My mother has got a place in the care facility where my father resides. They have opted for a buyback from Bolton Clark for their ILU. On her repayment of the unit loan, she has a fee of $2,000 for ‘cost of finding new resident’. This does not seem right to me as they are not acting as real estate agents but owners. She also has to pay a ‘reinstatement cost’ ($6,707) which, as I understand it is to refurbish the unit. Is this correct?
Hi Annette,From our experience it is very common for an operator to charge a fee to find a buyer for an ILU and $2,000 is a relatively low fee - many operators charge a fee equivalent to real estate agents of 2%.In terms of the cost"reinstatement" given the exact amount quoted then I assume the refurbishment is itemised.This refurbishment is a standard procedure when a resident sells a property and is used to cover the cost of repainting, carpet cleaning/replacement etc. depending on what is required to make it ready for sale.Both of these costs should be covered in the contract that your mother signed when she moved into her ILU.Regards