Knowing Your Reservation AgreementAngela Hanson presents

Reservation & Residency Agreements

Read ComprehendDiscussReference (location in Agreement)

Why Know Your R.A.?

“I’m a Sales Counselor, not a lawyer…why do I need to know the

Agreement?”

Credibility

If you are comfortable and confident with the R.A. your

Prospect will be too!

It is an integral part of the sales process.

Why Know Your R.A.?

Every Community’s R.A. is Different

State LawSponsorCompetitive EnvironmentActual FacilitiesAvailable Continuum

Why Know Your R.A.’s?

Today’s Prospect Profile-Likely to use a professional advisorIs well educatedHas substantial financial resourcesAnalyzes Risk and plans accordinglyIs weary of Senior ScamsUnderstands LTC costs

Reservation Agreement

User friendlyAllows for a reservation on a specific apartmentLocks in pricingBenefit addendumsMarket specificRefundability clauseResidency Agreement signed closer to occupancy

Frequently Asked Questions Answered in the Residency

Agreement

F.A.Q.FAQ

F.A.Q.

What is the Entrance Fee used for and will I receive interest?

AnswerReference: Entrance Fee and Monthly Fees

F.A.Q.

What services are included in my monthly fee?

AnswerReference: General Services and Facilities

Included General Services:

F.A.Q.

What happens if my spouse requires a higher level of care than I do?

AnswerReference: Transfers and Readmission;

Double Occupancy Single Transfer:or

General Services; Lifecare Benefit/Long Term Care Benefit;

Effect on Monthly Service Fee

F.A.Q.

Can I have Home Health Care in my apartment?

AnswerReference: Residents’ Rights &

Obligations Home Health Care Services:

F.A.Q.

Can I have overnight guests?

AnswerReference: Miscellaneous; Guests:

or Residents Rights and Obligations; Guests

F.A.Q.

When will my Entrance Fee be refunded?

AnswerReference: Terminations and Refunds;

Termination of Residency after Occupancy: Refund of Entrance Fee; Right of Set-off

F.A.Q.

Can I change apartments after I move in?

AnswerReference: Terminations and Refunds;

Relocation:

F.A.Q.

Will my Monthly Fee increase?

AnswerReference: Entrance Fees and Monthly

Fees Changes in Monthly Service Fees:

F.A.Q.

What if I need a higher level of care and there is no space available?

AnswerReference: General Services; Life Care

Benefit/Long Term Care Benefit; Admission:

F.A.Q.

When and how is it decided that I can no longer live in my apartment?

AnswerReference: Transfers and Readmission

Consultations:

F.A.Q.

What if I run out of money?

AnswerReference: Entrance Fee and Monthly

FeesResidents Who Become Unable to pay:

F.A.Q.

How does the dining program work?

AnswerReference: General Services and Facilities

Dining Service:

The Tough Ones

While most terms of the R.A. are straight forward and reinforce the value of the

Community, Prospects might object that some sections are ambiguous or uncertain. It is important to understand where in your R.A.

these might be and how address with Prospects.

Examples Include:

No written cap on monthly fee increasesExcessive delay on refund because of low occupancyLoss of refund because of financial problems/bankruptcy of the communityCommunity holds final decision for health related transfers

Resources

Remember to Use your Management and Operational Team to help handle tough objections. It goes back to credibility.

Resources

Regional ManagerSponsorExecutive DirectorAdministratorDirector of NursingBoard of Directors

Legalese

Definition: Language that is typically used in legal documents and is

generally considered by lay people to be difficult to understand

Severability

A clause in a contract that allows for the terms of the contract to be independent of one another, so that if a term in the contract is deemed unenforceable by a court, the contract as a whole will not

be deemed unenforceable.

Right of Set-off

An agreement defining each party's rights should one party default on its

obligation.

Subordination

Allowing a debt or claim which has priority to take second position behind another debt, particularly a new loan.

Right of Subrogation

The right to assume the legal rights of a person for whom expenses or a debt

has been paid.

Right of Subrogation

The right to assume the legal rights of a person for whom expenses or a debt

has been paid.

What are your stories and how did you respond?

Q&A