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Termination

There are a number of different ways in which a resident's right of occupation within a retirement village may be terminated (ended).

Termination by operator

An operator of a retirement village can only terminate a resident’s right of occupation in the following circumstances [Retirement Villages Act 2016 (SA) s 44]:

  • where the resident dies
  • where the resident breaches the residence contract or residence rules
  • where the resident acts in a manner that adversely affects the health and safety of persons working in the retirement village or seriously disturbs the peace and comfort of other residents
  • where the residence becomes unsuitable because of the resident’s mental or physical incapacity
  • where it is no longer appropriate for the resident to continue to live in the residence.

The operator must not terminate the resident’s right on the basis of the resident’s behaviour unless they have made reasonable efforts to stop the resident acting in the manner complained of, such as by [s 44(3)]:

  • giving the resident a written warning to stop acting in that manner, or
  • conducting mediation or another type of dispute resolution process with the resident, or
  • attempting another means appropriate in the circumstances.

In most circumstances, and in particular where the resident's behaviour has led the operator to terminate a resident’s right of occupation, the termination must be confirmed by the South Australian Civil and Administrative Tribunal on application by the operator [s 44(8)]. The operator must give the resident at least 5 business days' notice of the application to the Tribunal for it to be effective [s 44(8a)].

A resident’s right of occupation can also be terminated in the following limited circumstances:

  • where the holder of a mortgage or charge that existed at the commencement of the former Retirement Villages Act 1987 (SA) becomes entitled to vacant possession [s 44(1)(e)]
  • where the Supreme Court terminates the residence contract in proceedings under section 58 [s 44(1)(g)]. (Section 58 relates to the termination of an entire retirement village scheme.)

Termination by resident

A resident has a 10 business day cooling-off period to change their mind after they have signed a residence contract [Retirement Villages Act 2016 (SA) s 24(3)]. They can exercise their cooling off rights within this period and notify the retirement village operator in writing that they do not wish to proceed with the contract [s 24(5)]. An operator must, within 10 business days, refund the ingoing contribution of a resident who exercises their cooling off right [s 24(5a)].

A resident can waive their right to cool off if they wish to move into the premises within 10 business days of signing the residence contract [s 24(4)]. They must sign a written waiver acknowledging that they have been informed of their right to cool off and have chosen to waive this right [s 24(4)(b)].

In addition to a cooling off period, a resident has a period of time that is referred to as the "settling-in" period. This is a period of time in which the resident may decide that they do not wish to remain residing in the village. The settling-in period starts from the day the resident signed the contract or began occupying the residence (whichever was later) and ends 90 days thereafter, or such longer period as may be specified in the resident’s contract.

A residence contract cannot limit or qualify the right of a resident to terminate during their settling-in period [s 44(4)].

If a resident terminates the right of occupation during the settling-in period, they are only liable to pay [s 44(5)]:

  • fair market rent for the period of occupation
  • remarketing fees (as set out in the residence contract or, if it is not set out, an amount to cover reasonable costs incurred by the operator)
  • refurbishment fees, if damage has been caused during occupation
  • the costs to reinstate the residence, if the resident has altered the residence and not reinstated it.

A resident cannot be required to pay an amount as a penalty for terminating during the settling-in period [s 44(7)].

The amount due may be deducted from the resident’s exit entitlement [s 44(6)].

Termination  :  Last Revised: Thu Feb 12th 2026
The content of the Law Handbook is made available as a public service for information purposes only and should not be relied upon as a substitute for legal advice. See Disclaimer for details. For free and confidential legal advice in South Australia call 1300 366 424.