Tex. Health & Safety Code Section 246.056
Rescission of Contract; Required Language


(a)

A person who executes a continuing care contract with a provider may rescind the contract at any time before the later of midnight of the seventh day, or a later day if specified in the contract:

(1)

after the date on which the continuing care contract is executed; or

(2)

after the date on which the person receives a disclosure statement that meets the requirements of this subchapter.

(b)

A resident who executes a continuing care contract to provide continuing care in a living unit of a facility may not be required to move into the facility before the expiration of the period during which the contract may be rescinded.

(c)

If a continuing care contract is rescinded under this section, any money or property transferred to the provider, other than periodic charges specified in the contract and applicable only to the period a living unit was actually occupied by the resident, shall be refunded not later than the 30th day after the date of rescission.

(d)

Each continuing care contract must include the following statement or a substantially equivalent statement in type that is boldfaced, capitalized, underlined, or otherwise set out from the surrounding written material so as to be conspicuous:
“You may cancel this contract at any time prior to midnight of the seventh day, or a later day if specified in the contract, after the date on which you sign this contract or you receive the facility’s disclosure statement, whichever occurs later. If you elect to cancel the contract, you must do so by written notice and you will be entitled to receive a refund of all assets transferred other than periodic charges applicable to your occupancy of a living unit.”

(e)

Each continuing contract also must include the following statement in type that is boldfaced, capitalized, underlined, or otherwise set out from the surrounding written material so as to be conspicuous:
“This document, if executed, constitutes a legal and binding contract between you and __________. You may wish to consult a legal or financial advisor before signing, although it is not required that you do so to make this contract binding.”
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 14, Sec. 102, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 953, Sec. 5, eff. Sept. 1, 1993.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1089 (H.B. 2697), Sec. 7, eff. June 19, 2015.

Source: Section 246.056 — Rescission of Contract; Required Language, https://statutes.­capitol.­texas.­gov/Docs/HS/htm/HS.­246.­htm#246.­056 (accessed Jun. 5, 2024).

246.001
Short Title
246.002
Definitions
246.003
Board Powers and Duties
246.004
Rights of Residents
246.005
Licensing for Certain Tax Purposes
246.006
Quality of Care
246.007
Reduction of Fees
246.021
Certificate of Authority Required
246.022
Application for and Issuance of Certificate of Authority
246.023
Mandatory Issuance of Certificate of Authority to Certain Facilities
246.024
Transfer of Certificate of Authority
246.0025
Definition of Continuing Care
246.025
Suspension or Revocation of Certificate of Authority
246.026
Management by Others
246.027
Certificate of Authority Fees
246.041
Precontractual Recording Requirements
246.042
Delivery of Disclosure Statement
246.043
Cover Page of Disclosure Statement
246.044
Contents of Disclosure Statement: Provider
246.045
Contents of Disclosure Statement: Third Party Management
246.046
Contents of Disclosure Statement: Affiliation with Nonprofit Organization
246.047
Contents of Disclosure Statement: Physical Property
246.048
Contents of Disclosure Statement: Contracts and Fees
246.049
Contents of Disclosure Statement: Change of Circumstances
246.050
Contents of Disclosure Statement: Financial Information
246.051
Contents of Disclosure Statement: Annual Income Statements
246.052
Contents of Disclosure Statement: Anticipated Source and Application of Funds
246.053
Standard Contract Form
246.054
Annual Disclosure Statement Revision
246.055
Advertisement in Conflict with Disclosures
246.056
Rescission of Contract
246.057
Cancellation of Contract: Death or Incapacity Before Occupancy
246.058
Disclosure Statement Fees
246.071
Entrance Fee Escrow Account
246.072
Return of Deposits
246.073
Release to the Provider
246.074
Return of Entrance Fee
246.075
Escrow of Application Fee Not Required
246.076
Interest Accrued on Entrance Fee Funds
246.077
Reserve Fund Escrow
246.078
Release of Reserve Fund Escrow
246.079
Transition
246.080
Applicability
246.091
Supervision by Commissioner
246.092
Application for Court Order for Rehabilitation or Liquidation
246.093
Order to Rehabilitate
246.094
Order to Liquidate
246.095
Bond
246.096
Termination of Rehabilitation
246.097
Payment of Trustee
246.111
Lien
246.112
Investigations
246.113
Production of Evidence
246.114
Actuarial Review
246.115
Cease and Desist Orders
246.116
Criminal Penalty
246.117
Civil Liability
246.0735
Phase-in Facilities
246.0736
Continuing Release of Escrow
246.0737
Care in Residence

Accessed:
Jun. 5, 2024

§ 246.056’s source at texas​.gov