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.

In November 2025, the Government agreed to changes to the Act 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.

The Government revised some decisions related to repayments when a resident moves out of a retirement village in September 2026. The maximum repayment timeframe has been reduced from 12 months to 9 months. An initial 10 percent repayment to former residents who leave their unit to live elsewhere replaces interest payments from 6 months.

Proposed changes

Below is a list of the key changes being made:

Repayments when a resident moves out

Former residents who leave a village to live elsewhere will receive an initial 10 percent repayment within four weeks of their occupation right agreement ending.

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

A 9-month maximum repayment timeframe will be introduced, so that residents and their families will have certainty that they will not have to wait longer than 9 months to be repaid their funds after they vacate their unit.

There will be some operator exemptions from the application scheme, the 10 percent repayment and maximum repayment timeframe, including for villages with fewer than 50 units. Non-exempt operators can apply for an extension to the maximum repayment timeframe 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

A bill reflecting the changes will be introduced in the next Parliamentary term. The next opportunity for stakeholders and the public to have a say on the proposed changes will be during the select committee stage.