Retirement Villages Act 2003

About the Act

The Retirement Villages Act 2003 sets out the rights and obligations of retirement village operators and residents and anyone considering moving into a retirement village. 

See the Retirement Villages Act 2003(external link)

Review of the Retirement Villages Act 2003

The Government is reviewing the Retirement Villages Act 2003 (the Act). The review looks at whether the law gives enough protection to residents while keeping villages sustainable.

The Government has agreed to changes to the Act which aim to improve consumer protections for residents, rebalance the rights and responsibilities of residents and operators, and help the sector to continue to grow and offer a range of housing options for New Zealand’s increasing older population.

Proposed changes

Below is a list of the key changes being made:

Repayments when a resident moves out

Former residents will be able to apply for early access to their money if they have a special need, such as transferring to aged residential care, or are experiencing financial hardship.

Operators will be required to pay interest on a resident’s owed funds from six months after the resident moves out until the resident is repaid.

A 12-month maximum repayment timeframe will be introduced, so that residents will have certainty they will not have to wait longer than 12 months to be repaid their funds after they vacate their unit.

There will be some operator exemptions from the application scheme and maximum repayment timeframe, including for villages with less than 50 units. Other operators can apply for an extension if needed.

These changes will apply to occupation right agreements signed one year after the amendment bill has been signed into law.

Weekly fees, fixed deductions and capital losses

Weekly fees will stop and fixed deductions will not accrue any higher when a resident moves out of their unit.

Residents will not be liable for capital losses unless they benefit from capital gains.

These changes will apply to new and existing occupation right agreements.

Chattels and fixtures in resident units and apartments

New rules related to chattels and fixtures in units will be introduced so operators are responsible for the items they own and will pay the costs of maintaining, repairing and replacing them.

Operators will have to provide a list of the chattels they own to a resident when the resident moves into the unit.

New rules will be introduced related to gifting chattels to residents.

Complaints and disputes

A new, independent disputes scheme that’s efficient and easy for residents to use will be established.

The new scheme will be delivered by a contracted dispute resolution scheme provider.

Residents will be expected to raise an issue or complaint with the operator. Where it cannot be resolved, the new scheme will assist the parties to reach a negotiated resolution. If a negotiated resolution is not possible the new scheme can make a binding decision

The costs of establishing and operating a new scheme will be met by operators.

Disclosure statements and occupation right agreements

Regulations will be developed to make disclosure statements and occupation right agreements simpler and easier to access so people know exactly what they’re signing up for.

Disclosure rules and obligations will be strengthened to ensure operators are clear and upfront about promised future services and facilities before a resident moves into a village.

The Registrar of Retirement villages will have new powers related to advertising material and registered documents that could mislead or deceive people considering moving into a retirement village.

To improve protections against terms that are unfair to residents, a regulation making provision will be included in the Act which enable regulations to be made which prohibit certain terms from being included in occupation right agreements.

Next steps

We expect a bill reflecting the changes will be introduced to Parliament in mid - 2026. The next opportunity for stakeholders and the public to have a say on the proposed changes will be during the select committee stage.