FAQ – How do reinstatement or refurbishment costs effect you or your estate –

What is meant by Reinstatement or Refurbishment of the Unit? Are they synonymous?

Firstly, these terms are NOT synonymous.

Reinstatement refers to the unit being restored to the same condition when the resident first entered the unit.

Refurbishment, on the other hand, is upgrading, improving, and modernising the unit before the new resident purchases or accepts the licence to reside in the unit. Older units are expensive to upgrade, and the operator may be tempted to pass this expense on to the outgoing resident or his estate.

Many disputes occur in this situation, because the RVAct is ambiguous in this area allowing the resident to be easily intimidated by the operator. The financial outlays asked of the resident can be substantial so laying the grounds for a dispute. Agreement between both parties on what requires to be done, and how it will be paid for would reduce the number of disputes in this area.

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