Retirement Living

A guide to contracts, fees and charges

Retirement Contracts

Under the Retirement Villages Act 1999, there are several types of contracts residents can enter into, these include;

  • Leasehold arrangement (registered/non-registered interest holder)
  • Loan or Licence arrangement (non-registered interest holder)
  • Strata or community schemes (registered interest holder)
  • Company title schemes (registered interest holder)
  • Rentals (renting)


Loan or Licence arrangement

All RFBI Retirement Village contracts are ‘Licence Agreements – non-registered interest holder’.  A ‘Non-registered Licence Agreement’ essentially allows you to stay in the Retirement Village for as long as you like, but you do not own the unit or have a registered interest in it.

There are many benefits of a License Agreement:

  • Clear and transparent contract outlining the fees payable
  • No stamp duty payment or registration fees
  • All capital items in a village are maintained by RFBI
  • No selling fee or commission payable
  • No refurbishment fees at departure (to renew the unit for the next buyer)

Retirement Living Fees and Charges

There are two key costs associated with a Loan Licence Agreement:

  • The Ingoing Contribution, also known as the unit sale price or entry payment, is the price you pay to live in one of our retirement village units. The price of a retirement unit is determined at time of sale and is unique for each unit based on where it is located, size of the unit and other factors.

The ingoing contribution amount will be refunded to you when you depart the Village, less the deferred management fee (DMF) payable.

  • The Recurrent Charges is the fee you pay to cover the costs of operating the village such as council and water rates, building insurance, maintenance both inside and outside your home, gardening and upkeep of any shared facilities. This charge occurs once you have signed a ‘Non-Registered Loan Licence Agreement’ and move into one of our units.

Recurrent charges are set each year as part of the annual budget process and are billed fortnightly.

Recurrent charges do not cover your personal expenses associated with living in the unit such as electricity, gas, phone and WiFi. These need to be arranged and paid directly to the supplier/provider.


Flexible Contract Arrangements

One of the most important decisions you will need to make when looking for your retirement home, is what sort of contractual arrangement you want to enter into and what flexibility is offered so that you can structure your contract to best meet your financial situation.

At RFBI, we understand that everyone’s financial circumstances are different, so we have introduced Flexible Contracts, allowing you to choose how much you pay as an ingoing contribution so that you can make the most of your retirement.

  • Standard option

The standard option will guarantee you receive at least 70% return of your ingoing contribution back if you stay 7 years or more. The remaining 30% will be deducted as a *Deferred Management Fee.

  • OPTION 1: Reduced Ingoing Contribution

With our flexible contract arrangements, you can choose to pay a lower ingoing contribution amount and higher deferred management fee (DMF) when you depart. You can choose to pay as little as 40% of the advertised unit price as your reduced ingoing contribution. Our team will work with you to show you what different ingoing contribution amounts mean to your deferred management fee.

  • OPTION 2: Increased Ingoing Contribution

With our flexible contract arrangements, you can choose to pay a higher ingoing contribution amount when you enter the village and be charged a smaller deferred management fee when you depart.  There is no upper limit on how much you can pay above the advertised price of a unit.

EXAMPLE: Adjusting the ingoing contribution (entry payment) to meet your circumstances

Once you know how much you would like to pay as your ingoing contribution, our team will advise you of the correlating deferred management fee and the amount that would be refunded to you on your departure.

Flexible Contract Arrangements

NOTE: This example is for illustrative purposes only. Deferred Management Fee (DMF) applied is a sliding scale dependent on the amount of ingoing contribution paid.

Other fees and charges

Waitlist Fee

The Waitlist Fee is a fee you pay as an interested prospective resident to go on a waitlist to enter one of our Villages. By joining a Retirement Village waitlist, you are guaranteed to be advised when a unit becomes available and will have the option to purchase the unit before it is offered to the wider market.

Available units are offered to people on the waitlist in order of when they joined the waitlist. If you decline to purchase a unit when it becomes available it will be offered to the next person on the waitlist, or the wider market if no one on the waitlist is ready to purchase the unit.

The waitlist fee is fully refundable if you decide not to be a resident. Simply advise in writing that you wish to be removed from the waitlist and we will refund your waitlist fee within 14 days.

If you purchase a retirement unit and are on the waitlist, the waitlist fee will be deducted from the amount owing as ingoing contribution.

RFBI’s wait list fee is $200.


Holding Deposit

If you are interested in an RFBI retirement unit but are unable to purchase the unit immediately, you are able to ‘hold’ the unit by paying a holding deposit. By paying a holding deposit you are committing to purchasing the unit and we will take the unit off the market for up to 3 months.

The holding deposit paid will be deducted from the ingoing contribution owed.

The holding deposit will be fully refunded if you decide not to proceed with the purchase of the unit. To have your holding deposit refunded, you need to notify us in writing that you no longer wish to proceed with the purchase of the unit and we will refund the holding deposit within 14 days.


*Deferred Management Fee (DMF)

The Deferred Management Fee (DMF) is a fee you pay when you depart the Village.  It is calculated as a percentage of the Ingoing Contribution payment and is deducted from the ingoing contribution amount you paid on entry into the village with the remainder refunded to you.

Deferred Management Fees accrue throughout your time living in the village.

RFBI’s standard DMF Fee is charged at 30% of the Ingoing Contribution and is payable as follows:

Time                                            Percentage

Years 1 to 2 (inclusive)             10% per year

Years 3 to 7 (inclusive)             2% per year

Years 8 and beyond                  0% per year


Complaints Handling Policy

To view RFBI’s Comment, Complaint and Internal Resolution Process, please click here.