2023 South Carolina Code of Laws › Title 37 - Consumer Protection Code › Chapter 11 - Licensing And Regulation Of Continuing Care Retirement Communities › Section 37-11-35. Continuing care retirement community contracts and agreements.

(A) A continuing care contract and a reservation agreement must be in writing and must meet minimum standards for readability established by the department. Standards must include, but are not limited to, standards on general organization of text, text readability, type size, type style, type spacing, and general appearance of the contract. The contracts and agreements shall, at a minimum, be:
(1) printed in one hundred percent black ink with the exception of the operator's name and business logo;
(2) printed on stock that is at least eleven inches high and seven and one quarter inches wide;
(3) in print no smaller than ten-point type; and
(4) written in language customarily used and understood by people in the conduct of their personal affairs.
(B)(1) A reservation agreement must be entered into prior to the receipt of a reservation deposit and shall, at a minimum, include:
(a) the location, name, and address of the facility or proposed facility;
(b) information pursuant to Section 37-11-30(B)(5)-(7);
(c) the amount of money received and any rate of interest anticipated to be collected;
(d) a statement that the full reservation deposit and any corresponding interest accrued will be applied to the entrance fee at the time of executing the continuing care contract;
(e) a statement that the prospective resident has a right to cancel the agreement at any time for a full refund;
(f) the method of cancelling, the address where the prospective resident should submit the request to cancel and timeline for distribution of funds, not to exceed ten calendar days;
(g) a statement that the reservation deposit will be held in an escrow account at a trust institution;
(h) the name and contact information for the trust institution where the reservation deposit will be held;
(i) a description of the living unit reserved;
(j) a statement of the continuing care services currently offered by the operator at the time of signing the agreement and the continuing care services proposed to be offered in the future; and
(k) a proposed construction schedule, if applicable, and expected date when the reserved living unit will be available for occupancy.
(2) An operator may not receive or agree to a reservation deposit in excess of ten percent of the entrance fee for the prospective resident's reserved living unit.
(3) Every quarter the operator shall provide to the department and prospective residents who entered into a reservation agreement an update on the progress of facility development and expected date when the facility or reserved unit will be available for occupancy. If any major events occur that will delay the schedule by more than four weeks, the operator shall provide an update to the department and all prospective residents who entered into a reservation agreement no later than ten business days after the operator knew or should have known about the delay.
(C)(1) A continuing care contract clearly must state what portion, if any, of the entrance fee is refundable and nonrefundable. A contract must include a statement that:
(a) the resident has a right to cancel the contract within thirty days after signing; and
(b) if a resident dies before occupying a living unit in the facility or, if on account of illness, injury, or incapacity, a resident would be precluded from occupying a living unit in the facility under the terms of the contract for continuing care, the contract is automatically canceled.
(2) If the contract is canceled within thirty days, all money or property paid or transferred by the resident must be refunded fully, less those costs incurred by the community. If the living unit was available for occupancy, the community may charge a daily rate based on the usual monthly charge for that unit beginning on the eighth day after signing and ending on the day notice of cancellation is given to the community.
HISTORY: 1989 Act No. 97, Section 1; 2022 Act No. 197 (H.4983), Section 3, eff May 16, 2022.
Effect of Amendment
2022 Act No. 197, Section 3, rewrote the section.