Senior living contract types differ in how your parent pays. Assisted living bills monthly under a residency agreement, with care priced all-inclusive, in tiers or a la carte. Continuing care retirement communities add an entrance fee under a Type A (life care), Type B (modified) or Type C (fee-for-service) contract. Some offer rental or condo plans. The type sets how fees rise, what's refunded and the notice to leave.
Key facts
- Pennsylvania requires assisted living contracts to run month-to-month with automatic renewal, ended by the resident with 14 days' notice or by the residence with 30 days' notice. (Pennsylvania Code, 2026)
- The National Center for Assisted Living tells families to ask which of three pricing models a community uses: all inclusive, tiered with bundled services, or fee for service (a la carte). (NCAL, 2025)
- A Type A (life care) CCRC contract includes unlimited use of health care services at little or no increase in the monthly fee, while a Type C (fee-for-service) contract charges market rates for all health care as it is needed. (U.S. GAO, 2010)
- In eight CCRCs the GAO reviewed in 2009, entrance fees ran from $160,000 to $600,000 for Type A contracts and from $1,800 to $30,000 for rental contracts. (U.S. GAO, 2010)
- In Florida, when a CCRC resident without a transferable membership or ownership right has moved in, the entrance fee refund is prorated, and the community can keep up to 2% for each month of occupancy plus a processing fee of up to 5%. (Florida Statutes, 2025)
You've narrowed it to two places. One is an assisted living community whose residency agreement renews every month. The other is a life plan community that wants an entrance fee and asks if your mom wants the Type A or the Type C contract. Sign without knowing the difference, and her bill can jump when her care needs grow, or her refund can wait until a new resident moves in.
This post puts the senior living contract types side by side: the monthly bill, price increases, care later, refunds and notice to leave. The last section lists the questions to ask before signing and who answers them.
This post explains how these contracts work. For decisions about a contract or money, talk with an elder law attorney or a financial planner.
What are the main senior living contract types?
Senior living contracts fall into two groups. Assisted living charges a monthly rate under a residency agreement. Continuing care retirement communities (CCRCs), also called life plan communities, add a large entrance fee and a long-term promise of housing and care. The GAO describes four CCRC contract types, and some communities sell condo or co-op units.
| Contract type | Paid up front | When care needs grow | Who carries the cost risk |
|---|---|---|---|
| Month-to-month assisted living agreement | Sometimes a one-time fee or deposit | All-inclusive: one rate. Tiered: a higher level. A la carte: a charge per added service. | Depends on the pricing model |
| CCRC Type A, life care | Substantial entrance fee ($160,000 to $600,000 in the GAO sample) | Little or no increase in the monthly fee | The community |
| CCRC Type B, modified | Entrance fee ($80,000 to $750,000) | Some care included, then market or discounted rates | Shared |
| CCRC Type C, fee-for-service | Entrance fee ($100,000 to $500,000) | Market rates for all care | Your parent |
| CCRC Type D, rental | Generally none, though the GAO sample showed $1,800 to $30,000 | Pay as you go | Your parent |
| Condo or co-op (equity) | A purchase price for the unit or a share | Ask what the monthly fee covers | Ask the community and an attorney |
The dollar ranges come from eight CCRCs the GAO reviewed in 2009, for one person. They show the pattern, so ask each community for its current fee schedule.
How does a month-to-month assisted living agreement work?
A month-to-month agreement renews by itself each month until someone ends it. Pennsylvania writes this into law. Its assisted living contracts "must run month-to-month with automatic renewal." The resident can end one with 14 days' notice. The residence needs 30 days' notice under the state's discharge rules.
The same rule lists what the contract must include:
- A fee schedule with the actual charge for each service in the core service package.
- The conditions for refunds, including admission fees and refunds after a death.
- The right to at least 30 days' written notice before the residence changes the contract.
Your parent can also cancel in writing within 72 hours of the first signature and pay only for services received. Other state steps are in the Pennsylvania assisted living rules.
Florida sets other numbers. The contract must give at least 30 days' written notice of a rate increase. It can't require more than 30 days' notice to leave. A refund for unused prepaid time is prorated and due within 45 days. Every state's rules are on our assisted living rules by state pages, and a one-time move-in charge is covered in the post on the assisted living community fee.
How is care priced in an assisted living agreement?
Care is priced in one of three ways. The National Center for Assisted Living (NCAL) tells families to ask which one a community uses:
- All inclusive. One monthly rate covers the care the agreement lists.
- Tiered with bundled services. Care is split into levels, each with a bundle of help such as bathing, medicines or dressing.
- Fee for service, or a la carte. Each service has its own price on top of the base rate.
Under tiered or a la carte pricing, the bill moves when care needs grow, even if the rent stays the same. Notice rules can treat that change differently. In Florida, the 30-day notice doesn't apply when a service your parent wasn't charged for before is added.
Ask how the community sets your parent's level of care. To compare quotes, see all-inclusive vs. tiered pricing. For yearly raises, see assisted living rent increases.
What are Type A, Type B and Type C contracts?
These are the three main CCRC contracts. Each splits the risk of future care costs differently, as the GAO describes:
- Type A, life care or extensive. Housing, services and unlimited use of health care, with little or no rise in the monthly fee as care needs grow. Entrance fees are generally substantial, and the community carries the risk of rising care costs.
- Type B, modified. Often a lower monthly fee than Type A, with only some care included. In the GAO's example, a resident gets 30, 60 or 90 days of assisted living or nursing care at no added charge. After that, they pay the market daily rate or a discounted one.
- Type C, fee-for-service. All health care is paid at market rates as it's needed. Fees may be lower at entry, and the risk of high care costs stays with your parent.
Names vary by state. New Jersey's guide calls them the All-Inclusive, Modified and Fee-for-Service Plans.
The GAO's 2009 sample shows the trade-off. Under Type A, monthly fees stayed at $2,500 to $5,400 at every level of care. Under Type C, $1,300 to $4,300 a month in independent living became $8,100 to $10,000 in nursing care. The CCRC basics, IRS rules and state regulators are in our guide to the continuing care retirement community.
What's the difference between refundable and declining entrance fees?
A refundable fee returns a set share of the entrance fee after your parent leaves or dies. A declining fee shrinks each month. The GAO lists four common refund plans:
- Fully refundable, which tends to cost more at the start and returns the full amount.
- Partly refundable, which returns a set percentage within time limits.
- Declining scale, where the refund drops by a set percentage each month.
- Nonrefundable after a certain time.
New Jersey's guide says fees with a permanent refund policy are generally higher than fees with a declining one.
State law can cap the decline. In Florida, once a resident has moved in, the refund follows time lived there. The community can keep up to 2% per month of occupancy, plus a processing fee of up to 5%. At the full 2%, nothing would be left after 50 months, a little over four years.
CCRC officials told the GAO that refunds usually depended on a new resident moving into the empty unit. Florida lets some contracts pay within 30 days after the next entrance fee for a similar unit comes in. Ask for the longest a refund can take, in writing.
How do rental and equity CCRCs work?
A rental contract, which the GAO calls Type D, generally has no entrance fee but still promises access to services and care. Your parent pays as they go, based on the unit size and the care given.
The GAO, citing industry data, says resident payment plans include "entrance fee, condo/co-op, and rental programs." In a condo or co-op, your parent buys an ownership interest. Florida's refund formulas above cover residents who don't receive "a transferable membership or ownership right." If your parent would own something, ask:
- Who can buy the unit when your parent leaves, and must the community approve the buyer?
- What does the monthly fee cover, including care?
- Does the monthly fee keep running until the unit sells?
How much notice does each contract need to leave?
State law and the contract set two windows: a short one to cancel after signing, and the notice to leave after move-in.
- Pennsylvania assisted living. Cancel in writing within 72 hours of the first signature. After that, 14 days' notice to leave.
- Florida assisted living. The contract can't require more than 30 days' notice to leave.
- Florida CCRC. Cancel within 7 days of signing for a full refund. After that, at least 30 days' written notice.
- New Jersey CCRC. Cancel without penalty within 30 days of signing. After moving in, 60 days' written notice.
The GAO, citing a 2009 industry handbook, found that 30 of the 38 states with CCRC laws required a cooling-off period. The windows ran from before move-in to as long as one year after. Once the window closes, the GAO warns, leaving can bring "significant fines or reductions" to the refundable part of the fee.
For notice from an assisted living apartment and avoiding two rents, see moving out of assisted living.
Questions to ask before signing, and who answers them
Ask the community first, then have someone outside it check. New Jersey's guide says to review a CCRC contract with a lawyer, a financial planner or both.
- Which contract type is this, and what happens to the monthly fee if my parent needs assisted living or nursing care? The community answers, and an elder law attorney checks the wording.
- Which pricing model applies, and what does each level or service cost today? The community, in a written fee schedule.
- How much notice comes before a rate increase or a care charge change? The contract, and the state licensing agency for the legal minimum.
- How much of the entrance or move-in fee comes back, and does the refund wait for a new resident? An elder law attorney.
- How long is the cancellation window, and what notice is needed after move-in? The state agency that oversees the contract.
- Who decides if my parent must change care levels or leave, and can we appeal? The contract, then the ombudsman.
- Is the CCRC on solid financial ground? Ask for the disclosure statement, the history of fee increases and the latest audited financial statements. An accountant or financial planner can read them.
Who the helpers are:
- The state agency. The assisted living licensing agency knows the notice and refund rules. CCRCs may answer to another office. In Pennsylvania, that is the Insurance Department, which issues their Certificate of Authority.
- The long-term care ombudsman. Its 53 state programs resolve problems with residents' rights and care in nursing homes and assisted living, and give the public information about long-term care.
- An elder law attorney. The CFPB says you can find one through the National Academy of Elder Law Attorneys (NAELA) or your local bar association. It adds that people 60 or older may qualify for free legal services.
Words for the email to the marketing director: "Before we pay a deposit, could you send the full contract for the type you quoted, the fee schedule for every care level and the refund terms? Please also tell us how much notice you give before a care charge changes. Our attorney will read everything first."
For a clause-by-clause review of an assisted living agreement, use the assisted living contract checklist.
Compare the communities before anyone signs
Parent Move Plan has 41 tour questions and a weighted comparison of 12 criteria, so you can score each community you visit side by side. Once you choose, it puts 79 tasks on real dates counted back from move-in day, in 30, 45 or 60-day versions. The Complete plan adds a shared costs log for the fees siblings split.
Get your first 3 days freeFrequently asked questions
Does a senior living contract include furniture?
It depends on the community, so ask before signing. The National Center for Assisted Living's checklist asks whether residents' rooms are furnished or unfurnished, and whether extra storage space costs more. Get the answer in writing before move-in day.
Can you cancel a senior living contract after signing?
Often there is a short window. In Pennsylvania, an assisted living contract can be canceled in writing within 72 hours of the first signature. A Florida continuing care contract can be canceled within 7 days for a full refund, and a New Jersey one within 30 days without penalty. The contract and the state agency can confirm the window for your parent's state.
Which CCRC contract type is best?
No type is best for everyone. The GAO says Type A contracts usually have substantial entrance fees but keep monthly fees steady as care needs grow, while Type C contracts may cost less at entry and leave the risk of high care costs with the resident. An elder law attorney or a financial planner can compare the types using your parent's health, money and plans.
Do assisted living communities charge entrance fees?
Some charge a one-time fee at move-in. NCAL's cost worksheet lists an entrance or initial assessment fee and tells families to ask whether deposits and entrance fees are refundable. In Pennsylvania, the assisted living contract must state the conditions for refunds, including refunds of admission fees.
Can the monthly fee go up under a life care contract?
Yes. A Type A contract keeps the monthly fee from rising much when a resident moves to assisted living or nursing care, but the fee can still go up over time. The GAO found that money trouble at a CCRC can lead to unexpected increases. In Florida, the contract must give at least 60 days' notice before any change in fees.
Sources
- U.S. GAO: Older Americans, Continuing Care Retirement Communities Can Provide Benefits, but Not Without Some Risk (GAO-10-611) (accessed Nov 2026)
- National Center for Assisted Living: Choosing an Assisted Living Community (2025) (accessed Nov 2026)
- Pennsylvania Code: 55 Pa. Code § 2800.25, Resident-residence contract (accessed Nov 2026)
- Florida Statutes 429.24 (2025): Contracts (assisted living facilities) (accessed Nov 2026)
- Florida Statutes 651.055 (2025): Continuing care contracts; right to rescind (accessed Nov 2026)
- New Jersey Department of Community Affairs: Continuing Care Retirement Communities, A Guide Book for the New Jersey Consumer (rev. 2018) (accessed Nov 2026)
- National Long-Term Care Ombudsman Resource Center: About Ombudsmen (accessed Nov 2026)
- CFPB: How can I find an attorney who specializes in elder law issues? (accessed Nov 2026)