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Contracts
Continuing care contract provisions can vary extensively from provider-to-provider and community-to-community. Contracts can provide for a refund of a portion of the entrance fee when the contract is terminated, or specify that the entrance fee is fully amortized over a certain period of time and residents or their heirs are not entitled to a refund after that time. Contracts can entitle residents to a membership arrangement, a proprietary interest in their living unit, or a party to a master trust agreement.
The Department reviews each provider's continuing care contract form to assure they contain all provisions required by Health and Safety Code section 1788. You may view the Health and Safety Code requirements by clicking on the "Statutes" tab on the left side of your screen. The basis of the Department's approval is a determination that the provider has submitted a contract that complies with the minimum statutory requirements. Approval by the Department is NOT a guarantee of performance or an endorsement of any continuing care contract provisions.
NOTE:
PROSPECTIVE RESIDENTS ARE STRONGLY ENCOURAGED TO CONSIDER THE BENEFITS AND RISKS OF A CONTINUING CARE CONTRACT AND TO SEEK FINANCIAL AND LEGAL ADVICE BEFORE SIGNING A CONTINUING CARE CONTRACT.