44-6954. Senior residential entrance fee contracts; offer; rescission; disclosure

A. A person shall not solicit or enter into or extend the term of a senior residential entrance fee contract as a provider except pursuant to this chapter and after registering with the department as provided in section 44-6952.

B. The senior residential entrance fee contract, or an application agreement if a contract is contemplated to be signed thereafter, shall provide that any person who enters into the contract or application agreement has a period of seven days to rescind the contract or application agreement without penalty or further obligation. The seven days begins on the first full calendar day after the last to occur of any of the following events:

1. The execution of the contract or application agreement, whichever occurs first, if the proposed form of contract is provided to the person at the time the application agreement is executed.

2. The payment of an initial sum of money as a deposit or application fee.

3. Receipt of the disclosure statements and contents prescribed in subsection D of this section.

C. If a rescission occurs, the provider shall fully refund all monies or property paid or transferred by the person. A facility shall not require a person to move into a facility until after the expiration of the seven day rescission period.

D. At or before the execution of a senior residential entrance fee contract and the transfer of any money or other property to a provider pursuant to a contract, the provider shall deliver to the person who is executing the senior residential entrance fee contract both of the following:

1. A copy of the provider's most recent certified statement of operations and balance sheet prepared according to generally accepted accounting principles.

2. A disclosure statement that is not longer than two printed pages, that is in plain English and that provides in clear and conspicuous type the following information:

(a) The name of the facility.

(b) The name of the owner of the facility.

(c) The amount of the entrance fee.

(d) The portion of the entrance fee that is or may be refundable to the resident and the terms on which the refund is to be made.

(e) Whether, and by what method, the refundable portion of the entrance fee is insured, guaranteed, secured or otherwise provided for.

(f) A statement that a person who has complaints about an entrance fee contract may contact the consumer fraud section of the attorney general's office.