Life Rights how does it work
A life right is a legal agreement where an individual (the life right holder) pays a once-off sum to secure the right to occupy a unit for life.
The property remains legally owned by the developer or management company.
No transfer duty or property registration occurs, as it is not an ownership transaction.
Upon the death of the holder (or if they choose to leave), the right reverts to the owner or is resold, often with a portion of the resale proceeds going to the estate of the life right holder.
When Do They Apply in Sectional Title?
In a sectional title scheme, life rights are less common but can exist if a developer or body corporate allocates certain units under life rights agreements rather than selling them as sectional title units. The developer retains ownership of the unit, while the occupant has an exclusive right of occupation. This model is commonly used in retirement villages, where life rights offer a more affordable alternative to full ownership.
