 1, 2.5%/yr for 5 years, then cap) | | **Capital repayment delay** | 3–12 months (sometimes longer) | Time between leaving village and receiving your capital back | | **Additional service charges** | Variable | Optional services (e.g., meals, cleaning, care packages) | ### DMF — What to Watch For - DMF is typically calculated as a percentage of the **original entry price** (or in some newer ORAs, a share of the resale price) - Most DMFs cap at 20–30% of the entry price after 5–8 years - Some newer ORAs have different structures — get legal advice to compare ### Capital Repayment Delays This is one of the most complained-about issues. When you leave (move to care, downsize, or pass away): - The village operator must sell the unit first - You (or your estate) only get paid once the unit is re-sold - This can take **3–12 months or longer** in slow markets - You still pay weekly fees until the unit is resold --- ## 4. If Something Goes Wrong: Complaint Pathway ``` START: You have a problem with the village or operator │ └─► 1. INFORMAL — Raise directly with village manager └─► Many issues resolved at this level │ └─► RESOLVED? ──► Stop │ NO ▼ └─► 2. STATUTORY SUPERVISOR ├─► Contact the village's statutory supervisor ├─► They are appointed to protect residents' interests ├─► They can investigate and mediate └─► Find contact on the village noticeboard or in your ORA │ └─► RESOLVED? ──► Stop │ NO ▼ └─► 3. RETIREMENT COMMISSIONER ├─► Free and independent ├─► Can investigate, mediate, and recommend ├─► Does not make binding decisions └─► Tel: 0800 268 269 │ └─► RESOLVED? ──► Stop │ NO ▼ └─► 4. DISPUTES PANEL ├─► Formal dispute resolution under the Retirement Villages Act ├─► Can make binding decisions ├─► Lower cost than court └─► Administered by the Retirement Commissioner │ └─► RESOLVED? ──► Stop │ NO ▼ └─► 5. REGISTRAR OF RETIREMENT VILLAGES ├─► Can investigate serious breaches of the Act ├─► Can prosecute operators for non-compliance └─► Part of Ministry of Housing and Urban Development │ └─► RESOLVED? ──► Stop │ NO ▼ └─► 6. DISTRICT COURT / HIGH COURT └─► Last resort — expensive and time-consuming ``` --- ## 5. Mediation Process The Retirement Commissioner offers **free, independent mediation** for disputes between residents and village operators. **What to expect:** 1. You contact the Retirement Commissioner (0800 268 269) 2. A mediation coordinator assesses your case 3. If suitable, a mediator is appointed 4. Mediation is confidential and without prejudice 5. Both parties must agree to participate 6. If successful, a written agreement is reached 7. If unsuccessful, you can escalate to the Disputes Panel or Court --- ## 6. Statutory Supervisor ### Role The statutory supervisor is an independent third party appointed to: - Monitor the village operator's compliance with the ORA and the Act - Protect residents' interests - Hold the residents' capital contributions in trust - Approve certain financial transactions - Report to residents on the village's financial position - Investigate and help resolve complaints ### How to Contact - The statutory supervisor's name and contact details must be displayed on the village noticeboard - Also listed in your ORA - Common supervisors include: Guardian Trust, Public Trust, Covenant Partners, Perpetual Guardian ### What They Can and Cannot Do | Can Do | Cannot Do | | -------------------------------------- | -------------------------------------- | | Investigate complaints | Make binding legal decisions | | Mediate between residents and operator | Override the ORA terms | | Require the operator to fix issues | Change the DMF or weekly fees | | Report breaches to the Registrar | Order the operator to pay compensation | | Protect the residents' trust funds | Evict the operator | --- ## 7. Current Reform Issues ### Retirement Villages Act Review The Retirement Villages Act 2003 is under review by MBIE / Ministry of Housing and Urban Development. Key issues being considered: | Issue | Current Position | Proposed Change | | ----------------------------- | ---------------------------------------- | ----------------------------------------- | | **DMF/capital loss** | Residents can lose 20–30% of entry price | Cap on deductions, more equitable sharing | | **Capital repayment timing** | No legal time limit on repayment | Maximum repayment period (e.g., 6 months) | | **Weekly fees during resale** | Residents pay fees until unit resold | Limit on post-departure fees | | **Disclosure** | Incomplete cost information upfront | Mandatory standard disclosure statement | | **Resident input** | Limited rights in village decisions | Stronger resident committee powers | ### Consumer NZ Campaign: Top 10 Fixes Consumer NZ has advocated for these key changes: 1. Limit capital losses from DMFs 2. Require timely repayment of capital 3. Stop residents paying fees after they leave 4. Better disclosure of all costs upfront 5. Independent valuation rights for residents 6. End "no-cause" terminations by operators 7. Allow residents to sell their own unit 8. Stronger enforcement powers for the Registrar 9. Mandatory cooling-off period extended 10. Requirement for a residents' representative on village governance ### Existing vs New ORAs | Feature | Existing ORAs (pre-reform) | New ORAs (some operators) | | ------------------------- | -------------------------- | ------------------------------------------ | | DMF calculation | % of entry price | Sometimes % of resale price (risk-sharing) | | Capital repayment | No legal time limit | Some operators offering 6-month guarantee | | Weekly fees during resale | Charged until resold | Some waive after 3–6 months | | Buy-back guarantee | Rare | Some operators now offering | --- ## 8. Pre-Move Checklist Before signing an ORA, work through this: - [ ] Get **independent legal advice** (required by law) - [ ] Read the full ORA carefully — not just the summary - [ ] Understand the **DMF** — how it's calculated, when it caps - [ ] Ask about **capital repayment** timeframes - [ ] Get weekly fees in writing, including forecast increases - [ ] Ask about **additional charges** (care packages, meals, etc.) - [ ] Read the village's **Code of Practice** - [ ] Check the village's **latest audit report** (if care is provided) - [ ] Talk to current residents (ask about hidden costs, management responsiveness) - [ ] Check the **statutory supervisor's** name and contact - [ ] Review the **residents' committee** minutes if available - [ ] Compare 2–3 village ORAs side-by-side with legal advice - [ ] Consider: what happens if I need to leave for **residential care**? - [ ] Consider: what happens if I need to sell due to **health changes**? --- ## 9. Cross-Links to Captures in This Folder | File | Relevance | | -------------------------------------------------------------------------- | -------------------------------------- | | `2003 - NZ Legislation - Retirement Villages Act (current).pdf` | The governing legislation | | `2008 - Retirement Commission - RV Code of Practice (2017 variations).pdf` | Code of Practice requirements | | `2020 - CFFC - RV Legislative Framework Whitepaper.pdf` | Analysis of legislative framework | | `2023 - RVR - Submission on RV Act Review.pdf` | Resident views on reform | | `2023 - Consumer NZ - Retirement Villages Act Review Submission.pdf` | Consumer NZ reform proposals | | `2022 - RV Residents - Unfair Terms in ORAs.pdf` | Specific issues with ORA terms | | `2024 - MBIE - RIS RV Act Review Insurance Issues.pdf` | Government regulatory impact statement | | `2020 - Retirement Commission - Retirement Village Living Guide.pdf` | Full guide to village living | **Also see:** - `../13_Consumer_Guides/2026 - Consumer NZ - Web Capture - How to Choose a Retirement Village.md` — practical selection guide - `../05_Funding_and_Subsidies/2026 - Older Person Financial Support Map.md` — how RCS interacts with village costs - `../02_Aged_Residential_Care/` — if transitioning to residential care from a village