As part of the Queensland Government’s changes to the Retirement Villages Act 1999 (Qld) in February 2019, the Public Information Document (PID) has been replaced by a new Village Comparison Document and Prospective Costs Document to make it easier for prospective residents to compare villages and know the costs of entering, living in and leaving a village.
What is a Prospective Costs Document?
The Prospective Costs Document (‘PCD’) provides a resident with information about a specific unit in a retirement village. The PCD contains details about the costs of entering the retirement village and the current ongoing costs. It is required to provide an understanding of the financial commitment involved in entering, living in, and explain the costs you will pay when you leave the unit after 1, 2 and 5 years of residence.
What information must it provide?
The Retirement Villages Act 1999 (Qld) prescribes a single form for the PCD(1). Specifically, a PCD includes information about:
- the scheme operator;
- your ingoing contribution;
- ongoing costs;
- the layout of the unit, fixtures, fittings and furnishings; and
- exit costs when you leave the village.
More information on what is to be contained in a PCD can be found in Schedule 3 of the Retirement Villages Regulation 2018 (Qld).
When must a PCD be provided?
A scheme operator of a retirement village is required to provide a PCD either within 7 days of receiving a request to do so or at least 21 days prior to entering into a residence contract with a prospective resident(2). The resident may waive the 21-day period if professional legal advice is obtained regarding the PCD.
When must a PCD be updated?
If there are any changes in the PCD, the scheme operator must notify the resident at least 21 days prior to entering into a residence contract.
For more detail regarding Queensland Retirement Village legislation and Operator obligations, see our earlier INSIGHT article: Regulatory requirements for new Queensland Retirement Village Operators. If you are a scheme operator seeking to ensure your Prospective Costs Document is compliant, please do not hesitate to contact the expert RV team at Property & Legal.
1 Retirement Villages Act 1999 (Qld) s 75(2).
2 Retirement Villages Act 1999 (Qld) s 75(3); s 84(5)(a).