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What is the legal structure of Roys Bay Estate?

Roys Bay Estate is registered, and will operate under the provisions of the Retirement Villages Act 2003. As the operator Roys Bay Estate will adhere to the Retirement Village Code of Practice and residents will enter into an Occupation Right Agreement (ORA) for their unit entitling them to protected rights to their unit and the wider village.

The village will be independently supervised by a Statutory Supervisor who operates in favour of the residents. The Roys Bay Estate Statutory Supervisor is Anchorage Trustee Services Ltd based in Christchurch.

Each unit at Roy’s Bay has a stratum estate in freehold title (subject to the registered Memorandum of Encumbrance by Roys Bay Estate) held under the body corporate that is in place at the Village. The Body Corporate owns all the common property within the village.  New residents purchase the stratum estate in freehold title for the land and unit. An Occupation Right Agreement (ORA) registered under the Retirement Villages Act 2003 is stapled to this title and must be purchased with the title as Roys Bay Estate is a registered retirement village.

The ORA sets out the rights and obligations between the operator and the purchaser and holds all the obligations of a typical body corporate together with additional benefits and protections operating in favour of the purchasers.

Residents will have the right to use the completed Clubhouse and will pay for the operation and maintenance of the Clubhouse and general village operations through the Village Outgoings Charge (Weekly Fee).

 

What are my exit payments if I should sell?

Exit payments are outlined in the Occupation Right Agreement and include:

  • 7% of the sales value of your unit, called the Exit Payment.
  • If you use an independent Real Estate Agent to sell your unit (not the operator) then the Exit Payment is reduced to 4%.
  • Any refurbishment costs incurred by the operator in accordance with clause 13 of the ORA.
  • The cost of removing any disability modifications and restoring the unit in accordance with clause 6.10 of the ORA.
  • Any outstanding weekly fee or other charges outstanding.
  • Any other amounts owing by the resident to the operator.

 

Why do you have a Body Corporate as well as being registered under the Retirement Villages Act?

Roys Bay Estate is one of the very few retirement villages where residents will own the legal title to their land and unit. This is achieved through the stratum estate in freehold title being issued with each unit.

By law we must have a body corporate for the stratum title of units and to own and manage the common areas of the village. It is in practice however, subordinate to the Retirement Village Act as most facets required under a Body Corporate are also required under the Retirement Villages Act.

 

What makes Roys Bay Estate different from other Retirement Villages?

Compared to other retirement villages Roys Bay Estate differs in the following key areas:

  • A premium location and the closest to the lakeside and town. It is a 3 minute walk to the lake and a 15  minute walk to town
  • Residents are entitled to the capital gain on re-sale of the unit
  • The village has no Deferred Management Fee (DMF) which is typically 30% of your purchase price.   Instead Roys Bay Estate charges an exit payment of 7% of the sales value of your unit. This includes the village marketing and selling of your unit.
  • Residents purchase the fee simple title to the land their house sits on
  • It is designed for active retirees of 55+ years of age
  • Purchasers can place a security interest over the unit

 

What are my rights?

Your rights are clearly laid out in the Occupation Right Agreement, The Code of Residents Rights and under the Retirement Villages Code of Practice. These documents will be supplied to you on signing your Agreement to purchase a unit. Your lawyer is required to take you through these documents to ensure you fully understand them.

 

Can I place a security over my title?

Yes, you may, however the security will need to rank behind the operator’s encumbrance and not exceed 50% of the value of the unit.

 

Am I able to rent out my unit if I am not using it?

You can only rent out your unit with the prior approval of the operator (Village Manager). Any persons you rent the unit to must adhere to all village rules and can only rent for a maximum of 3 weeks at any one time. Friends and family may also stay to a maximum of 3 weeks at any one time. People renting the unit must be generally of retirement age or have the prior approval from the operator.

These restrictions are in place to protect all residents and ensure that the nature and security of the community is not eroded over time by individual or un-intended actions.

 

What does the weekly fee cover?

Your weekly fee covers all the reasonable running costs of Roys Bay Estate including exterior maintenance and building insurance for your unit and the use of the Clubhouse and all amenities. These costs will be presented to you as audited accounts each year at the AGM. These accounts have the added protection of being assessed by the village Statutory Supervisor on behalf of all residents. You will pay a pro-rata share of these costs.

 

What is the weekly fee?

The exact amount is yet to be determined, however it is expected to be $120 per week, levied monthly. This budget will be formed once the village is operational and contracts for services are met.

 

How will the fee increase?

The weekly fee will be adjusted relative to the actual and forecasted costs of the village. Residents will be consulted with at the AGM each year and prior to any increase taking place with an open book policy.

 

Who covers the maintenance?

All maintenance costs for the exterior of the units, and the village common areas, are covered by the operator. All maintenance costs for the inside of the units are covered by the resident, including the operator’s chattels.

 

Is there an age limit to who can buy into Roys Bay Estate?

You need to be generally of retirement age to purchase in the village. This is at the discretion of the operator but is typically targeted at 55+ years of age.

 

Can a Trust own a unit?

A family trust may purchase a unit and the title however the Occupation Right Agreement (ORA) can only be in the name(s) of the people who permanently reside in the unit. On termination of the ORA payments can be made back to a trust under instruction from the people named in the ORA or their designated EPOA.

 

Am I allowed pets?

Yes, you are, with the prior approval of the operator/Manager. This is done on a case by case basis with the interests of all residents as the key consideration and it may be reversed with similar consideration.

 

Can friends and relatives come and stay?

Yes, they can, to a maximum of 3 weeks at any one time, or longer with approval from the operator.

 

Can I transfer to another unit in the future?

Yes, you may. This is at the operator’s discretion and will involve the sale of your original unit under the terms outlined in the ORA.

 

Who pays for rates, insurance, power, and phone?

Each resident will pay their own rates (aligned with the individual unit title), power, phone, and contents insurance. The operator will be responsible for the building insurance of each unit and the wider village amenities. Residents may be liable for the insurance excess on any damage to their unit should this occur by accident.

 

Am I allowed to alter my unit?

Yes, you may, with prior approval from the operator and by using operator approved designs and contractors. You may need to return the unit to its original form at exit at your cost.

 

Is there reticulated gas?

Yes, for both fireplace and hot water.

 

Will there be high speed broadband?

Yes, broadband will be available.

 

When will the on-site manager start?

The manager will start on-site once the first homes in Stage 1 are occupied.