The consumer watchdog has joined calls for urgent law changes to better protect retirement village residents from occupation agreements.
Consumer NZ has labelled some as unfair, claiming terms and conditions can heavily favour villages.
Retiring in a village is the goal for many at the end of their working life.
It's care and stress-free - until you read the terms and conditions.
"It's not like you're a tenant with rental rights, it's not like you own a property and can have the freedom to do what you want with it. You're in quite a different and vulnerable relationship," Consumer NZ CEO Job Duffy said.
Especially when it comes to Occupation Right Agreements.
"One of the key elements we are looking at improving is the length of time a retirement village is able to keep money owed to a resident that exits that facility," Duffy said.
Currently, that time frame is open-ended, but the Retirement Village Residents Association has a simple fix.
"Back to the resident within say a 28-day period which is around about the same time as a landlord has to return the bond back," Retirement Village Residents Association CEO Nigel Matthews said.
A select committee heard today of an anonymous former resident who left her agreement a year ago but is still bound to pay until someone else moves in.
"Her deferred management fee will continue to accrue until her unit is relicensed and she is liable to continue paying $200 a week in operating costs," consumer advocate Aneleise Gawn said.
Eating away at what was supposed to be a move into the golden years of life.
"That next step is a step for life. This is their final move," Matthews said.
If a 20-year-old legislation can be moved in a different direction, retirement might just be a little more peaceful.
