What is a retirement village?

The term 'retirement village' is defined in section 6 of the Retirement Villages Act 2003 and covers a wide range of villages, regardless of what it is actually called.

It is irrelevant what particular legal form (such as a licence to occupy, unit title, or lifetime lease or tenancy) is used when a resident purchases a right to live in a unit - regardless of the form, the residents will be protected by the Retirement Villages Act.

A retirement villages is any place that has all of the following features.

• Multiple units - The place has two or more residential units.  A residential unit might be a villa, an apartment, a studio unit, a kaumatua flat, or even a room in a rest home, or any other place that was built as, or is now mainly used as a unit of accommodation.
• Accommodation and services/facilities - The place provides residential accommodation, together with services or shared facilities, or both.
• For retirement - The place is mainly for people in their retirement (including their spouses or partners).
• Capital sum - The residents pay a capital sum in return for their right to live in the place.  As well as a lump sum, a "capital sum" can also mean periodical payments, if the payments are substantially more than would be paid to cover rent and such services or facilities for the relevant period.

We recommend that you seek independent legal advice if you are unsure whether your premises fall within the definition of a retirement village.