An assisted living contract is usually called the residency agreement or admission agreement. It sets what your parent pays, what the base rate includes, how fees can rise, and when the community can ask your parent to leave. Before you sign, check who signs and in what role. Then check the fee schedule, the notice period for rate increases, level-of-care charges, move-out and refund terms, and any arbitration clause.
Key facts
- Oregon's rules say the residency agreement must cover payment terms, deposits, fees that can't be refunded, refund terms, how rates change, what services are offered and the reasons a resident may have to move out. (Oregon Administrative Rules, n.d.)
- Oregon's rules require 30 days' written notice of rate increases that apply to all residents. (Oregon Administrative Rules, n.d.)
- California Advocates for Nursing Home Reform notes that in California, a community may not charge fees once all of the resident's belongings have been removed from the room. (CANHR, n.d.)
- California Advocates for Nursing Home Reform warns that a clause requiring arbitration of all disputes can take away a resident's right to go to court. (CANHR, n.d.)
- A 2017 Consumer Reports article warned that vague discharge language lets management decide case by case and suggested asking for specific reasons. (Consumer Reports, 2017)
The agreement often shows up at the end of a long day. It's a thick packet with a pen on top, and the move-in date feels close. It is also the one document that decides what happens when your parent's needs change, when the rent goes up, or when the family wants to leave.
This post goes through the contract one clause at a time, with a question to ask for each. It explains what to look for and isn't legal advice. If anything is unclear, an elder law attorney in your parent's state can tell you what the terms mean under local law.
What is the assisted living contract called, and when should you ask for it?
It goes by several names: residency agreement, admission agreement, resident agreement or service agreement. Sometimes it comes with a separate fee schedule and a resident handbook. Ask for a blank copy of all of them at the first tour, before you pay any deposit.
The National Consumer Voice for Quality Long-Term Care says to ask for the contract and read it with care. You want to see exactly what will be provided and which fees you must pay. (It notes that "community service" fees are often required.) You also want to know when a resident may be asked to leave.
Some states spell out what the agreement must cover. Oregon's rules, for example, say the residency agreement must cover payment terms, deposits, fees that can't be refunded, and the terms for any refund. It must also say how rates change, what services are offered and the reasons a resident may have to move out. Your state's rules may say more or less, which is one more reason to read every page.
How should you review the agreement?
Give yourself a few days. Read it at home, and turn every unclear point into a written question.
- Get the full set early. That means the agreement, the fee schedule, the level-of-care or assessment policy, the resident handbook, and any addenda (extra pages for things like pets, arbitration or a photo release).
- Read with two highlighters. Use one color for anything that costs money. Use the other for anything that lets the community change the terms or ask your parent to leave.
- Write your questions in one list, with the page and section number for each.
- Get answers in writing. A spoken "don't worry about that clause" isn't part of the contract. Ask for a corrected page or a signed addendum.
- Decide on outside review. The National Center for Assisted Living (NCAL) makes the point in its checklist for before you sign. If you don't understand the contract, have someone explain it to you. For arbitration, who owes the bill, or move-out terms, that someone is usually an elder law attorney. Our list of questions for an elder law attorney helps you use that meeting well.
What should you check, clause by clause?
| Clause | What to look for | Question to ask |
|---|---|---|
| Parties and signatures | Whether a family member is named as "responsible party" or guarantor | "In what capacity am I signing, and am I personally liable for charges?" |
| Base rate and services | A written list of what the monthly rate includes | "Which services on your fee schedule are not in the base rate?" |
| Care charges | How care levels or points are assessed and priced | "Who does the assessment, how often, and can we see the results?" |
| Rate increases | Notice period and how often rates change | "How much notice do you give, and how much have rates risen in recent years?" |
| One-time fees and deposits | Community fee, deposit, and whether any part is refundable | "Under what conditions is any part refunded, and on what schedule?" |
| Absences | Hospital, rehab or nursing home stays | "Is the apartment held, what do we pay, and are unused meals credited?" |
| Move-out by the community | Specific reasons and notice period | "Show me the list of reasons a resident can be asked to leave." |
| Move-out by your parent | Notice required, charges after moving out, refund timing | "If we give notice today, what do we owe and when is any refund paid?" |
| Death | Charges after death, removing belongings | "When do charges stop, and how long do we have to clear the apartment?" |
| Money running out | Medicaid participation, policy when savings are spent | "What happens if my parent's funds run out? Can they stay on Medicaid?" |
| Disputes | Arbitration clause, liability waivers, grievance procedure | "Is arbitration a condition of admission? Where is the grievance process?" |
| Changes to the agreement | How and with what notice the community can amend terms | "How will you notify us of changes, and how far in advance?" |
Put the contract review on the calendar
Parent Move Plan puts touring, comparing and deciding on real dates counted back from move-in day, so reading the agreement isn't squeezed into the last few days. Contract terms (fees, increases, notice period) are one of the 12 weighted criteria in its comparison, so the fine print counts before you choose.
Get your first 3 days freeWho signs the agreement, and as what?
Check the signature page before anything else. Look at whether a family member signs only on your parent's behalf, or also agrees to pay the bill personally.
California Advocates for Nursing Home Reform (CANHR) warns about this. If someone other than the resident signs, they should make sure they don't become a "legally responsible party" who is personally responsible for the community's fees. In a 2017 article on assisted living contracts, Consumer Reports quoted an elder law attorney. The advice was for family members to be named as an agent rather than the responsible party.
How this works depends on the wording, your state's law, and papers such as a power of attorney. If the page names you as guarantor or "responsible party", ask an elder law attorney before you sign.
When you get to the signature page, you could ask: "Before we sign, could you show me every place where I'm named? I'd like the agreement to say I'm signing as my mother's agent under her power of attorney, not as a guarantor. If that needs a different form, please send it to me."
What should you check about rate increases and level-of-care charges?
Look for two separate ways the price can go up. One is a rise in everyone's rate. The other is a rise because your parent's care needs change. The two usually follow different rules.
- General increases. California law requires at least 90 days' prior written notice of a rate increase. The notice must state the amount and the reason. Increases due to a change in a resident's level of care are exempt. Oregon's rules require 30 days' written notice of increases for all residents. When a change in a resident's service plan changes their own rate, Oregon requires written notice right away.
- Level-of-care increases. CANHR suggests asking to see the process, the criteria and the assessment results used to decide a change in care level. Ask how often your parent will be reassessed. Also ask if you'll be told before or after the new rate starts.
- History. NCAL's checklist says to find out when fees might change and how much notice families get. Ask the community for its rate increases over the past few years, in writing.
How care levels are set and priced is its own topic. See assisted living levels of care. For what to expect from yearly increases once your parent lives there, see assisted living rent increases.
What should you check about move-out, refunds and arbitration?
These clauses matter least on move-in day and most on the day something changes, so read them slowly.
When the community can ask your parent to leave. A Consumer Reports article warned that vague discharge language lets management decide case by case. It suggested asking for specific reasons. State rules set limits. In California, for example, a licensee may give a 30-day notice for several reasons. One is not paying the basic rate within 10 days of the due date. Another is not following state or local law or the community's policies. A third is a need, found in a new review (a reappraisal), that the community can't meet.
When your parent leaves. Check the notice your parent must give, what you're charged after moving out, and how one-time fees are refunded. Our posts on the assisted living community fee and on move-out notice periods and refunds go deeper.
If your parent dies. Look for when charges stop. CANHR notes that in California, a community may not charge fees once all of the resident's belongings have been removed from the room.
If money runs out. Consumer Voice suggests asking what happens if the money runs out. If a community says your parent can stay and use Medicaid for the whole stay, get that in writing.
Arbitration and waivers. CANHR warns that a clause requiring arbitration of all disputes can take away a resident's right to go to court, such as by filing a lawsuit. Oregon's rules say the residency agreement can't make residents give up their rights under state rules. Whether an arbitration clause is optional, and what it means for your parent, is a question for an elder law attorney.
Rules and prices differ by state. Assisted living rules and costs by state lists the medical exam, TB test, move-out notice, Medicaid and the median monthly cost for all 50 states, with sources.
Frequently asked questions
Can you negotiate an assisted living contract?
You can always ask. Send your questions in writing before you sign, and ask if items such as a one-time fee or the move-in date are flexible. If the community agrees to a change, get it in writing, either in the agreement itself or in a signed addendum.
Should an attorney review the assisted living agreement?
It's worth considering, especially if the agreement includes an arbitration clause, makes a family member financially responsible, or is unclear about move-out conditions and refunds. An elder law attorney can explain what the terms mean under your state's law. This post only covers what to look for.
How much notice does assisted living have to give before raising rates?
It depends on the state and the contract. California requires at least 90 days' written notice for rate increases, except increases due to a change in a resident's level of care. Oregon requires 30 days' notice for increases that apply to all residents. Your agreement should state the notice period in writing.
What happens to the contract if my parent goes to the hospital?
Check the agreement for how absences are handled. NCAL suggests asking whether the room is held during a hospital or nursing home stay, what it costs, and whether there is a discount for services not used, such as meals.
Sources
- National Center for Assisted Living: Choosing an Assisted Living Community, a consumer's guide (2025) (accessed Sept 2026)
- National Consumer Voice for Quality Long-Term Care: How to Select an Assisted Living Facility (2013) (accessed Sept 2026)
- California Advocates for Nursing Home Reform: RCFEs, Admission Agreements (accessed Sept 2026)
- Consumer Reports: Putting the Assisted Living Facility Contract Under a Microscope (2017) (accessed Sept 2026)
- California Legislative Information: Health and Safety Code section 1569.655 (accessed Sept 2026)
- Oregon Administrative Rules: OAR 411-054-0026, Disclosure and Notification to Potential Residents (accessed Sept 2026)
- National Center for Assisted Living: California, Assisted Living State Regulatory Review (2026) (accessed Sept 2026)