Purchasing a Retirement Village Unit on a Community Title

Community Title

Legal

In a community title Village the residents purchase the freehold in their particular property, owning both the land and structures on it, and receive a certificate of title. Apart from their particular property the rest of the village is "common property" and is owned by a body corporate or association, which in turn is owned by the residents (on a group basis) and as a result they have a right to enjoy the use of the common property.

Very few retirement units are now sold on a community title basis, reportedly less than 2%.

Financial: Entry and Exit

Residents purchase a freehold title, with the purchase price less any departure fees paid to the previous owner. Note that if you are purchasing a new unit then GST may be payable, and that GST could also be payable in relation to any departure fees - as they may be considered as part of the total price paid for the unit. You will normally have to pay stamp duty if your tenure is freehold, strata, community or company title.

We address Exit and Departures fees in much more detail elsewhere, and note that you will not see any funds returned to after vacating a unit until it is sold and settlement concluded.

Ongoing Costs

The same costs applies as with Lease and License accommodation but bear in mind that levies will be payable to the body corporate - for the maintenance and upkeep of the common property, which does not include the resident's individual accommodation, and probably including a "sinking fund" component - and fees to the operator for the provision of general management services and the maintenance of any shared assets (eg. community bus). If the property is an individual's main residence there will normally be no liability for land tax, but council rates may be payable.