Consumer NZ - Web Capture - RV Act Review Update

Consumer NZ's most significant concern — described as 'gut-wrenching' — is that the Government's proposed changes do not apply to existing Occupation Right Agreements (ORAs). > Consumer NZ's position: 'If the law is unfair, it should be fixed for everyone — not just for people who sign up after the changes take effect.' - An estimated 40,000+ New Zealanders currently living in retirement villages - Many signed ORAs with terms that Consumer NZ considers unfair - These residents will continue to face: - Long capital repayment timeframes (6–12+ months after vacating) - High DMFs that may not reflect actual costs - Limited ability to challenge unfair terms - Operators are not required to update existing agreements Consumer NZ argues that: 1. Many residents signed ORAs when they were less informed or under pressure 2. The power imbalance between residents and operators is significant 3. Operators have had years of benefit from unfair terms 4. It is unjust to create a two-tier system > Note: The timeline may shift based on the parliamentary calendar and government priorities. Consumer NZ has called on the Government to: 1. Apply all changes to existing ORAs — grandfathering is unfair 2. Mandatory capital repayment within 20 working days for all villages 3. Cap DMFs and require them to reflect actual costs 4. Mandatory plain language disclosure for all agreements 5. Establish a Retirement Villages Ombudsman for independent dispute