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Signing On The Dotted Line

Signing On The Dotted Line

Last updated on: Apr 21, 2026

Signing On The Dotted Line. A Legal Perspective.
Adapted from “The Legal Process Before Signing an Occupation Right Agreement”
By Kristine King

 

There are a few certainties in life, aside from death and taxes… and spending time with a lawyer when entering a retirement village is one.

 

Whilst the cynical among us might think that lawyers are just looking for more opportunities to “clip the ticket”, in reality there are legal safeguards built into our legislation requiring the use of a lawyer before accepting an Occupation Rights Agreement (ORA).
The Retirement Villages Act 2003 (the Act) prohibits any person from being offered or accepting an offer to become a resident in a retirement village unless it is in accordance with an ORA. The ORA must meet specific requirements for form and content that are set out in the Act, the schedules of the Act and certain regulations made under the Act.
Before you can discuss your proposed move to a retirement village and the terms of any ORA with your lawyer, you will likely find that your lawyer will be using other acronyms like AML/CFT, CDD, EDD and so on. Lawyers are among several professions whose members are affected by changes to the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act).
For most prospective residents this process means that your lawyer will ask to sight and certify a current copy of your passport or driver’s licence and some evidence of proof of your current address. It can be very frustrating to deal with these numerous requests for the same information, but your lawyer must complete these verification processes even when they have acted for a client for a long period. Each lawyer or law firm faces prosecution and large financial penalties if they fail to follow the procedure mandated by the Department of Internal Affairs (DIA). 
Your lawyer will appreciate that the volume of information given to you by the village, for you to read and understand can be overwhelming and confusing, so they may try to assist by preparing a summary or a reporting letter for you. They will want to ensure that you fully understand the nature of the ORA and its implications before signing, so they can give the certificate required by the Act.
However, for them to best advise you on the implications of the ORA’s provisions on you, they will need some information on your own circumstances, expectations and requirements. This is essential so that the advice is tailored to you and to also ensure that the ORA contains legally enforceable terms that match the statements or representations made to you by the retirement village. Ideally you would have this discussion with your lawyer before they start reviewing the ORA and other materials. You are likely to be asked by the retirement village to also create a will and enduring powers of attorney or to update your existing documents. For some strange reason people do not normally relish the prospect of extra time in the company of their lawyer. As these are significant legal steps on your part it is recommended that you allow plenty of time to ensure all processes are undertaken properly. It’s a big financial decision that you’re making and you want the best advice.


This article is lifted from the New Zealand’s Best Magazine 2024 Edition. For more interesting senior related content, order the latest 2023 issue from www.agedadvisor.nz/Annual-Magazine 

 

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