Our Benefits

Glossary

• Occupational Right Agreement (ORA)

  An occupation right agreement (ORA) gives you a contractual right/ licence to occupy your Unit and use the Village Facilities. The ORA does not grant you an interest in the land relating to your Unit. The ORA is a standard contract and amendments or variations to it can only be made if both parties agree to the amendments or variations, and to the extent allowed by the Retirement Villages Code of Practice 2008. Most retirement villages in New Zealand use an ORA.

• Deferred Management Fee

  The Deferred Management Fee is a delayed payment made on your termination of the ORA. It is to cover the costs of the maintenance and management of the community, including the villas and the community amenities. This fee will be deducted from the Repayment Sum. The Deferred Management Fee will be an amount calculated on a daily basis at a rate equal to 5% of the Residence Advance per annum provided that the Deferred Management Fee will not be less than 5% of your Residence Advance and more than an amount equal to 15% of your Residence Advance.

• Deposit

  A Deposit of $5,000 is payable by you on signing the ORA and this is part payment of the Residence Advance. The Deposit is held by the Statutory Supervisor until the later of 15 Working Days after you sign the ORA and the date your Residence Advance is paid.

• Residence Advance

  To secure an interest in a Unit within a Vivid Living Village, you must pay the Residence Advance. The Residence Advance differs depending on the size and location of the Unit. The Residence Advance is set by Vivid Living and our view of the current market price of an ORA for that Unit.

• Repayment Sum

  On termination of the ORA and you leaving your Unit, you are entitled to be paid the Repayment Sum in accordance with the terms of the ORA.

  Except for when the ORA is terminated due to a Destructive Event, the Repayment Sum is an amount equal to the Residence Advance paid by you for your Unit less the following deductions:

  • the Deferred Management Fee (calculated as set out in section 8.7 below);
  • any outstanding Village Fees or utility charges;
  • any other charges payable to us under the ORA

  In addition to the Repayment Sum, you will also be paid your Capital Gain Share.

• Capital Gains

  If the sum received on the resale of the ORA for your villa, is greater than the sum you paid together with the costs incurred in selling your villa (which include refurbishment and sales and marketing costs), you will share 50% of the remaining gain.

  This is more particularly calculated as follows:

  0.5 x (a – (b + c))

  where:

  a = the Residence Advance received by us for the resale of the ORA to your Unit,

  b = the Residence Advance paid by you; and

  c = Costs incurred in selling your unit – being the cost of refurbishing your Unit and the Operator’s Chattels as detailed in the ORA plus the Sales and Marketing fee (calculated as 2% of a).

  (Capital Gain Share)

  If (b + c) is greater than a, the capital gain share payable to you will be zero (and Vivid Living will not seek reimbursement of the balance of the refurbishment costs or the Sales and Marketing Fee from you).

  You will not incur a capital loss if the Resident Advance received from the resale of your Unit is less than the amount you paid.
  

• Cooling Off

  We’re confident you will enjoy living in a Vivid Living Village, however, if you are not happy and wish to leave within 60 days of moving in you can do so by notifying us in writing at least 10 days before the 60 day period ends. We will repay your Residence Advance in full and no Deferred Management Fee will be charged.

• Village Fee

  The Village Fee is a contribution to the cost of running your Village and cover things such as rates, building insurance, maintenance, and the provision of other services in the Village.