An assisted living contract, usually called the residency or admission agreement, sets what your parent pays, what the base rate includes, how fees can rise, and when the community can ask them to leave. Before signing, check who signs and in what role, the fee schedule, the rate increase notice period, level-of-care charges, move-out and refund terms, and any arbitration clause.
The agreement usually arrives at the end of a long day, as a thick packet with a pen on top and a move-in date that 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 is a clause-by-clause checklist with the question to ask for each one. It explains what to look for; it isn't legal advice. For anything 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 with a separate fee schedule and resident handbook. Ask for a blank copy of all of them at the first tour, before any deposit.
The National Consumer Voice for Quality Long-Term Care advises asking for the contract and reviewing it carefully to see exactly what will be provided, which fees you must pay (it notes that "community service" fees are often required), and when a resident may be asked to leave.
Some states spell out what the agreement must cover. Oregon's rules, for example, require the residency agreement to address payment terms, deposits and non-refundable fees, refund conditions, how rates change, the services available and the criteria for moving out. Your state's rules may be more or less detailed, 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. Agreement, fee schedule, level-of-care or assessment policy, resident handbook, and any addenda (pets, arbitration, photo release).
- Read with two highlighters. One color for anything that costs money; another for anything that lets the community change 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 verbal "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) puts it simply in its pre-signing checklist: if you don't understand the contract, have someone explain it to you. For arbitration, financial responsibility 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.
Build your plan in 2 minutesWho signs the agreement, and as what?
Check the signature page before anything else. The question is whether a family member signs only on your parent's behalf, or takes on personal responsibility for the bill.
California Advocates for Nursing Home Reform (CANHR) warns that 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 facility's fees. Consumer Reports, in a 2017 article on assisted living contracts, quoted an elder law attorney advising family members to be identified as an agent rather than the responsible party.
How this works depends on the wording and your state's law, and on documents such as a power of attorney. Ask an elder law attorney before you sign if the page names you as guarantor or "responsible party".
What to say: "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 mechanisms: increases to everyone's rate, and increases because your parent's care needs change. They usually follow different rules.
- General increases. California law requires at least 90 days' prior written notice of a rate increase, stating the amount and the reason, but exempts increases due to a change in a resident's level of care. Oregon's rules require 30 days' written notice of facility-wide increases, and immediate written notice of individual rate changes that result from a change in the service plan.
- Level-of-care increases. CANHR recommends asking to review the process, criteria and assessment results used to decide a change in care level. Ask how often reassessments happen and if you'll be told before or after the new rate applies.
- History. NCAL's checklist includes knowing the circumstances under which fees might change and how much notice families get. Ask for the community's 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 once you're living with annual increases, 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, and suggested asking for specific reasons. State rules set limits. In California, for example, a licensee may give a 30-day notice for reasons that include nonpayment of the basic rate within 10 days of the due date, failure to comply with state or local law or facility policies, or a need identified in a reappraisal that the facility can't meet.
When your parent leaves. Check the notice your parent must give, what is 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 facility may not charge fees once all of the deceased resident's personal property has been removed from the room.
If money runs out. Consumer Voice suggests asking what happens if funds run out, and getting it in writing if a community says your parent can stay and use Medicaid for the whole stay.
Arbitration and waivers. CANHR cautions that clauses requiring arbitration of all disputes can remove a resident's right to take legal action such as filing a lawsuit. Oregon's rules say the residency agreement can't require residents to waive 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.
Frequently asked questions
Can you negotiate an assisted living contract?
You can always ask. Send your questions in writing before signing, and ask directly 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 explains what to look for, not what to sign.
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 facility-wide increases. 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)