Assisted Living Contract: What It Is and What to Check

An assisted living contract — also called a residency agreement or residency contract — is a legally binding agreement between a resident (or their legal representative) and an assisted living community. It sets out the monthly cost, the services included in that cost, how and when fees can rise, and the conditions under which either side can end the arrangement.

It is one of the largest recurring financial commitments a family takes on, and it is usually signed under time pressure. This guide explains what the contract contains, the terms that carry the most cost and risk, how to review one, and how to end it.

What an assisted living contract includes

Most residency agreements run many pages and cover the same core elements, though the wording and order vary by community and state:

• The parties — the resident's legal name and the community's legal entity (often a holding company, not the brand name).
• The apartment and base fee — the specific unit and its monthly rate, plus the list of what that rate includes (meals, housekeeping, utilities, some transportation).
• Care services and levels — how personal care and help with activities of daily living are assessed and priced, usually in tiers or points.
• Additional and third-party charges — medication management, second-person fees, incontinence supplies, escorts, and services billed by outside providers.
• Rate increases — how often fees can change, the notice given, and whether any cap applies.
• Move-in costs — community fee, deposits, and assessment fees, and which are refundable.
• Move-out and discharge — the notice each side must give, the grounds for an involuntary discharge, and refund rules.
• Legal terms — responsible-party language, arbitration clauses, liability limits, and the governing state.

Key terms to check before signing

A few clauses drive most of the cost and risk. Read these first:

• Base fee and inclusions — for the actual apartment, not the “starting at” price. Note anything described as “included” in one document and priced in another.
• Care-level pricing and triggers — the current tier, the full tier table, who decides changes, and how much notice precedes a higher charge.
• Rate-increase rights — frequency, notice period, and any stated maximum. Many agreements set none. See rate increases.
• Move-in fees and refunds — which are refundable and on what timeline. Check them against any written offer.
• Discharge criteria — the health conditions or behaviors that let the community end the agreement, and the notice you would get. See move-out and discharge terms.
• Responsible-party and guarantor language — whether anyone signing is agreeing to pay personally. See responsible-party clauses.
• Arbitration and waivers — these do not change the monthly bill but change what happens if something goes wrong.

The state disclosure document (UDALSA)

Some states require a community to hand over a standard disclosure before anyone signs. Minnesota's is the Uniform Disclosure of Assisted Living Services and Amenities (UDALSA): a required checklist of the license type, the services the facility offers and their limits, and staffing. It doesn't replace the contract — fees and the grounds for ending the agreement are set out in the contract itself. Other states use their own disclosure forms under other names. If your state requires one, it is a fast way to see what the community actually provides before you read the full contract; your state's assisted living licensing agency can tell you whether one applies.

How to review an assisted living contract

1. Gather every document as a set — the residency agreement, the fee schedule for the specific apartment, the care assessment, any written offer, and any state-required disclosure form (Minnesota's is the UDALSA; other states use their own). Review them together.
2. Pin down the true monthly cost — base fee for the actual apartment, plus the current care-level fee, plus every recurring add-on. Ignore the brochure price.
3. Read the rate-increase and care-level terms — notice period, any cap, and who controls a care-level change and its price.
4. Check move-out, discharge, and refund terms — resident notice to leave, grounds and notice for an involuntary discharge, and refunds for a mid-month move-out or hospital stay.
5. Flag the legal clauses — responsible-party language, arbitration or class-action waiver, governing state. Take unclear terms to an elder-law attorney.
6. Put open questions in writing — ask the community for written answers before anyone signs, and keep the replies with the contract.

How to get out of an assisted living contract

There are two ways a residency agreement ends: the resident chooses to leave, or the community discharges the resident.

If the resident is leaving: give written notice for the period the agreement requires — often 30 days — pay any balance through the notice period, and request a written accounting of refundable deposits and any proration. Some agreements prorate the final month; some do not.

If the community is discharging the resident: many states require written notice (frequently 30 days) and a stated reason tied to the discharge criteria, and some also require a safe, planned move — but protections vary widely, so check your state's rules (see contract rules by state). If the reason is non-payment, curing the balance may stop the discharge. Your state's Long-Term Care Ombudsman can help you challenge a discharge for free; a formal appeal goes through the state's hearing process, where one exists.

See how to get out of an assisted living contract for the step-by-step, and move-out and discharge terms for the clauses to check.

Is there a standard or sample assisted living contract?

There is no national standard form. Each community drafts its own agreement, though most states require certain items to be disclosed — pricing, included services, staffing, and discharge criteria. That is why the contract has to be read against the fee schedule and any written offer rather than on its own.

For a walkthrough, the assisted living contract sample guide has a free annotated sample residency agreement (PDF) with a note on what to check in every section. CareCheck's example report shows what a completed review looks like, built from a fictional facility's documents.

Who can help you review one

• Your state's Long-Term Care Ombudsman — a free advocate for residents; can explain rights and review a discharge.
• An elder-law attorney — for guarantor language, arbitration clauses, Medicaid planning, and anything that could create personal liability.
• Your state's assisted living licensing or health department — publishes the disclosure rules and inspection history for licensed communities.
• CareCheck — reads the agreement, fee schedule, and offer as one set, extracts every fee with its source, and gives you the questions to ask.

Frequently asked questions

Is an assisted living contract legally binding?

Yes. Once signed, a residency agreement is an enforceable contract. Assisted living is regulated at the state level, so some terms are shaped by state law, but the agreement itself binds both the resident and the community.

Is there a standard assisted living contract?

No. There is no national standard form. Each community writes its own agreement, though most states require certain disclosures — pricing, services, and discharge criteria — to be included. Always compare the contract against the fee schedule and any written offer.

Who signs an assisted living contract for a parent?

The resident signs if they are able. If a family member signs, they should sign as agent under a power of attorney — not as a personal guarantor — unless they intend to take on financial responsibility. Read the signature block carefully.

How do you get out of an assisted living contract?

Give written notice for the period the agreement requires (often 30 days), settle any balance, and request a written accounting of refundable deposits. If the community is discharging the resident, it must usually give written notice and a reason, and your state's Long-Term Care Ombudsman can help you challenge it for free. A formal appeal goes through the state's hearing process, where one exists.

Can an assisted living community raise the rent after you sign?

Almost always, yes. Most agreements allow annual increases with notice, and many set no maximum. Care-level fees can also rise mid-year if an assessment changes. Look for the notice period and any cap before you sign.

What is UDALSA?

UDALSA (Uniform Disclosure of Assisted Living Services and Amenities) is the disclosure checklist Minnesota requires an assisted living facility to give before a contract is signed. It lists the services the facility offers, their limits, and staffing. Fees and termination grounds are in the contract itself. Other states use their own disclosure forms under other names.

Related guides

• Assisted Living Contract Checklist — What to read before you sign, section by section.
• Assisted Living Contract Sample (with a free annotated PDF) — A free annotated sample PDF and a walkthrough of every section.
• How to Get Out of an Assisted Living Contract — The notice to give, what you may owe, and how refunds work.
• Assisted Living Hidden and Additional Fees — The charges that sit outside the advertised base rent.
• Responsible-Party and Guarantor Clauses — What you're agreeing to when you sign for a parent.

Sources

1. Compendium of Residential Care and Assisted Living Regulations and Policy: 2015 Edition Executive Summary — Office of the Assistant Secretary for Planning and Evaluation, U.S. Department of Health and Human Services
2. Sec. 144G.50 MN Statutes — Assisted Living Contract Requirements — Minnesota Office of the Revisor of Statutes
3. Uniform Disclosure of Assisted Living Services & Amenities (UDALSA) — Minnesota Department of Health
4. Sec. 144G.52 MN Statutes — Assisted Living Contract Terminations — Minnesota Office of the Revisor of Statutes
5. 42 U.S. Code § 3058g - State Long-Term Care Ombudsman program — Legal Information Institute, Cornell Law School
6. Managing Someone Else's Money: Help for agents under a power of attorney — Consumer Financial Protection Bureau