Legal Agreement

The formal, legal relationship between MHA and a potential Occupant (resident) of a cottage is triggered by the parties signing an “Agreement for the grant of a right of occupation of a cottage”, and which is generally referred to as a Life Right Endowment. It clearly describes each party’s obligations, terms of payment and the eventual refund, the monthly Levy, the handling of structural alterations and additions, and the circumstances governing termination of the contract. This also applies to Bedsitter accommodation.

The Agreement spells out the party’s obligations:

MHA’s obligations:

v  Maintain the cottage/grounds/infrastructure in good order

v  Arrange insurance on the buildings and MHA property

v  Publish House Rules, and maintain an active Liaison Committee for each village and Bedsitters

v  Afford a resident, who becomes infirm and frail, preference for accommodation in one of MHA’s frail care facilities, as a vacancy occurs, at the prevailing rate for such accommodation

Occupants’ obligations:

v  The cottage will be used for residential purposes only

v  Abide by the House Rules

v  Pay the Levy

v  Pay for domestic electricity and, if applicable, water consumed at the cottage


MHA will capitalize, for refund purposes, alterations and additions carried out for the Occupant and which are approved in writing by MHA, up to a total value of 10% of the amount paid by the Occupant for the Life Right. For example, if the Life Right Endowment cost is R600 000, and the incoming Occupant is given permission to carry out desired alterations costing R100 000 (a new kitchen, new fitted cupboards, laminated flooring and the like), only R60 000 (10% of R600 000) of those costs will be capitalized for eventual Refund calculation purposes.