Residents demand immediate action as retirement dream turns into nightmare
- Replies 54
What seemed like the perfect coastal retreat has become a complicated ordeal for residents of a once-promising community, as unexpected challenges and disputes disrupt their plans for a peaceful retirement.
Unresolved tensions have left many questioning what the future holds for their once-cherished haven.
At the heart of the controversy is the complex's dual nature as both a strata complex and a retirement village, governed by overlapping regulatory schemes that have left residents grappling with opaque contracts and unexpected fees.
The situation has escalated to the point where residents are now calling for government intervention to resolve a bitter and exhausting fight.
Barbara Allen's story is emblematic of the issues Harbour Pines residents face.
At 92 years old and living with Parkinson's disease, Barbara sought more independence.
She moved into the village in February 2023 after investing $184,000 of her life savings into a $260,000 unit under a 'lease-for-life' agreement.
This type of contract allows residents to live in their unit as long as they can but does not grant them ownership of the property.
'It only lasted one day,' Mr Allen said.
'She thought she'd be able to carry on a normal life, [but] she fell over and took all the skin off her arm and she went to hospital.'
Tragically, Barbara's stay at Harbour Pines lasted only a day before a fall sent her to the hospital, where she was diagnosed with dementia.
She never returned to the unit and passed away in June 2024 without receiving any refund on her lease.
Her children are now embroiled in a legal dispute with Adder Holdings, the operator of Harbour Pines, over the return of her investment.
The Allen family's lawyer has accused Adder Holdings of unconscionable conduct for signing Barbara up to the lease, given her advanced age and health issues.
'Given this is currently before the court, Adder does not wish to comment further on this matter other than to say they are serious allegations that are strongly disputed by Adder,' he said.
Adder Holdings, however, contests the allegations, asserting that Barbara could agree at the time.
The Allens are not alone in their struggle. More than a dozen residents and families have voiced serious concerns about Harbour Pines's financial management, with some being pursued for what they describe as exorbitant fees and unexplained charges.
The case of Gail De Lacy, a legally blind and cancer-stricken resident who was taken to court over a disputed emergency maintenance fee, highlights the aggressive debt recovery practices employed by Adder Holdings.
Despite legal advice that she did not owe the money, the court ruled in the company's favour, and her estate was left with less than half of what she paid for her unit after her death.
The residents' attempts to take control of the situation have been met with resistance and legal setbacks.
A group known as 'the targeted 10,' including 92-year-old Bert Lenane and his wife Peggy, have faced claims of arrears in the tens of thousands of dollars.
Their efforts to appoint a new manager for the property were invalidated by the State Administrative Tribunal, which ruled that a meeting they held was not correctly recorded.
These disputes have prompted calls for an inquiry into the strata management industry, with consumer groups highlighting unethical practices, lack of transparency, and insufficient oversight as key issues.
The Consumer Protection Commissioner for Western Australia has acknowledged receiving complaints about Harbour Pines and is working to improve the village's financial transparency.
At the national level, scrutiny of retirement villages has intensified following reports of 'corporatised elder abuse.'
Federal Financial Services Minister Stephen Jones has engaged with state counterparts to address the conduct of retirement village operators and explore harmonising regulations to protect consumers better.
Legal reforms in Western Australia, set to take effect in December, aim to establish more straightforward rules for lease-for-life holders and maintenance responsibilities.
These changes offer hope for a cleaner, more accountable sector, but as lawyer Haydon Bawden points out, enforcement is key.
The plight of Harbour Pines residents serves as a stark reminder of the vulnerabilities seniors face in retirement living arrangements.
As a society, we must prioritise the protection of our most vulnerable members, ensuring that their retirement years are spent in comfort and dignity, not embroiled in legal battles and financial uncertainty.
How can unclear rules put your retirement savings at risk? What should you check before signing a retirement village contract? Share your thoughts and opinions in the comments below.
Unresolved tensions have left many questioning what the future holds for their once-cherished haven.
At the heart of the controversy is the complex's dual nature as both a strata complex and a retirement village, governed by overlapping regulatory schemes that have left residents grappling with opaque contracts and unexpected fees.
The situation has escalated to the point where residents are now calling for government intervention to resolve a bitter and exhausting fight.
Barbara Allen's story is emblematic of the issues Harbour Pines residents face.
Families were caught in a legal dispute over the lease-for-life contract at a retirement village. Credit: Facebook
At 92 years old and living with Parkinson's disease, Barbara sought more independence.
She moved into the village in February 2023 after investing $184,000 of her life savings into a $260,000 unit under a 'lease-for-life' agreement.
This type of contract allows residents to live in their unit as long as they can but does not grant them ownership of the property.
'It only lasted one day,' Mr Allen said.
'She thought she'd be able to carry on a normal life, [but] she fell over and took all the skin off her arm and she went to hospital.'
Instead, they are subject to exit fees and other charges upon leaving.Tragically, Barbara's stay at Harbour Pines lasted only a day before a fall sent her to the hospital, where she was diagnosed with dementia.
She never returned to the unit and passed away in June 2024 without receiving any refund on her lease.
Her children are now embroiled in a legal dispute with Adder Holdings, the operator of Harbour Pines, over the return of her investment.
The Allen family's lawyer has accused Adder Holdings of unconscionable conduct for signing Barbara up to the lease, given her advanced age and health issues.
'Given this is currently before the court, Adder does not wish to comment further on this matter other than to say they are serious allegations that are strongly disputed by Adder,' he said.
Adder Holdings, however, contests the allegations, asserting that Barbara could agree at the time.
The Allens are not alone in their struggle. More than a dozen residents and families have voiced serious concerns about Harbour Pines's financial management, with some being pursued for what they describe as exorbitant fees and unexplained charges.
The case of Gail De Lacy, a legally blind and cancer-stricken resident who was taken to court over a disputed emergency maintenance fee, highlights the aggressive debt recovery practices employed by Adder Holdings.
Despite legal advice that she did not owe the money, the court ruled in the company's favour, and her estate was left with less than half of what she paid for her unit after her death.
The residents' attempts to take control of the situation have been met with resistance and legal setbacks.
A group known as 'the targeted 10,' including 92-year-old Bert Lenane and his wife Peggy, have faced claims of arrears in the tens of thousands of dollars.
Their efforts to appoint a new manager for the property were invalidated by the State Administrative Tribunal, which ruled that a meeting they held was not correctly recorded.
These disputes have prompted calls for an inquiry into the strata management industry, with consumer groups highlighting unethical practices, lack of transparency, and insufficient oversight as key issues.
The Consumer Protection Commissioner for Western Australia has acknowledged receiving complaints about Harbour Pines and is working to improve the village's financial transparency.
At the national level, scrutiny of retirement villages has intensified following reports of 'corporatised elder abuse.'
Federal Financial Services Minister Stephen Jones has engaged with state counterparts to address the conduct of retirement village operators and explore harmonising regulations to protect consumers better.
Legal reforms in Western Australia, set to take effect in December, aim to establish more straightforward rules for lease-for-life holders and maintenance responsibilities.
These changes offer hope for a cleaner, more accountable sector, but as lawyer Haydon Bawden points out, enforcement is key.
The plight of Harbour Pines residents serves as a stark reminder of the vulnerabilities seniors face in retirement living arrangements.
As a society, we must prioritise the protection of our most vulnerable members, ensuring that their retirement years are spent in comfort and dignity, not embroiled in legal battles and financial uncertainty.
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