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Title: Section 903.6 - Priority reservation fees and agreements

Effective Date

07/27/1994

Section 903.6 Priority reservation fees and agreements.

(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 two thousand dollars 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 two hundred and fifty dollars.

(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;

(10) a statement of the refund policy pertaining to priority reservation application fees; and

(11) in the case of a proposed community, the following notices in bold twelve 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 twelve 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.
 

Volume

VOLUME E (Title 10)

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