25 Questions to Ask Before Signing an Assisted Living Contract (2026 Guide)
Updated January 2026 · 24 min read
Quick Answer
Before signing an assisted living contract, ask about: what is included in the base monthly rate and all add-on charges; the care level fee structure and reassessment process; rate increase provisions and history; staffing ratios and nurse availability; the maximum care level the community can provide; memory care availability; the bed hold policy during hospitalization; what happens if the resident runs out of money; the move-out notice requirements; the grounds for discharge; and the refund policy for all fees. Take the contract home, read it fully, and consider having an elder law attorney review it before signing.
Why Contracts Are Signed Under Pressure — and Why That's Dangerous
Assisted living contracts are typically signed during some of the most stressful periods a family can experience — after a hospitalization, in the middle of a care crisis, or at the end of an emotionally exhausting search process. The sales team is warm and reassuring. The community looks beautiful. The pressure to make a decision is real. And the contract — often 20 to 40 pages of dense legal language — gets signed without being fully read or understood.
This is one of the most consequential financial and legal decisions a family can make. The contract governs everything: what services are provided, what they cost, how costs can increase, when the community can require a resident to leave, and what happens to your money if circumstances change. Understanding it fully before signing is not optional — it is essential.
The 25 questions in this guide are organized into six categories: costs, care, future needs, moving out, resident rights and safety, and dining and lifestyle. Use them during your contract review and before your final decision. Take the contract home. Read it. Ask questions. And if something is unclear or concerning, ask for clarification in writing — or walk away.
Important: Never sign an assisted living contract at the end of a tour under sales pressure. Take the contract home, read it fully, and consider having an elder law attorney review it before signing. The cost of an attorney review is modest compared to the financial commitment involved.
What Is an Assisted Living Residency Agreement?
An assisted living residency agreement (also called a residency contract, service agreement, or admission agreement) is a legally binding contract between the resident (and often the family) and the assisted living community. It typically consists of several components: the residency agreement (covering the terms of occupancy), the service agreement (covering what care services will be provided and at what cost), the financial agreement (covering fees, payment terms, and financial policies), and the community policies (covering rules, rights, and procedures).
The contract is governed by state law, which sets minimum requirements for what must be included. However, communities have significant latitude in how they structure their contracts, and the terms vary widely. Reading the contract carefully — and comparing it to contracts from other communities — is essential for understanding what you are agreeing to.
| Component | What It Covers | Key Questions |
|---|---|---|
| Residency Agreement | Terms of occupancy, apartment assignment, move-out provisions, discharge grounds | What triggers a required move-out? How much notice is required? |
| Service Agreement | Care services provided, care level tiers, reassessment process | What care is included? How are care levels determined? |
| Financial Agreement | Monthly fees, add-on charges, rate increase provisions, refund policies | What is included in the base rate? How can rates increase? |
| Community Policies | Resident rights, visitor policies, complaint process, safety protocols | What are my parent's rights? How are complaints handled? |
25 Questions to Ask Before Signing
What is included in the base monthly rate?
Get a written, itemized list of everything included in the base rate — meals, housekeeping, laundry, utilities, activities, transportation. This is the foundation for comparing costs across communities.
What services are charged as add-ons, and what are the fees?
Common add-ons include medication management, personal care assistance (bathing, dressing, grooming), incontinence care, and transportation. Ask for a complete fee schedule and a sample monthly statement for a resident with care needs similar to your parent's.
How much is the community fee, and is it refundable?
Community fees (also called move-in fees) typically range from $1,000 to $5,000 and are usually non-refundable. Ask whether it is negotiable, particularly if you are moving in quickly or committing to a longer stay.
How often can rates increase, and by how much?
Ask for the history of rate increases over the past three years and whether there is a cap on annual increases. Some contracts include automatic annual increases tied to a cost-of-living index; others allow increases at any time with 30–60 days' notice.
What is the care level fee structure, and how is my parent's care level determined?
Most communities use a tiered care level system with fees for each level. Ask how levels are assessed, what triggers a reassessment, and what the fee difference is between levels. This is critical for financial planning as care needs increase.
Common Contract Red Flags
These contract provisions should prompt careful scrutiny — and in some cases, reconsideration of the community.
Real Family Stories
Contract Review Checklist
Use this checklist to track your contract review progress. Check each item as you confirm it with the community.
Contract Review Progress
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Ask Questions, Compare Options, and Understand Before You Sign
An assisted living contract is a major financial and legal commitment. The families who navigate it best are not the ones who trust that everything will work out — they are the ones who ask the right questions, read the contract carefully, and understand exactly what they are agreeing to before signing.
Take the contract home. Read it fully. Use the checklist above to track your review. Ask for clarification on anything that is unclear or concerning — and get the clarification in writing. If the community is unwilling to answer your questions or clarify concerning provisions, that is important information about how they will treat you as a resident and family member.
And remember: the goal is not to find a perfect contract — it is to find a community you trust, with terms you understand and can live with. That combination — trust and understanding — is the foundation of a good assisted living experience.
Need Help Navigating the Contract Process?
Olive Hill Care's free care-matching service includes guidance on what to look for in assisted living contracts and what questions to ask before signing. Our care advisors can help you understand the key provisions and prepare for the contract review process.