What is a Departure Fee?

A departure fee, also known as an exit fee, is a common practice in retirement villages where residents pay a percentage of the initial purchase price when they leave the village. The departure fee is usually calculated as a percentage of the sale price of the unit or villa, typically ranging from 20% to 40%, depending on the terms of the contract.

The departure fee is intended to help fund the ongoing maintenance and upkeep of the retirement village. It may also be used to fund capital improvements or to cover the costs of new developments within the village. The fee is usually included in the contract signed by the resident when they purchase their unit or villa, and is payable when they leave the village.

Departure fees can be a contentious issue for residents, particularly if they are not fully aware of the terms of the contract. Some residents may feel that the fees are excessive or unfair, particularly if they have lived in the village for a long time and have contributed significantly to the community. However, departure fees are a common practice in retirement villages, and are generally seen as a fair way to ensure that the ongoing costs of the village are covered.

Departure fees are a standard feature of retirement village contracts, intended to help fund the ongoing costs of the village. While they can be a source of contention, they are generally seen as a fair way to ensure that the village remains well-maintained and attractive to new residents.

To begin to search for your ideal retirement village in your chosen location, click on your state below: