Understanding the ‘purchase’ process
Occupation Right Agreement, Licence to Occupy, Outgoings Charge… Sometimes when it comes to moving to a retirement village the legal terms can make it seem very confusing, but really it’s not. However, it is different to buying a house.
Occupation Right Agreement, Licence to Occupy, Outgoings Charge… Sometimes when it comes to moving to a retirement village the legal terms can make it seem very confusing, but really it’s not.
When you ‘purchase’ an Enliven village or apartment you sign an Occupation Right Agreement (ORA) and make an Entry Payment. By signing the ORA you have an exclusive licence to occupy (LTO) the villa for as long as you are able, and shared rights to use the communal facilities. The underlying ownership of the villa remains with Presbyterian Support Central.
The process looks something like this:
Step 1: Consider the options
Think about the things that are important to you in a retirement village and feel confident in your decision to move to an Enliven village.
Step 2: Understand how it works
Get a good understanding of how the licence to occupy system works. We’re always happy to answer your questions about the agreement, the fees and what you can expect if you move out.
Step 3: Sign an application form
The application form is essentially your expression of interest in a villa. This form gathers all the information we need to put together the Occupation Right Agreement.
Step 4: Meet the Village Manager
Get a medical assessment and meet with the Village Manager to discuss if your preferred Enliven village is the right fit for you.
Step 5: Seek legal advice and sign the Occupation Right Agreement (ORA)
We will send the ORA to your lawyer so you can get legal advice about the details and conditions included in the agreement.
Step 6: Final arrangements
We’ll happily provide advice to help you with the process of selling your home and moving to your new Enliven home.
Step 7: Move in!
The entry payment is the price you pay for the licence to occupy your apartment for as long as you wish. Enliven’s village agents will be able to supply the most up-to-date pricing information.
Residents of retirement villages and apartments pay a monthly fee (called an Outgoings Charge). This covers things such as rates, water, security, property maintenance and gardening, building insurance, village management, smoke alarms, rubbish removal and other operating costs.
At Enliven, we guarantee that the monthly fee will never increase by more than the percentage increase in the National Superannuation rate.
The village agents will provide you the current outgoings charges.
When you leave your Enliven villa or apartment and a new resident is ready to move in, we give you back your Entry Payment (the price you paid for your villa/apartment) less a certain percentage depending on how long you have lived in your villa. That percentage is called the Village Contribution.
This village contribution covers the cost of refurbishing your villa and advertising it for sale. This means you and your family don’t have the stress and hassle.
At Enliven, we promise the village contribution will never be more than 25 per cent of your Entry Payment, regardless of how many years you have lived there.
The Village Contribution is calculated as follows:
- five per cent of the Entry Payment on the commencement date of the Occupational Right Agreement, plus
- four per cent, per year for up to five years.