Current through Register Vol. 46, No. 12, March 20, 2024
(a) A prospective resident shall have the right
to cancel the priority reservation agreement upon written notification to the
prospective applicant, applicant or operator and/or to the escrow
agent.
(b) A prospective applicant,
applicant or operator shall have the right to cancel the priority reservation
agreement upon written notification to the prospective resident or his/her
representative and to the escrow agent.
(c) Priority reservation fees may not exceed
$2,000 and must be deposited directly with an escrow agent pursuant to section
903.5
of this Part.
(d) Priority
reservation application fees collected from prospective residents upon
application for a priority reservation may not exceed $250.
(e) Priority reservation fees may only be
collected pursuant to a written priority reservation agreement between the entity
authorized to enter into such agreements pursuant to section
903.4
of this Part and a prospective resident or a prospective resident's legal
representative and only upon issuance of such agreement to the prospective
resident or his or her legal representative.
(f) The priority reservation agreement must
include at a minimum, the following information:
(1) the name and location of the community or
the proposed community;
(2) the name
and address of the prospective applicant or applicant, or in the case of an
existing community operating under a certificate of authority, the
operator;
(3) the name, address and
phone number of a contact person;
(4)
the name and address of the person paying the reservation fee;
(5) the name and address of the escrow
agent;
(6) the type of unit being
reserved;
(7) the estimated entrance
fee and monthly fee clearly identified as an estimate or in the case of an
existing community operating under a certificate of authority, the current
entrance fee and monthly fee with a statement indicating that these fees are
subject to change and may be changed by the time the prospective resident enters
into a life care contract with the operator;
(8) the signature of the person paying the
reservation fee and the signature of the prospective applicant or applicant,
operator or their agent;
(9) a
statement of the effective period of the agreement not to exceed the duration of
the commissioner's authorization pursuant to section
903.4(c)
of this Part; and
(10) a statement of
the refund policy pertaining to priority reservation application fees;
(11) in the case of a proposed community, the
following notices in bold 12- point type:
(i)
the cancelable priority reservation agreement does not obligate the person
entering into the agreement in any way;
(ii) there is no guarantee by the prospective
applicant or applicant, that the fees estimated in the agreement will not
change;
(iii) the community described
is only a proposed community and any model units are only representative of units
in a proposed community which is subject to a formal submission of a certificate
of authority application by the prospective applicant or applicant, and its
subsequent approval or disapproval by the Life Care Community Council;
(iv) there is no guarantee that the unit
described in the agreement or represented by any model unit will be built or
otherwise made available as described or at all;
(v) the person paying the priority reservation
fee may receive a refund of the fee with interest earned at the prevailing rates
upon request; and
(vi) should a
certificate of authority be issued by the Life Care Community Council to the
prospective applicant or applicant, the prospective resident shall be entitled on
a priority basis to apply the reservation fee to an actual entrance fee or
entrance fee deposit on a unit not already under contract; and
(12) in the case of an existing
community operating under a certificate of authority, the following notices in
bold 12-point type:
(i) the cancelable priority
reservation agreement does not in any way obligate the person entering into the
agreement;
(ii) there is no guarantee
by the operator that the current fees set forth in the reservation agreement will
not change;
(iii) the person paying
the priority reservation fee may receive a refund of the fee with interest
accrued at the prevailing rates upon request; and
(iv) the person paying the fee shall be
entitled on a priority basis to apply the reservation fee to an actual entrance
fee or entrance fee deposit on a unit not already under contract.