Assisted living contracts can be a minefield. You want the best for your loved one, but the fine print can hide some nasty surprises. Many families sign these agreements without realizing what’s buried inside. Some clauses can cost you thousands or even put your loved one at risk. It’s easy to feel overwhelmed by legal jargon and pressure from sales staff. That’s why it’s so important to know what to look for before you sign an assisted living contract.
Below are seven predatory clauses you might find in assisted living contracts. Each one can have a big impact on your finances, your rights, and your peace of mind. Here’s what you need to watch out for—and what you can do about it.
1. Mandatory Arbitration Clauses
Many assisted living contracts include a mandatory arbitration clause. This means if you have a dispute with the facility, you can’t take them to court. Instead, you have to use a private arbitrator. Arbitration often favors the company, not the resident. You lose your right to a jury trial, and the process is usually confidential. This can make it hard to hold the facility accountable for serious problems, like neglect or abuse. If you see this clause, ask if it can be removed. If not, consider looking elsewhere.
2. “Responsible Party” Payment Clauses
Some contracts require a family member or friend to sign as a “responsible party.” This means you could be on the hook for bills if your loved one can’t pay. Even if you’re just helping with paperwork, you might end up legally responsible for thousands in unpaid fees. Don’t sign as a responsible party unless you fully understand the risks. If the facility insists, ask if you can sign only as a “designated representative” instead. This limits your liability.
3. Non-Refundable Community Fees
A lot of assisted living contracts charge a hefty “community fee” up front. These fees can be several thousand dollars and are often non-refundable, even if your loved one moves out after a short time. Some contracts don’t make this clear. Always ask if the fee is refundable and under what conditions. Get the answer in writing. If the fee is non-refundable, think twice before signing. You could lose a lot of money if things don’t work out.
4. Automatic Rent Increases
Watch out for clauses that allow the facility to raise rent automatically, sometimes with little notice. Some contracts let them increase fees every year—or even more often—without a cap. This can make budgeting impossible. Ask for a clear explanation of how and when rent can go up. Try to negotiate a cap on increases or at least require advance notice. If the contract is vague, you could face big surprises down the road.
5. Waivers of Liability for Negligence
Some contracts try to limit the facility’s responsibility for harm caused by its own negligence. This means if your loved one is injured because of staff mistakes, the facility might not be held accountable. These waivers are often buried in the fine print. They may not always be enforceable, but fighting them in court is tough and expensive. Never agree to a contract that asks you to waive your right to hold the facility responsible for neglect or abuse.
6. Forced Move-Out Clauses
Some contracts give the facility broad power to evict residents with little notice. The reasons can be vague, like “disruptive behavior” or “care needs exceed our capabilities.” This puts residents at risk of being forced out with nowhere to go. Ask for clear language about when and how a resident can be asked to leave. Make sure the contract requires reasonable notice and a fair process. Don’t sign if the facility can evict for almost any reason.
7. Restrictions on Visitors and Communication
Several contracts include rules that limit when and how residents can have visitors or communicate with their family. This can be especially hard on residents who rely on family support. Some facilities use these rules to control complaints or limit oversight. Ensure the contract protects your loved one’s right to receive visitors and maintain contact. If you encounter restrictions, request that they be removed or clarified.
Protecting Yourself From Predatory Assisted Living Contracts
Assisted living contracts are full of legal language, but you don’t have to be a lawyer to protect yourself. Read every word, and don’t be afraid to ask questions. If something doesn’t make sense, ask for it in plain language. Never sign under pressure. Take the contract home and review it with someone you trust. If you spot any of these predatory clauses, push back or walk away. There are good facilities out there that don’t rely on unfair terms. Your loved one’s safety and your financial security are worth the extra effort.
Have you ever found a hidden clause in an assisted living contract? Share your story or advice in the comments below.
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