Exit Fees in Queensland Retirement Villages – The Hidden Costs You Must Know Before Signing
Exit Fees in Queensland Retirement Villages – The Hidden Costs You Must Know Before Signing
If you’re considering a retirement village in Queensland, you’ve probably heard the term exit fee or Deferred Management Fee (DMF).
What many people don’t realise is just how much this clause in your contract can affect your future finances — and how many hidden deductions may be buried alongside it.
At Gullickson Lawyers, we’ve reviewed retirement village contracts across Queensland, and we can tell you: exit fees are rarely as straightforward as they first appear.
What Is an Exit Fee – and Why It’s More Complicated Than It Sounds
An exit fee is a payment to the village operator when you leave — whether you’re moving, going into aged care, or after you pass away.
It’s usually calculated as a percentage of your ingoing contribution for each year you stay, up to a capped maximum. But in some contracts, it’s calculated on your resale price — which can mean thousands more in deductions.
The Hidden Traps in Exit Fee Clauses
Even if the percentage looks reasonable, your contract may allow for other deductions, including:
Refurbishment costs – bringing your unit up to market standard before resale
Sales commissions – even if handled internally by the operator
Ongoing fees while your unit is on the market – which can continue for months or years
Marketing costs – taken before you receive your settlement funds
These deductions can significantly reduce your payout — and are often overlooked without a thorough legal review.
Why Reading the Contract Yourself Isn’t Enough
Retirement village contracts are lengthy and highly detailed. It’s not just about reading the words — you need to see how clauses interact and where hidden costs may arise.
Without professional advice, you risk:
Missing clauses that increase costs over time
Underestimating how long ongoing fees will apply
Agreeing to terms that limit your options later
Reducing the amount your estate will receive
Once signed, the exit fee and related terms are locked in and can’t be renegotiated.
When to Contact Gullickson Lawyers
Reach out before you sign if:
You want a clear breakdown of your exit fee in dollar terms
You’re comparing different village contracts
You’re feeling pressured to sign quickly
You want your family to understand your future costs
Why More Queensland Residents Choose Gullickson Lawyers
With offices in Caloundra and Stones Corner, we help clients across Queensland understand and navigate retirement village contracts.
Our Principal, Sherri Gullickson, has a family background as aged care owner-operators — giving her unique insight into how villages operate and what to watch for in their contracts.
When you work with us, you receive:
A plain-English explanation of your contract terms
A realistic projection of what you’ll receive when you leave
Guidance on identifying clauses that may be open to negotiation
Protect Your Future Before You Sign
An exit fee can be one of the largest expenses you’ll face in retirement. Make sure you understand it fully before committing.
Call Gullickson Lawyers today for a fixed-fee retirement village contract review:
Brisbane Office: 07 3397 9922
Caloundra Office: 07 5222 4039
Visit us in Caloundra or Stones Corner.
Don’t leave your future to chance — know the real cost before you sign.