In South Africa there are attractive opportunities for retirees who have the means, to re-settle in schemes that offer a range of facilities. These ‘lifestyle’ or ‘retirement’ schemes typically include a full spectrum of outdoor and indoor facilities, lock-up-and-go security, and frail care services with or without an option of assisted living. As these schemes cater for retirees which group may include persons who are becoming vulnerable and less savvy in current business practices, legislation exists that aims to prevent abuse. The Housing Development Schemes for Retired Persons Act 65 1988 (the Act) was introduced to regulate retirement development schemes and to afford buyers in such schemes some minimum level of protection relating to both the development and the ongoing management of these schemes.
DISTINGUISHING THE DIFFERENT FORMS OF RESIDENCE IN RETIREMENT SCHEMES
When you buy into a retirement scheme it is of utmost importance to ascertain which type of rights are acquired, because the underlying legal construct differs greatly with the different types of schemes.