Tex. Health & Safety Code Section 246.057
Cancellation of Contract: Death or Incapacity Before Occupancy

(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; and

(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.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 953, Sec. 6, eff. Sept. 1, 1993.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1089 (H.B. 2697), Sec. 8, eff. June 19, 2015.

Source: Section 246.057 — Cancellation of Contract: Death or Incapacity Before Occupancy, https://statutes.­capitol.­texas.­gov/Docs/HS/htm/HS.­246.­htm#246.­057 (accessed May 26, 2025).

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
Green check means up to date. Up to date

Verified:
May 26, 2025

§ 246.057. Cancellation of Contract: Death or Incapacity Before Occupancy's source at texas​.gov