Intending Residents

The term “Intending Resident” is used to describe someone who has expressed the intention of buying the right to occupy a unit in a Retirement Village. Most Operators require applicants to sign an application form and pay a deposit to reserve a unit.

Covenant provides a “stakeholder facility”, which is a Trust Bank Account, where these payments are held in trust until the transaction is complete. All payments towards the purchase of an Occupation Right Agreement (“ORA”) must by law be progressed through the statutory supervisor.

Funds are held in an interest earning account and the interest is paid over with the money when it leaves Covenant’s safe-keeping.

When you purchase an ORA in a Retirement Village the law requires you to be advised by a solicitor who will act on your behalf. This is because the agreement you will enter into is a complex document and the lawyer is required to fully explain the implications of the transaction to you.
It is the responsibility of the Operator to ensure that all the information provided to you is correct. Covenant monitors this, and can intervene if in our opinion something misrepresents the position of the village.