If you decide that you wish to become a resident of
Kenilworth Gardens Retirement Village (KGRV), you or your legal representative
will be given full copies of all documents involved.
As KGRV enters
a new 99-year lease with each new resident, the legal terms used
differ from those used in a sale of land. To help you with these
terms, here is an approximate translation.
• The Resident is the incoming or prospective
resident
• The Premises means the enclosed area of the villa or unit
• A Residence Contract takes the place of a Contract for Sale
• The Ingoing Contribution is the agreed price
• Completion is when the Ingoing Contribution is paid, and
is also called settlement.
This is not to be seen as a substitute
for independent legal advice, which you are urged to obtain if you have not already
done so.
Residence Contract
The Residence Contract provides for the payment by the Resident of
an Ingoing Contribution. The Residence Contract is conditional
upon approval of the Resident as a resident of the Village and
vacation of the Premises by the previous resident.
Lease
On completion, a Lease is granted to the Resident, conferring a right
of exclusive occupancy of the Premises, with a right of shared
use of the common areas within the Village, for 99 years. The Lease
is registered on the title of Kenilworth Gardens Retirement Village.
During this term, only the Resident may use or occupy the Premises
as a residence. The Lease is not assignable. The Resident may share
the Premises with another person only with the consent of Management.
The Resident will be required to maintain the Premises in good
order and condition and to pay a monthly contribution towards the
operating expenses of the Village.
Accounting on Completion
On completion, subject to the residence contract, the available proceeds
of the Ingoing Contribution are repayable to the Resident; if the
amount payable by the next incoming resident is more than the Ingoing
Contribution paid by the Resident, the Resident will be entitled
to half of the excess; if the amount payable by the next incoming
resident is less than the Ingoing Contribution paid by the Resident,
the whole of the difference will be deducted from the amount repaid
to the Resident. There will be deducted (from the Ingoing Contribution)
a departure fee calculated daily during the term of the residence
contract on the basis of a percentage of the amount payable by
the next incoming resident, as follows:
5% for the first year; and
2.5% for each subsequent year,
up to a maximum total of 11 years. In effect, the departure fee cannot
exceed 30% of the amount payable by the next incoming resident
Stamp Duty
Although the Lease term is 99 years, the Office of State Revenue
has agreed, for assessment purposes only, that residence contracts
and leases (for villas and units) will be treated as having a term
of 11 years.
This arrangement reduces NSW Duty significantly for an
incoming resident, and consequently the cost of entry to a villa
or unit.
A resident, however, may apply to the Chief Commissioner
for a refund of the Duty paid if a lease is terminated within 11
years.
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If you decide that you wish to become a resident of Kenilworth Gardens
Retirement Village (KGRV), you or your legal representative will
be given full copies of all documents involved.
As KGRV enters a new 99-year lease with each new resident, the legal
terms used differ from those used in a sale of land. To help you
with these terms, here is an approximate translation.
• The Resident is the incoming or prospective
resident
• The Premises means the enclosed area of the serviced apartment
• A Residence Contract takes the place of a Contract for Sale
• The Ingoing Contribution is the agreed price
• Completion is when the Ingoing Contribution is paid, and
is also called settlement.
This is not to be seen as a substitute for independent legal advice,
which you are urged to obtain if you have not already done so.
Residence Contract
The Residence Contract provides for the payment by the Resident of
an Ingoing Contribution. The Residence Contract is conditional
upon approval of the Resident as a resident of the Village and
vacation of the Premises by the previous resident.
Lease
On completion, the Lease is granted to the Resident, conferring a
right of exclusive occupancy of the Premises, with a right of shared
use of the common areas within the Village, for 99 years. The Lease
is registered on the title of Kenilworth Gardens Retirement Village.
During this term, only the Resident may use or occupy the Premises
as a residence. The Lease is not assignable. The Resident may share
the Premises with another person only with the consent of the Management.
The Resident will be required to maintain the Premises in good
order and condition and to pay a monthly contribution towards the
operating expenses of the Village.
Service Agreement
Under the Service Agreement KGRV, in conjunction with Kenilworth
Nursing Service, agrees to provide the Tenant with various services,
including:
• cleaning of the Premises once a week
• laundry of bed linen and towels
• electricity and central heating
• garbage collection
• meals
The Resident must pay KGRV a service fee by monthly payments in
advance on the first day of each month. Various additional services
are available (on request) on a user pays basis.
Accounting on Completion
On completion, subject to the residence contract, the available proceeds
of the Ingoing Contribution are repayable to the Resident; if the
amount payable by the next incoming resident is more than the Ingoing
Contribution paid by the Resident, the Resident will be entitled
to half of the excess; if the amount payable by the next incoming
resident is less than the Ingoing Contribution paid by the Resident,
the whole of the difference will be deducted. There will be deducted
(from the Ingoing Contribution) a departure fee calculated daily
during the term of the residence contract on the basis of a percentage
of the amount payable by the next incoming resident, as follows:
5% per year for a maximum of 6 years.
In effect, the departure fee cannot exceed 30% of the amount payable
by the next incoming resident.
Stamp Duty
Although the Lease term is 99 years, the Office of State Revenue
has agreed, for assessment purposes only, that serviced apartment
residence contracts and leases will be treated as having a term of
6 years.
This arrangement reduces NSW Duty significantly for
an incoming resident, and consequently the cost of entry to a serviced
apartment.
A resident, however, may apply to the Chief Commissioner
for a refund of the Duty paid if a lease is terminated within 6
years.
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