Care Home Contracts: What to Check Before You Sign

Once you've chosen a home, you'll be handed a contract — sometimes called a "residency agreement" or "terms and conditions." It sets out what you're paying, what you get for it, and what happens if things change. Signing it under pressure, without reading it properly, is one of the most common sources of disputes later. Taking an hour now can save real money and stress down the line.

When should you get a contract, and can you take your time?

You should receive a written contract before care starts, or right at the outset. Don't accept a verbal assurance instead — if a manager tells you "we won't raise fees mid-year" or "your room will be held if you go into hospital," ask for it to be written into the contract. Verbal promises are very hard to enforce later.

It's entirely reasonable to take the contract away, read it without pressure, and come back with questions. A good home won't rush you. If you're being pushed to sign on the spot, treat that as a warning sign.

What should you check before you sign?

Seven things matter most. If any of these isn't clear, ask before you commit:

1. What the fee includes and excludes — extras add up.
2. When and how fees can rise, and how much notice you'll get.
3. Notice period to leave, for both you and the home.
4. How many days fees are charged after a death.
5. Deposits and admin fees — how much, and are they refundable?
6. What happens to your room and fees during a hospital stay.
7. Top-up fees — who's paying them, and what happens if payment stops.

What does the weekly fee actually cover?

Ask for a full, itemised breakdown of what's included in the standard weekly fee, and what's billed separately. Common extras include chiropody, hairdressing, outings, newspapers, escorted GP or hospital appointments, and some activities. Ask the home for a typical list of extras with rough costs, so there are no surprises on the first invoice.

How can care home fees be increased?

The contract should state clearly:

• How often fees are reviewed (usually annually).
• How any increase is calculated.
• How much written notice you'll be given before it takes effect.

Be cautious of any clause allowing large or open-ended increases at short notice, or one that lets the home change fees without a clear method. These are the kinds of terms consumer regulators have flagged as potentially unfair.

Notice periods and fees after a death

Check two separate things: how much notice is needed if the resident wants to leave, and — a difficult but important detail — how many days fees continue to be charged after a resident dies, typically to allow time to clear the room. Both should be reasonable and clearly stated. Very long post-death charging periods have been challenged as unfair practice.

What happens during a hospital stay?

Ask whether the room is held during a hospital admission, for how long, and whether the fee is reduced or stays the same. This should be written into the contract, not left as an informal arrangement.

Deposits, admin fees and top-ups

Check whether a deposit or advance payment is required, how much it is, and whether it's refundable — and under what circumstances. If a third party (usually a family member) is paying a top-up on top of the local authority or self-funded rate, the contract should say clearly:

• Who is agreeing to pay the top-up.
• How the top-up amount can change over time.
• What happens to the placement if the top-up can't be paid.

For background on how local authority funding, top-ups and self-funding interact, see the NHS social care and support guide and Age UK.

Who should sign the contract — and who becomes liable?

Whoever signs a contract "as liable for the fees" can be made personally responsible for paying them, even if the money was meant to come from the resident's own funds or estate. If the resident has capacity, they should normally sign themselves. If they've lost capacity, someone with a registered financial lasting power of attorney can sign on their behalf as attorney — not in their own personal capacity.

If a relative signs in their own name without meaning to take on liability, they can end up owing fees themselves. If you're unsure who should sign, get advice before you do. See GOV.UK on lasting power of attorney for how to set one up or check whether one is already registered.

Your rights: contracts must be fair

Care home contracts are covered by UK consumer protection law. The Competition and Markets Authority has issued guidance setting out what fair practice looks like in this sector: clear upfront pricing, fair and understandable terms, and no unreasonable penalties. A term that's unfair — such as an excessive post-death charging period, or a demand for large payments in advance with no justification — may not be legally enforceable, even if you've signed it.

Before you sign — a quick checklist

• Read the whole contract, not just the fees section.
• Get every verbal promise written into the document.
• Query anything vague, one-sided, or open to the home's discretion.
• Confirm exactly who is signing, and whether they're signing personally or as an attorney.
• Consider a solicitor's review for high-value or unusual arrangements — Age UK and Citizens Advice can also help.