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Consumer NZ has reviewed the contracts offered by six major companies including Bupa, Ryman Healthcare and Summerset.
Chief executive Jon Duffy said retirement villages promised the good life in your golden years, but the review showed the agreements people must sign unfairly favoured the village.
Duffy said a major concern were contract terms that made residents responsible for the costs of electrical or plumbing repairs even though they had no ownership rights to their unit.
Many also faced significant financial losses when their unit was sold because they did not get any capital gains, despite paying towards the property s upkeep.
Retirement village regulations need overhaul: Consumer NZ
1 Feb, 2021 06:15 PM
5 minutes to read
Consumer NZ wants an overhaul of the multi-billion dollar retirement village sector and its regulations to protect around 45,000 residents from unfair terms.
Jon Duffy, chief executive at Consumer NZ, said a review of contracts found terms which unfairly favoured villages and risked costing residents money. Retirement villages promise the good life in your golden years. However, the agreements consumers must sign before they move into a village can have a nasty financial sting. Some also risk breaching consumer law, Duffy said.
Terms which made residents responsible for the costs of maintaining and repairing items in their unit - even though they didn t own them - were one worry.