Change of retirement village operator

An existing scheme operator must give notice (Form 11A) (PDF, 84KB) to the chief executive about a proposal to transfer control of the retirement village's operations. Within 28 days of giving the chief executive notice of the proposal, the existing scheme operator must give the chief executive a proposed transition plan unless the chief executive grants an extended notice period.

From the date the transfer takes effect, the new scheme operator is the scheme operator for the retirement village and obtains the benefits and is subject to the obligations of the existing scheme operator in relation to a residence contract associated with the retirement village scheme.

A transition plan is not required for a transfer of control of a scheme's operation under a contract that was executed before the commencement of the relevant sections in the Act.

If the contract to transition a village was executed before 11 November 2019, a transition plan is not required.

Content of a transition plan

A transition plan (Form 11) (DOCX, 353KB) must include details about:

  • the existing and new scheme operators, managers and land owners
  • how residents will be consulted and kept informed during the transition process
  • when transfer of control is proposed to take place
  • time frames for the handover period
  • the schedule and details about transition of operations, including:
    • general services and maintenance
    • personal services
    • disclosure of mandatory payments due to former residents
  • the transfer of village financial documents and other reports to the new operator
  • the transfer of control for the budgets and funds for the capital replacement, maintenance reserve and general services funds to the new operator
  • any transfer of leases for other businesses or services operating in the village (e.g. hairdresser, café)
  • impacts for the body corporate arrangements in the village
  • significant impacts for residents during or as a result of the transition.

Approval process for transition plans

The approval process aims to balance the commercial interests of village operators with residents' interests and the effects the transition will have on their home and quality of life.

You must seek approval from the chief executive of the Department of Housing and Public Works, by:

  1. Giving notice of a proposal to transfer control of the village
  2. Giving the proposed transition plan to the chief executive within 28 days of giving notice. The chief executive can grant an extended notice period.

If the chief executive is satisfied the plan provides a clear, orderly and fair process for transition, they will approve the plan. If not, they can request additional information from the operator or tell the operator to revise the plan.

The chief executive may also request additional information from the operator or direct the operator to revise the proposed transition plan.

During the approval process, the chief executive can give a copy of the plan to any person they think has an interest in the transition, and will consider submissions from those people. This may include:

  • residents
  • former residents with a financial interest in the village
  • families of residents
  • anyone else who may be significantly affected by the transition.

If you want to revise an approved plan, you must make an application to the chief executive. Revisions to the plan will only be approved if the chief executive is satisfied that the revised transition plan provides for a clear, orderly and fair process for transitioning control of the retirement village.

If the chief executive approves the proposed transition plan, or a revision to an approved transition plan, each resident in the retirement village will receive a Queensland Civil and Administrative Tribunal (QCAT) information notice for the decision.

The Act requires that an information notice be issued, however at this time there is no legislative right to review the decision. If the Act is amended to provide a right of review, we will notify you.

You may also discontinue to transition control of the retirement village scheme's operation by providing a notice (Form 11B) (PDF, 82KB) to the chief executive.

Your responsibilities

As an operator, you should ensure the proposed process for transitioning control of the retirement village scheme is clear, orderly and fair.

Both you and the new scheme operator are responsible for implementing an approved transition plan. Penalties may apply under the Act.