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Transfer of items of capital to village operator 

The Retirement Villages Act 1999 was changed from 1 March 2010 to prevent a village operator from transferring ownership or their responsibility for the maintenance of certain items of capital to a resident. In the past, this sometimes occurred where a resident:

  • signed a contract with the operator agreeing to purchase the items of capital, or
  • signed a contract or other document with the operator, agreeing to the resident being responsible for maintaining or replacing the items of capital.

Under the law, operators are now prohibited from:

  • selling items of capital to residents for which the operator is responsible, or
  • passing responsibility for any such items of capital to a resident under a residence contract or any other agreement or arrangement.


NOTE: This does not apply to items of capital in strata or community scheme villages. In these cases, the items of capital in premises would belong to the resident or, if the item is common property or association property, to the owners' corporation or community association.


A resident who purchased items of capital from an operator, or agreed to be responsible for maintaining or replacing the items of capital before 1 March 2010, may be able to transfer ownership or responsibility back to the operator by giving a written notice.

The notice should specify the resident’s and operator’s names, the address of the resident’s premises in the village, details of the relevant items of capital, and the agreement that was made.

Residents can prepare their own notice or use one of the following templates:

1. Form 25 – for use where a resident purchased items of capital from a village operator on or after 23 November 2006 for which the operator would have been responsible.

Download Form 25 (PDF size: 31kb)
Download Form 25 (Word size: 60kb)

2. Form 26 – for use where a resident entered into a contract, agreement or scheme with the operator before 1 March 2010 to be responsible for maintenance or replacement of items of capital for which the operator would have otherwise been responsible.

Download Form 26 (PDF size: 27kb)
Download Form 26 (Word size: 51kb)

NOTE: A Form 26 notice or equivalent prepared by a resident will have no effect if it is given to the operator after 2 June 2010.

For more information or help, contact NSW Fair Trading on 9895 0297 or toll free on 1800 625 963.

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