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Reservation & Residency Agreements. Read Comprehend Discuss Reference (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!
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Reservation & Residency Agreements • Read • Comprehend • Discuss • Reference (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 Law • Sponsor • Competitive Environment • Actual Facilities • Available Continuum
Why Know Your R.A.’s? Today’s Prospect Profile- • Likely to use a professional advisor • Is well educated • Has substantial financial resources • Analyzes Risk and plans accordingly • Is weary of Senior Scams • Understands LTC costs
Reservation Agreement • User friendly • Allows for a reservation on a specific apartment • Locks in pricing • Benefit addendums • Market specific • Refundability clause • Residency Agreement signed closer to occupancy
F.A.Q.FAQ Frequently Asked Questions Answered in the Residency Agreement
F.A.Q. What is the Entrance Fee used for and will I receive interest? Answer Reference: Entrance Fee and Monthly Fees
F.A.Q. What services are included in my monthly fee? Answer Reference: General Services and Facilities Included General Services:
F.A.Q. What happens if my spouse requires a higher level of care than I do? Answer Reference: 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? Answer Reference: Residents’ Rights & Obligations Home Health Care Services:
F.A.Q. Can I have overnight guests? Answer Reference: Miscellaneous;Guests: or Residents Rights and Obligations; Guests
F.A.Q. When will my Entrance Fee be refunded? Answer Reference: 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? Answer Reference: Terminations and Refunds; Relocation:
F.A.Q. Will my Monthly Fee increase? Answer Reference: 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? Answer Reference: 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? Answer Reference: Transfers and Readmission Consultations:
F.A.Q. What if I run out of money? Answer Reference: Entrance Fee and Monthly Fees Residents Who Become Unable to pay:
F.A.Q. How does the dining program work? Answer Reference: 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 increases • Excessive delay on refund because of low occupancy • Loss of refund because of financial problems/bankruptcy of the community • Community 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 Manager • Sponsor • Executive Director • Administrator • Director of Nursing • Board 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.