Daytona Beach Senior AdvisorCan a Florida continuing care contract be cancelled after signing?
Yes: Chapter 651 gives a new resident the right to rescind the contract within seven days of signing or of paying any money, whichever is later, without penalty, and the provider must refund what was paid except for reasonable charges actually incurred.
A resident does not have to move in during that seven-day window. Use it to have the contract reviewed by an attorney or an adviser who is not paid by the community.
What happens to the entrance fee if someone dies or withdraws before moving in?
If a prospective resident dies, becomes unable to move in because of illness or injury, or cancels before occupancy, Chapter 651 requires the provider to refund the entrance fee, less limited costs the contract specifies.
Entrance fees and deposits collected before occupancy are generally subject to escrow requirements under s. 651.033, which protect them until the resident moves in.
How do refunds work after move-in?
After occupancy, refunds follow the schedule in the contract: some contracts refund a fixed percentage of the entrance fee regardless of length of stay, others decline over a set number of months to zero, and the law sets minimums for how the refund declines.
Ask whether a refund is paid when the resident leaves or only when the unit is resold, and how long that typically takes.
What must the contract spell out?
Florida requires the contract to describe the services and accommodations provided, the entrance and monthly fees, how and when fees may change, the refund terms, the conditions for moving to assisted living or nursing care, and what happens if care is provided off campus.
Read the sections on transfers to higher levels of care closely. They decide when a resident can be moved and whether the fee changes.
Who can review a contract before we sign?
An elder law attorney or financial adviser who is independent of the provider, and OIR's CCRC staff (850-413-3153) can answer questions about a provider's certificate and filings.
Ask the provider for its most recent annual disclosure statement and audited financial statements, which it must make available.
At a glance
| Chapter 651 gives residents | Chapter 651 does not give residents | |
|---|---|---|
| Cancellation | A 7-day rescission right | Unlimited time to back out free |
| Before move-in | Refunds if they die, fall ill or cancel | Interest on escrowed funds in every case |
| After move-in | Refunds per the contract schedule | A guaranteed full refund |
Sources: Chapters 408, 429 and 651, Florida Statutes; Florida Administrative Code chapters 59A-36 and 65A-2; publications of AHCA, DCF, OIR and the Department of Elder Affairs; and the CareScout and VA tables named on the page. See our editorial standards for how figures are checked.
