What is a Retirement Village Exit Fee?

A Retirement Village Exit Fee, also known as a Deferred Management Fee (DMF), is a fee that is payable by a resident when they leave the retirement village. The Exit Fee is typically calculated as a percentage of the original purchase price of the unit or villa, and is intended to cover the costs of maintaining and upgrading the village.

The Exit Fee is an important consideration for anyone planning to leave a retirement village, as it can have a significant impact on their financial situation. The percentage used to calculate the Exit Fee can vary between retirement villages, and can range from 10% to 40% of the original purchase price.

In some cases, the Exit Fee may be capped or reduced after a certain number of years. This is designed to ensure that residents are not penalized for staying in the village for a long period of time.

It is important for residents to carefully review the terms of their contract and seek legal advice if necessary. This can help to ensure that they fully understand the calculations used to determine the Exit Fee and are not caught off guard when it is time to leave the village.

The Retirement Village Exit Fee is an important consideration for anyone planning to move into a retirement village. By understanding the terms of the contract and the potential impact of the Exit Fee on their financial situation, prospective residents can make an informed decision about whether a retirement village is the right choice for them.

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