Denne said changing the "unfair terms" would provide her with "peace of mind and help level the existing unlevel playing field".
She said she was "happy" to be a village resident for the lifestyle, but "it is not until you start living in a village that you realise how one-sided the agreement we have to sign to live in a village is".
It often took "many months" after residents moved out of their units to have the initial payment returned. And operators typically refurbished a unit to on-sell.
"The renovations are done while the unit is empty and the exiting resident is not paid out until the new resident has paid for the refurbished unit."
Denne said residents who left also had to continue paying a weekly service fee until the unit was filled meaning there was "no incentive" to fast track the refurbishment.
Carr said the service fee was often given to family members if the resident had died.
"The poor bloke who is dead isn't getting any benefit paying $150 a week for the services."
He said Associate Minister of Housing, Building and Construction Poto Williams had received clear recommendations from the Retirement Commissioner, Consumer New Zealand and retirees across the country on what needed to change.
"If we want to ensure retirees are presented with paperwork that is easy to understand, have a clear idea of care available to them now and in future, have fair fees, dedicated advocacy support and are protected from cowboy operators we need the minister to engage with the advice she has been given."
Retirement Villages Association executive director John Collyns said the establishment of a 28-day repayment period upon the termination of an Occupation Rights Agreement was "unworkable".
He said it would create significant cost for residents with every village required to hold significant capital for "may-be" events.
"This would negatively impact residents and operators. For example, residents may see their village experience suffer due to poor liquidity, putting the long-term viability of a village in doubt," he said.
"Operators would require higher levels of capital or buy-back funding facilities and this would affect the supply of new village developments, including much-needed aged care facilities."
He said around 15 per cent of retirement villages were in the not-for-profit sector and did not generally have a second source of capital.
"Resale times are currently not excessive and a better approach would be to look to address these isolated instances than throw out the whole model."
Tauranga's National MP Simon Bridges, said it had been 20 years since the Act was put in place and it was time for it to be reviewed.
"Myself and National agree there should be a review. We certainly accept there are issues, and they need a good public airing."
Bridges said National would "apply pressure" through the select committee if it was not reviewed.
Williams said a legislation review was warranted, and she was meeting association members to discuss their views.
Williams said it was an "important piece of work and we want to take time to get it right".
"It is vital that the regulatory regime strikes the right balance for residents and operators, and is based on a sustainable model for the sector."
