Texas Health and Safety Code

§ 246.057 — CANCELLATION OF CONTRACT: DEATH OR INCAPACITY BEFORE OCCUPANCY

HS § 246.057Title 4. HEALTH FACILITIES · Part B. LICENSING OF HEALTH FACILITIES · Ch. 246. CONTINUING CARE FACILITIES · Art. C. CONTINUING CARE CONTRACTS AND DISCLOSURE STATEMENTS

Statute text

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(a)A continuing care contract to provide continuing care in a living unit in a facility is canceled if the resident:

(1)dies before occupying a living unit in the facility; or

(2)is precluded under the terms of the contract from occupying a living unit in the facility because of illness, injury, or incapacity.

(b)If a continuing care contract is canceled under this section, the resident or the resident's legal representative is entitled to a refund of all money or property transferred to the provider, minus:

(1)any nonstandard costs specifically incurred by the provider or facility at the request of the resident that are described in the contract or in an addendum to the contract signed by the resident;

(2)a reasonable service charge, if set out in the contract, that may not exceed the greater of $1,000 or two percent of the entrance fee; and

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Legislative history

Acts 2015, 84th Leg., R.S., Ch. 1089 (H.B. 2697), Sec. 8, eff. June 19, 2015. Acts 2025, 89th Leg., R.S., Ch. 836 (S.B. 1522), Sec. 8, eff. January 1, 2026.