The deferred management fee is the return to the owner for the investment that the company has made in establishing Blue Hills, providing the infrastructure such as roads, the country club, the chapel, the pool and other recreational and social facilities. It is essentially a delay in payment of the true market price by the resident until they leave the village.
Delaying the fee until leaving allows the resident access to more of their funds earlier, so they can enjoy their lifestyle.
On the resale of your unit Blue Hills deducts the deferred management fee. This is calculated on the purchase price of your unit and it is 3% per year capped at 10 years. You will also receive on the sale of your unit 50% of any capital gain.