Pre-sales in assisted living are becoming more and more common and to the advantage of not just assisted living owners, but families as well. This term is used to describe the process of allowing future residents to pay for their suites before construction or renovation is completed.
Often before a move into an all-encompassing assisted living program, months of planning is involved. A large part of the planning is identifying a facility and then securing your spot.
One of the reasons why there is an ever increasing popularity in pre-sales in assisted living is the anxiousness by many to live in new or newly renovated real estate with the latest amenities and latest regulatory standards observed, including those affecting resident safety. A national survey indicates that up to 25% of new residents in a facility do not come from their family home but instead from an older assisted living program. That is surely understandable. This among other factors contributes to the rise in pre-sales nationally.
Providers who are developing new assisted living programs do well to get the pre-sale process underway 3-9 months before the doors open. Just be sure you do not ignore these items:
- Do not accept money from the pre-sale of a suite until your site plan is approved by local building authorities for new construction and plans are submitted for general construction permits.
- Be sure all project financing is in place.
- Check with your state attorney general to make sure you do not have to make any special filings to accept funds for residency in a facility not yet built.
- Be sure you do not sell – even accidentally – more slots than you plan to build. If you do, a fraud allegation might stick.
- Have a legally sound, valid refund agreement that is placed in your pre-sale info kit provided to those who are interested. Ensure that it meets with legal requirements in your state.
- Be sure a visual is available on your website and in all literature that has an exact mage of how your suites and common areas will look and be furnished.
This arrangement can serve all parties well. One thing for sure with 10,000 Americans turning age 65 daily, we can always use high-quality group living programs that promote safety and well-being.
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A Blog Post presented by Direct Care Training & Resource Center, Inc. a Project Management firm focused on the business of care. Photos are used to draw attention to the written material but do not represent an affiliation with or an endorsement by any individual or organization. Laws and statutes related are accurate at the time of publication to the best of our knowledge and belief. This Blog is not managed by attorneys and does not purport to offer legal advice.