.29 Withdrawal of Application or Rescission of Agreement Before Occupancy Date.

A. Withdrawal of Application. A person seeking admission to a continuing care facility may withdraw an application at any time before execution of the continuing care agreement. A provider shall refund within not more than 60 days of the withdrawal all money paid, less any nonrefundable processing fee that was specified in the deposit agreement, to a prospective subscriber who withdraws an application before signing a continuing care agreement.

B. Rescission of Agreement Before the Occupancy Date.

(1) If the subscriber rescinds the agreement before the date of occupancy, and the rescission either occurs within 90 days after entering into the agreement or because of a substantial change in the subscriber's physical, mental, or financial condition, the provider shall, within 30 days of rescission, refund all moneys paid by the subscriber except:

(a) Any processing fee previously specified as nonrefundable; and

(b) Special additional costs incurred by the provider due to modifications in the structure or furnishings of the unit specifically requested by the subscriber, but only if the:

(i) Costs do not exceed the costs of modification or the reasonable costs of restoration actually incurred by the provider, and

(ii) Modification was described in writing in a separate addendum to the agreement as required by Regulation .28A(23) of this chapter.

(2) If the subscriber rescinds the agreement before the date of occupancy, but more than 90 days after entering into the agreement, for any reason other than a substantial change in the subscriber's physical, mental, or financial condition, the provider shall refund the same amount specified in §B(1) of this regulation, except that the provider may require that the subscriber forfeit part of the refund. The forfeiture amount may not exceed 25 percent of any deposit paid by the subscriber.

(3) If a subscriber rescinds an agreement before the date of occupancy because of a substantial change in the subscriber's physical, mental, or financial condition, the provider shall refund the same amount specified in §B(1) of this regulation.

(4) If a provider rescinds an agreement before occupancy because it determines that the subscriber is not eligible for entrance into the facility, the provider shall refund the same amount specified in §B(1) of this regulation.

(5) If a subscriber dies before the date of occupancy, the agreement is automatically canceled, and the provider shall refund to the subscriber's legal representative the same amount specified in §B(1) of this regulation, except that the cancellation is not automatic and is at the option of the surviving subscriber if the agreement is in the name of two subscribers.