It is important for intending residents to be fully aware of the nature of the occupation right agreement and how this affects ownership of their villa.
The Occupation Right Agreement is the most common form of occupation and ownership in retirement villages in New Zealand. All villages are required to be registered and are governed by the Retirement Villages Act 2003 and its regulations. One of these requirements being that the village appoints a Statutory Supervisor, whose role it is to protect residents rights.
An Occupation Right Agreement gives you the right to occupy your chosen villa for your lifetime, and the right to enjoy the land, buildings and facilities intended for common use in the village, in accordance with the terms and conditions of the Occupation Right Agreement.
Under the Retirement Villages Act, you are required to get independent legal advice before signing an occupation right agreement. The lawyer must explain the occupation right agreement to you in a way that’s appropriate, then witness your signature and certify that they have done this.