Instituto DARA

As the population ages, more and more people are choosing to move into retirement communities. Metlifecare is a well-known provider of these communities in New Zealand. One option they offer is an Occupation Right Agreement (ORA). Here`s what you need to know.

What is an Occupation Right Agreement?

An ORA is a legal agreement between a resident and the retirement community provider. It gives the resident the right to occupy a specific unit for a specified period of time (e.g. 10 years). The resident pays a lump sum (called an entry payment) to the provider, which gives them the right to live in the unit for the agreed-upon period of time. At the end of that period, the resident can either renew the agreement or move out.

What are the benefits of an ORA?

For many people, an ORA offers a number of benefits:

– Security: Knowing that you have the right to live in a specific unit for a specific period of time can provide peace of mind.

– Predictability: An ORA outlines the costs associated with living in the retirement community, so you know what to expect financially.

– Access to amenities: Retirement communities often offer amenities such as swimming pools, fitness centers, and social activities. With an ORA, you have the right to use these amenities.

What should you consider before signing an ORA?

Before signing an ORA, it`s important to consider the following:

– Your financial situation: A lump sum payment can be a significant upfront cost. Make sure you can afford it.

– The length of the agreement: Make sure you`re comfortable with the length of the agreement. You don`t want to sign on for a longer period than you`re comfortable with.

– The terms of the agreement: Read the agreement carefully and make sure you understand all the terms and conditions.

– The reputation of the provider: Do your research and make sure the provider has a good reputation. You don`t want to sign on with a provider that has a history of financial issues or poor resident care.

In conclusion, an Occupation Right Agreement can be a good option for those looking to move into a retirement community. Just make sure you carefully consider all the terms and conditions before signing on.