When you terminate your Licence to Occupy agreement, three types of payments are deducted from the purchase price you originally paid. These are:
1. The Village Contribution (also known elsewhere as the Deferred Management Fee, or DMF): This finances the provision of the common
facilities and the maintenance costs not covered by the weekly fee. It also covers redecoration and refurbishment costs of your villa or apartment
(unless significant damage has been made to the interior of the villa or apartment, including chattels, that is not attributable to normal wear and tear). It also covers reselling costs when you vacate your villa or apartment.
It is a percentage of your original purchase price, calculated on a monthly basis at 6.25% per year for 4 years, to a maximum of 25%. If you have a basement
car park and have made a car park payment, the same village contribution will apply to the car park payment. In practical terms the village contribution works like this:
Example:
Purchase price of Licence to Occupy: | $800,000 |
Village Contribution of 6.25% p.a. per year for 4 years | $200,000 |
At Period End | Village Contribution | Accumulated Contribution | Total Repayable to Resident |
---|
Year 1 | 6.25% of purchase price | $50,000 | $750,000 |
Year 2 | 12.5% of purchase price | $100,000 | $700,000 |
Year 3 | 18.75% of purchase price | $150,000 | $650,000 |
Year 4 | 25% of purchase price | $200,000 | $600,000 |
2. Any outstanding amounts owed to The Grove from your service packages or weekly fees. The weekly fee is charged for six months after you leave The Grove or until your villa or apartment is resold and settlement has been received, whichever comes first.
3. An administration fee of 1.5% of your original purchase price.