{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-4904.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-4904.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-4904.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-4904.1.html"}],"law_id":66671,"edition_id":1,"section_id":66671,"structure_id":15908,"section_number":"38.2-4904.1","catch_line":"Escrow of entrance fee to continuing care providers and others","history":"1986, c. 598, \u00a7 38.1-959.1.","full_text":"A\n\nA provider shall maintain in escrow with a bank or trust company, or other escrow agent approved by the Commission, all entrance fees or portions thereof in excess of $1,000 per person received by the provider prior to the date the resident is permitted to occupy a unit in the facility. Funds or assets deposited therein shall be kept and maintained in an account separate and apart from the provider’s business accounts. For the purposes of this section only, the term “entrance fee” shall include within its meaning any advanced payment or series of advanced payments totaling $5,000 or more and the term “provider” shall include any person or entity that would be included in the definition thereof in § 38.2-4900 if such fee of $5,000 or more constituted an entrance fee for the purposes of the definition of “continuing care” in § 38.2-4900.B\n\nAll funds or assets deposited in the escrow account shall remain the property of the prospective resident until released to the provider in accordance with this section. The funds or assets shall not be subject to any liens, judgments, garnishments or creditor’s claims against the provider or facility. The escrow agreement may provide that charges by the escrow agent may be deducted from the funds or assets if such provision is disclosed in the disclosure statement.C\n\nAll funds or assets deposited in escrow pursuant to this section shall be released to the provider when the provider presents to the escrow agent evidence that a unit has been occupied by the resident or a unit of the type reserved is available for immediate occupancy by the resident or prospective resident on whose behalf the fee was received.D\n\nNotwithstanding any other provision of this section, all funds or assets deposited in escrow pursuant to this section shall be released according to the terms of the escrow agreement to the prospective resident from whom it was received (i) if such funds or assets have not been released within three years after placement in escrow or within three years after construction has started, whichever is later (but in any event within six years after placement in escrow unless specifically approved by the Commission), or within such longer period as determined appropriate by the Commission in writing, (ii) if the prospective resident dies before occupying a unit, (iii) if the construction of a facility, not yet operating is stopped indefinitely before the facility is completed or (iv) upon rescission of the contract pursuant to provisions in the contract or in this chapter. If construction of the unit to be reserved has not started within three years after the deposit of funds or assets into an escrow account, the prospective resident may require the return of such funds or assets unless the Commission determines that construction will begin in a reasonable period of time and the extension of such three-year period is appropriate. However, funds or assets subject to release under item (i) of this subsection or under subsection C of this section may be held in escrow for an additional period at the mutual consent of the provider and the prospective resident; however, the prospective resident may consent to such additional period only after his deposit has been held in escrow for at least two years. Item (i) above shall not apply if fees are refundable within thirty days of request for refund.E\n\nUnless otherwise specified in the escrow agreement, funds or assets in an escrow account pursuant to this section may be held in the form received or if invested shall be invested in instruments authorized for the investment of public funds as set forth in Chapter 45 (§ 2.2-4500 et seq.) of Title 2.2 and not in default as to principal or interest.F\n\nThis section shall not apply to entrance fees for initial occupancy of units under construction on June 30, 1986.G\n\nThis section shall not apply to application or reservation fees whether or not such fees are considered to be a portion of the entrance fee, provided such application or reservation fees are not in excess of $1,000 per person.","order_by":null,"text":{"0":{"id":241824,"text":"A provider shall maintain in escrow with a bank or trust company, or other escrow agent approved by the Commission, all entrance fees or portions thereof in excess of $1,000 per person received by the provider prior to the date the resident is permitted to occupy a unit in the facility. Funds or assets deposited therein shall be kept and maintained in an account separate and apart from the provider’s business accounts. For the purposes of this section only, the term “entrance fee” shall include within its meaning any advanced payment or series of advanced payments totaling $5,000 or more and the term “provider” shall include any person or entity that would be included in the definition thereof in § 38.2-4900 if such fee of $5,000 or more constituted an entrance fee for the purposes of the definition of “continuing care” in § 38.2-4900.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":241825,"text":"All funds or assets deposited in the escrow account shall remain the property of the prospective resident until released to the provider in accordance with this section. The funds or assets shall not be subject to any liens, judgments, garnishments or creditor’s claims against the provider or facility. The escrow agreement may provide that charges by the escrow agent may be deducted from the funds or assets if such provision is disclosed in the disclosure statement.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":241826,"text":"All funds or assets deposited in escrow pursuant to this section shall be released to the provider when the provider presents to the escrow agent evidence that a unit has been occupied by the resident or a unit of the type reserved is available for immediate occupancy by the resident or prospective resident on whose behalf the fee was received.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":241827,"text":"Notwithstanding any other provision of this section, all funds or assets deposited in escrow pursuant to this section shall be released according to the terms of the escrow agreement to the prospective resident from whom it was received (i) if such funds or assets have not been released within three years after placement in escrow or within three years after construction has started, whichever is later (but in any event within six years after placement in escrow unless specifically approved by the Commission), or within such longer period as determined appropriate by the Commission in writing, (ii) if the prospective resident dies before occupying a unit, (iii) if the construction of a facility, not yet operating is stopped indefinitely before the facility is completed or (iv) upon rescission of the contract pursuant to provisions in the contract or in this chapter. If construction of the unit to be reserved has not started within three years after the deposit of funds or assets into an escrow account, the prospective resident may require the return of such funds or assets unless the Commission determines that construction will begin in a reasonable period of time and the extension of such three-year period is appropriate. However, funds or assets subject to release under item (i) of this subsection or under subsection C of this section may be held in escrow for an additional period at the mutual consent of the provider and the prospective resident; however, the prospective resident may consent to such additional period only after his deposit has been held in escrow for at least two years. Item (i) above shall not apply if fees are refundable within thirty days of request for refund.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":241828,"text":"Unless otherwise specified in the escrow agreement, funds or assets in an escrow account pursuant to this section may be held in the form received or if invested shall be invested in instruments authorized for the investment of public funds as set forth in Chapter 45 (§ 2.2-4500 et seq.) of Title 2.2 and not in default as to principal or interest.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":241829,"text":"This section shall not apply to entrance fees for initial occupancy of units under construction on June 30, 1986.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":241830,"text":"This section shall not apply to application or reservation fees whether or not such fees are considered to be a portion of the entrance fee, provided such application or reservation fees are not in excess of $1,000 per person.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"ancestry":[{"id":15908,"edition_id":1,"name":"Registration of Continuing Care Providers","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":14288,"metadata":{},"date_created":"2026-06-26 04:01:42","date_modified":"2026-06-26 04:01:42","permalink":{"id":217357,"object_type":"structure","relational_id":15908,"identifier":"1","token":"38.2\/49\/1","url":"\/38.2\/49\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14288,"edition_id":1,"name":"Continuing Care Providers and Community-Based Continuing Care Providers","identifier":"49","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:47:37","date_modified":"2026-06-26 03:47:37","permalink":{"id":217355,"object_type":"structure","relational_id":14288,"identifier":"49","token":"38.2\/49","url":"\/38.2\/49\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":83470,"structure_id":15908,"section_number":"38.2-4900","catch_line":"Definitions","url":"\/38.2-4900\/","token":"38.2\/49\/1\/38.2-4900","metadata":false},{"id":84861,"structure_id":15908,"section_number":"38.2-4901","catch_line":"Registration","url":"\/38.2-4901\/","token":"38.2\/49\/1\/38.2-4901","metadata":false},{"id":69028,"structure_id":15908,"section_number":"38.2-4902","catch_line":"Disclosure statement","url":"\/38.2-4902\/","token":"38.2\/49\/1\/38.2-4902","metadata":false},{"id":61685,"structure_id":15908,"section_number":"38.2-4903","catch_line":"Availability of disclosure statement to prospective residents","url":"\/38.2-4903\/","token":"38.2\/49\/1\/38.2-4903","metadata":false},{"id":63774,"structure_id":15908,"section_number":"38.2-4904","catch_line":"Annual disclosure statements","url":"\/38.2-4904\/","token":"38.2\/49\/1\/38.2-4904","metadata":false},{"id":66671,"structure_id":15908,"section_number":"38.2-4904.1","catch_line":"Escrow of entrance fee to continuing care providers and others","url":"\/38.2-4904.1\/","token":"38.2\/49\/1\/38.2-4904.1","metadata":false},{"id":65856,"structure_id":15908,"section_number":"38.2-4905","catch_line":"Resident's contract","url":"\/38.2-4905\/","token":"38.2\/49\/1\/38.2-4905","metadata":false},{"id":78221,"structure_id":15908,"section_number":"38.2-4906","catch_line":"Repealed","url":"\/38.2-4906\/","token":"38.2\/49\/1\/38.2-4906","metadata":false},{"id":69644,"structure_id":15908,"section_number":"38.2-4910","catch_line":"Right of organization","url":"\/38.2-4910\/","token":"38.2\/49\/1\/38.2-4910","metadata":false},{"id":81292,"structure_id":15908,"section_number":"38.2-4911","catch_line":"Repealed","url":"\/38.2-4911\/","token":"38.2\/49\/1\/38.2-4911","metadata":false},{"id":62354,"structure_id":15908,"section_number":"38.2-4912","catch_line":"Special provisions for existing providers; rights of residents with certain existing providers","url":"\/38.2-4912\/","token":"38.2\/49\/1\/38.2-4912","metadata":false},{"id":84487,"structure_id":15908,"section_number":"38.2-4913","catch_line":"Repealed","url":"\/38.2-4913\/","token":"38.2\/49\/1\/38.2-4913","metadata":false},{"id":73529,"structure_id":15908,"section_number":"38.2-4917","catch_line":"Certain providers exempted","url":"\/38.2-4917\/","token":"38.2\/49\/1\/38.2-4917","metadata":false}],"previous_section":{"id":63774,"structure_id":15908,"section_number":"38.2-4904","catch_line":"Annual disclosure statements","url":"\/38.2-4904\/","token":"38.2\/49\/1\/38.2-4904","metadata":false},"next_section":{"id":65856,"structure_id":15908,"section_number":"38.2-4905","catch_line":"Resident's contract","url":"\/38.2-4905\/","token":"38.2\/49\/1\/38.2-4905","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-4904.1\/","history_text":"

This law was first created in 1986. The record of its establishment is cataloged in chapter 598 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1986 \u201cActs\u201d aren\u2019t available online.<\/p>","references":[{"id":83470,"section_number":"38.2-4900","catch_line":"Definitions","order_by":null,"url":"\/38.2-4900\/"}],"refers_to":[{"id":65575,"section_number":"2.2-4500","catch_line":"Legal investments for public sinking funds","order_by":null,"url":"\/2.2-4500\/"},{"id":83470,"section_number":"38.2-4900","catch_line":"Definitions","order_by":null,"url":"\/38.2-4900\/"}],"permalink":{"id":217379,"object_type":"law","relational_id":66671,"identifier":"38.2-4904.1","token":"38.2\/49\/1\/38.2-4904.1","url":"\/38.2-4904.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-4904.1\/","token":"38.2\/49\/1\/38.2-4904.1","dublin_core":{"Title":"Escrow of entrance fee to continuing care providers and others","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-4904.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A provider<\/span> shall maintain in escrow with a bank or trust company<\/span>, or other escrow agent approved by the Commission<\/span>, all entrance fees<\/span> or portions thereof in excess of $1,000 per person<\/span> received by the provider<\/span> prior to the date the resident<\/span> is permitted to occupy a unit in the facility<\/span>. Funds or assets<\/span> deposited therein shall be kept and maintained in an account separate and apart from the provider<\/span>’s business accounts. For the purposes of this section only, the term “entrance fee<\/span>” shall include within its meaning any advanced payment or series of advanced payments totaling $5,000 or more and the term “provider<\/span>” shall include any person<\/span> or entity that would be included in the definition thereof in § 38.2-4900<\/a> if such fee of $5,000 or more constituted an entrance fee<\/span> for the purposes of the definition of “continuing care<\/span>” in § 38.2-4900<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> All funds or assets<\/span> deposited in the escrow account shall remain the property of the prospective resident<\/span> until released to the provider<\/span> in accordance with this section. The funds or assets<\/span> shall not be subject to any liens<\/span>, judgments<\/span>, garnishments<\/span> or creditor<\/span>’s claims against the provider<\/span> or facility<\/span>. The escrow agreement may provide that charges by the escrow agent may be deducted from the funds or assets<\/span> if such provision is disclosed in the disclosure statement<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> All funds or assets<\/span> deposited in escrow pursuant to this section shall be released to the provider<\/span> when the provider<\/span> presents to the escrow agent evidence<\/span> that a unit has been occupied by the resident<\/span> or a unit of the type reserved is available for immediate occupancy by the resident<\/span> or prospective resident<\/span> on whose behalf the fee was received. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Notwithstanding any other provision of this section, all funds or assets<\/span> deposited in escrow pursuant to this section shall be released according to the terms of the escrow agreement to the prospective resident<\/span> from whom it was received (i) if such funds or assets<\/span> have not been released within three years after placement in escrow or within three years after construction has started, whichever is later (but in any event within six years after placement in escrow unless specifically approved by the Commission<\/span>), or within such longer period as determined appropriate by the Commission<\/span> in writing, (ii) if the prospective resident<\/span> dies before occupying a unit, (iii) if the construction of a facility<\/span>, not yet operating is stopped indefinitely before the facility<\/span> is completed or (iv) upon rescission of the contract<\/span> pursuant to provisions in the contract<\/span> or in this chapter. If construction of the unit to be reserved has not started within three years after the deposit of funds or assets<\/span> into an escrow account, the prospective resident<\/span> may require the return of such funds or assets<\/span> unless the Commission<\/span> determines that construction will begin in a reasonable period of time and the extension of such three-year period is appropriate. However, funds or assets<\/span> subject to release under item (i) of this subsection or under subsection C of this section may be held in escrow for an additional period at the mutual consent of the provider<\/span> and the prospective resident<\/span>; however, the prospective resident<\/span> may consent to such additional period only after his deposit has been held in escrow for at least two years. Item (i) above shall not apply if fees are refundable within thirty days of request for refund. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Unless otherwise specified in the escrow agreement, funds or assets<\/span> in an escrow account pursuant to this section may be held in the form received or if invested shall be invested in instruments authorized for the investment of public funds as set forth in Chapter 45 (§ 2.2-4500<\/a> et seq.) of Title 2.2 and not in default<\/span> as to principal or interest. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> This section shall not apply to entrance fees<\/span> for initial occupancy of units under construction on June 30, 1986. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> This section shall not apply to application or reservation fees whether or not such fees are considered to be a portion of the entrance fee<\/span>, provided such application or reservation fees are not in excess of $1,000 per person<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nESCROW OF ENTRANCE FEE TO CONTINUING CARE PROVIDERS AND OTHERS (\u00a7 38.2-4904.1)\n\nA. A provider shall maintain in escrow with a bank or trust company, or other\nescrow agent approved by the Commission, all entrance fees or portions thereof\nin excess of $1,000 per person received by the provider prior to the date the\nresident is permitted to occupy a unit in the facility. Funds or assets\ndeposited therein shall be kept and maintained in an account separate and apart\nfrom the provider’s business accounts. For the purposes of this section\nonly, the term “entrance fee” shall include within its meaning any\nadvanced payment or series of advanced payments totaling $5,000 or more and the\nterm “provider” shall include any person or entity that would be\nincluded in the definition thereof in § 38.2-4900 if such fee of $5,000 or\nmore constituted an entrance fee for the purposes of the definition of\n“continuing care” in § 38.2-4900.\n\nB. All funds or assets deposited in the escrow account shall remain the property\nof the prospective resident until released to the provider in accordance with\nthis section. The funds or assets shall not be subject to any liens, judgments,\ngarnishments or creditor’s claims against the provider or facility. The\nescrow agreement may provide that charges by the escrow agent may be deducted\nfrom the funds or assets if such provision is disclosed in the disclosure\nstatement.\n\nC. All funds or assets deposited in escrow pursuant to this section shall be\nreleased to the provider when the provider presents to the escrow agent evidence\nthat a unit has been occupied by the resident or a unit of the type reserved is\navailable for immediate occupancy by the resident or prospective resident on\nwhose behalf the fee was received.\n\nD. Notwithstanding any other provision of this section, all funds or assets\ndeposited in escrow pursuant to this section shall be released according to the\nterms of the escrow agreement to the prospective resident from whom it was\nreceived (i) if such funds or assets have not been released within three years\nafter placement in escrow or within three years after construction has started,\nwhichever is later (but in any event within six years after placement in escrow\nunless specifically approved by the Commission), or within such longer period as\ndetermined appropriate by the Commission in writing, (ii) if the prospective\nresident dies before occupying a unit, (iii) if the construction of a facility,\nnot yet operating is stopped indefinitely before the facility is completed or\n(iv) upon rescission of the contract pursuant to provisions in the contract or\nin this chapter. If construction of the unit to be reserved has not started\nwithin three years after the deposit of funds or assets into an escrow account,\nthe prospective resident may require the return of such funds or assets unless\nthe Commission determines that construction will begin in a reasonable period of\ntime and the extension of such three-year period is appropriate. However, funds\nor assets subject to release under item (i) of this subsection or under\nsubsection C of this section may be held in escrow for an additional period at\nthe mutual consent of the provider and the prospective resident; however, the\nprospective resident may consent to such additional period only after his\ndeposit has been held in escrow for at least two years. Item (i) above shall not\napply if fees are refundable within thirty days of request for refund.\n\nE. Unless otherwise specified in the escrow agreement, funds or assets in an\nescrow account pursuant to this section may be held in the form received or if\ninvested shall be invested in instruments authorized for the investment of\npublic funds as set forth in Chapter 45 (§ 2.2-4500 et seq.) of Title 2.2\nand not in default as to principal or interest.\n\nF. This section shall not apply to entrance fees for initial occupancy of units\nunder construction on June 30, 1986.\n\nG. This section shall not apply to application or reservation fees whether or\nnot such fees are considered to be a portion of the entrance fee, provided such\napplication or reservation fees are not in excess of $1,000 per person.\n\nHISTORY: 1986, c. 598, \u00a7 38.1-959.1.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}