                                 CODE OF VIRGINIA

RESIDENT&#8217;S CONTRACT (§ 38.2-4905)

A. In addition to other provisions considered proper to effect the purpose of
any continuing care contract, each contract executed on or after July 1, 1985,
shall:

   1. Provide for the continuing care of only one resident, or for two or more
   persons occupying space designed for multiple occupancy, under appropriate
   regulations established by the provider.

   2. Show the value of all property transferred, including donations,
   subscriptions, fees and any other amounts paid or payable by, or on behalf of,
   the resident or residents.

   3. Specify all services which are to be provided by the provider to each
   resident including, in detail, all items that each resident will receive and
   whether the items will be provided for a designated time period or for life.
   Such items may include, but are not limited to, food, shelter, nursing care,
   drugs, burial and incidentals.

   4. Describe the physical and mental health and financial conditions upon which
   the provider may require the resident to relinquish his space in the
   designated facility.

   5. Describe the physical and mental health and financial conditions required
   for a person to continue as a resident.

   6. Describe the circumstances under which the resident will be permitted to
   remain in the facility in the event of financial difficulties of the resident.

   7. State (i) the current fees that would be charged if the resident marries
   while at the designated facility, (ii) the terms concerning the entry of a
   spouse to the facility and (iii) the consequences if the spouse does not meet
   the requirements for entry.

   8. Provide that the provider shall not cancel any continuing care contract
   with any resident without good cause. Good cause shall be limited to: (i)
   proof that the resident is a danger to himself or others; (ii) nonpayment by
   the resident of a monthly or periodic fee; (iii) repeated conduct by the
   resident that interferes with other residents&#8217; quiet enjoyment of the
   facility; (iv) persistent refusal to comply with reasonable written rules and
   regulations of the facility; (v) a material misrepresentation made
   intentionally or recklessly by the resident in his application for residency,
   or related materials, regarding information which, if accurately provided,
   would have resulted in either a failure of the resident to qualify for
   residency or a material increase in the cost of providing to the resident the
   care and services provided under the contract; or (vi) material breach by the
   resident of the terms and conditions of the continuing care contract. If a
   provider seeks to cancel a contract and terminate a resident&#8217;s
   occupancy, the provider shall give the resident written notice of, and a
   reasonable opportunity to cure within a reasonable period, whatever conduct is
   alleged to warrant the cancellation of the agreement. Nothing herein shall
   operate to relieve the provider from duties under the Virginia Residential
   Landlord and Tenant Act (&#xA7; 55.1-1200 et seq.) when seeking to terminate a
   resident&#8217;s occupancy.

   9. Provide in clear and understandable language, in print no smaller than the
   largest type used in the body of the contract, the terms governing the refund
   of any portion of the entrance fee and the terms under which such fee can be
   used by the provider.

   10. State the terms under which a contract is cancelled by the death of the
   resident. The contract may contain a provision to the effect that, upon the
   death of the resident, the money paid for the continuing care of such resident
   shall be considered earned and become the property of the provider.

   11. Provide for at least 30 days&#8217; advance notice to the resident, before
   any change in fees, charges or the scope of care or services may be effective,
   except for changes required by state or federal assistance programs.

   12. Provide that charges for care paid in one lump sum shall not be increased
   or changed during the duration of the agreed upon care, except for changes
   required by state or federal assistance programs.

B. A resident shall have the right to rescind a continuing care contract,
without penalty or forfeiture, within seven days after making an initial deposit
or executing the contract. A resident shall not be required to move into the
facility designated in the contract before the expiration of the seven-day
period.

C. If a resident dies before occupying the facility, or is precluded through
illness, injury or incapacity from becoming a resident under the terms of the
continuing care contract, the contract is automatically rescinded and the
resident or his legal representative shall receive a full refund of all money
paid to the provider, except those costs specifically incurred by the provider
at the request of the resident and set forth in writing in a separate addendum,
signed by both parties to the contract.

D. No standard continuing care contract form shall be used in this Commonwealth
until it has been submitted to the Commission. If the Commission determines that
the contract does not comply with the provisions of this chapter, it shall have
the right to take action pursuant to &#xA7; 38.2-4931 to prevent its use. The
failure of the Commission to object to or disapprove of any contract shall not
be evidence that the contract does or does not comply with the provisions of
this chapter. However, individualized amendments to any standard form need not
be filed with the Commission.

HISTORY: 1985, c. 554, § 38.1-960; 1986, cc. 562, 598; 2012, cc. 208, 303.