Retirement village residents will soon be entitled to the original capital sum of their investment following situations such as the Canterbury earthquakes or other natural disaster.
Previously a retirement village operator could choose to deduct deferred maintenance charges from the original capital payment unless the Occupation Right Agreement had a higher requirement.
A variation will be made to the Retirement Villages Code of Practice 2008 meaning deferred maintenance charges will not be deducted from the original capital sum in a no-fault termination situation such as a significant earthquake.
The variation will come into effect from October 2013, although some retirement village operators may incorporate the variation before that date.
There’s more information about this on the Building and Housing Group’s section of the new Ministry of Business, Innovation & Employment’s website: www.dbh.govt.nz.
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