Care Home Contracts: What to Check Before Signing

A care home contract is one of the most important documents a family may ever sign. It can decide who pays, how much is owed, what happens if fees rise, what services are included, what happens during hospital stays, and what happens if the resident dies or needs to move.

Unfortunately, care home contracts are often signed at stressful moments. A parent may be leaving hospital, dementia may have worsened, family carers may be exhausted, or a room may only be available for a short time. In that situation, it is easy to focus on getting the person somewhere safe and leave the paperwork until later.

But the contract matters. Before signing, families should understand exactly what they are agreeing to, especially around fees, notice periods, top-up payments, guarantees, deposits, fee increases and liability after death.

This guide explains what to check in a UK care home contract before signing. It is not legal advice, but it will help you spot important clauses, ask better questions and avoid common financial surprises.

If your concern is what happens when private funds run down, read our guide to what happens when money runs out in a care home. You may also find our guides to care home top-up fees and self-funding a care home useful.

What is a care home contract?

A care home contract is a legally binding agreement between the care home provider and the person receiving care, or someone acting on their behalf. It sets out the services the care home will provide, what the resident or payer must do, and the financial terms of the placement.

The contract should explain:

• who the agreement is between;
• what type of care is being provided;
• the weekly or monthly fee;
• what is included in the fee;
• what costs extra;
• how fees can increase;
• payment dates;
• deposits or advance payments;
• notice periods;
• what happens during hospital stays;
• what happens after death;
• when the home can end the placement;
• complaints procedures;
• resident rights and responsibilities.

The UK government’s consumer rights guide for care home residents says residents and families should be given key information upfront, including about fees, services, terms and cancellation rights, so they can make informed decisions. You can read the official care homes consumer rights guide on GOV.UK.

Do not sign under pressure

Care home decisions can be urgent, but you should not be pressured to sign a contract you do not understand. A responsible care home should give you time to read the agreement, ask questions and take advice where needed.

Be cautious if you are told:

• “You need to sign today or the room will go.”
• “This is just standard paperwork.”
• “You do not need to read every page.”
• “Everyone signs this.”
• “The fees can be sorted out later.”
• “Just sign for your mum or dad.”

A care home contract can create real financial liability. It should never be treated as a minor formality.

Who is signing the contract?

This is the first and most important question. The contract should clearly say who the parties are. Is the contract between the care home and the resident? Is a family member signing as the resident’s representative? Or is a family member signing in their own name and taking on personal liability?

Ask directly:

• Am I signing on behalf of the resident?
• Am I signing as attorney or deputy?
• Am I signing only to confirm I have read the terms?
• Am I personally responsible for any fees?
• Am I acting as guarantor?
• Could I be chased for unpaid fees?

Do not assume the answer. The wording matters. If you sign in your own name, you may be accepting obligations you did not intend to take on.

Does the person have mental capacity to sign?

If the resident understands the contract, the fees, the care arrangement and the consequences of signing, they may be able to sign for themselves. But many people entering care may have dementia, delirium, stroke-related difficulties, severe illness or fluctuating capacity.

If there is doubt about mental capacity, the care home should not simply ask a relative to sign without checking legal authority.

Questions to ask include:

• Has the resident’s mental capacity to sign been considered?
• Can the resident understand the agreement?
• Can they weigh up the decision?
• Can they communicate a decision?
• Is there a Lasting Power of Attorney?
• Is there a Court of Protection deputy?
• If the resident lacks capacity, who has legal authority to sign?

If nobody has authority to manage finances, legal advice may be needed. In some cases, an application to the Court of Protection may be required.

Are you signing as an attorney or deputy?

If you have a valid Lasting Power of Attorney for property and financial affairs, or you are a Court of Protection deputy, you may be able to sign on the resident’s behalf. But you should make clear that you are signing in that capacity, not personally.

For example, the signature section should make it clear that you are signing as attorney for the resident. If the contract is unclear, ask the care home to amend or clarify it before signing.

You should also make sure the care home has seen evidence of your authority, such as the registered power of attorney or deputyship order.

Are you being asked to act as guarantor?

A guarantor is someone who agrees to pay if the resident does not. This can be a major financial commitment.

Do not agree to be a guarantor unless you fully understand:

• what debts you could be responsible for;
• whether your liability is limited or unlimited;
• whether you are liable only for top-up fees or all fees;
• what happens if the resident’s money runs out;
• what happens if the local authority delays funding;
• what happens if fees increase;
• how you can end the guarantee;
• whether you should take legal advice.

The Competition and Markets Authority has highlighted concerns about unfair care home contract terms, including unclear financial liabilities and fees charged after death. Its consumer law work on care homes has focused on ensuring residents and families are treated fairly and receive clear upfront information. You can read the CMA’s care homes consumer protection case summary on GOV.UK.

Check the weekly fee carefully

The contract should state the exact fee being charged. This should be the fee for the specific resident, the specific room and the assessed level of care.

Ask:

• Is this the actual weekly fee or a starting price?
• Is the fee based on the resident’s assessment?
• Does the fee include residential care, nursing care or dementia care?
• Is the room fee different from the care fee?
• Is VAT relevant?
• Is the fee paid weekly, monthly or four-weekly?
• Is payment in advance or arrears?
• What date is payment due?

If the person’s needs are likely to change, ask whether the fee can increase after admission. For example, a resident who later needs two carers, a hoist, more night-time support or nursing care may be charged more.

Check what is included in the fee

The contract should clearly explain what the weekly fee includes. Do not assume that all care home services are included automatically.

The core fee may include:

• accommodation;
• meals and drinks;
• personal care;
• staff support;
• laundry;
• cleaning;
• heating and utilities;
• basic activities;
• care planning;
• use of communal areas.

But every home is different. Ask for a written list. If something is important to the resident, such as continence products, toiletries, transport, specialist diets or activities, check whether it is included.

Check what costs extra

Many care homes charge separately for additional services. These are not always obvious at the beginning.

Extras may include:

• hairdressing;
• chiropody;
• newspapers and magazines;
• toiletries;
• private phone line;
• television packages;
• premium activities;
• trips and outings;
• transport to appointments;
• staff escorts to appointments;
• specialist equipment;
• one-to-one support;
• some therapies or private healthcare appointments.

Ask whether extras are optional or necessary. Also ask how they are approved. For example, can the care home arrange paid services without family consent, or must an attorney approve them first?

Check how fee increases work

Care home fees often increase. The contract should explain when and how fees can rise. This is especially important for self-funders and families paying top-up fees.

Ask:

• How often are fees reviewed?
• Are fees reviewed annually?
• Can fees increase if care needs change?
• How much notice is given before a fee increase?
• What factors are used to calculate increases?
• Can the home increase fees by any amount?
• What happens if the resident or family cannot afford the increase?

Fee increase clauses should be clear and understandable. Be cautious of vague wording that allows the home to increase fees without proper explanation or notice.

Check whether fees can change if care needs increase

A resident’s needs may change after admission. Someone may become less mobile, need a hoist, require two carers, develop dementia symptoms, need more night-time support or require nursing care.

The contract should explain whether the fee can change if needs increase.

Ask:

• How are changing needs assessed?
• Who decides whether the fee should increase?
• Will the family be told before the increase applies?
• Will the increase be explained in writing?
• Can the resident challenge the increase?
• Could the home say it can no longer meet the resident’s needs?

If the resident has dementia, advanced frailty or a progressive condition, this clause is especially important.

Check deposits and advance payments

Some care homes ask for a deposit or payment in advance. The contract should explain exactly what the payment is for and whether it is refundable.

Ask:

• Is this a deposit or an advance payment of fees?
• How much is required?
• When is it due?
• Is it refundable?
• In what circumstances could money be withheld?
• Can deductions be made for damage?
• How is normal wear and tear treated?
• When will any refund be paid?

Be cautious about large upfront charges that are not clearly explained. The CMA has previously taken action and issued guidance in relation to care home charges, including concerns around upfront administration fees and post-death fees.

Check notice periods

The contract should explain how much notice must be given if the resident wants to leave, if the family wants to move them, or if the care home wants to end the placement.

Ask:

• How much notice must the resident give?
• How much notice must the care home give?
• Are notice periods different during a trial period?
• Does notice have to be in writing?
• Can fees be charged during the notice period if the resident leaves early?
• What happens if the resident dies?
• What happens if the resident moves to hospital?

Notice periods can have major financial consequences. For example, if the contract requires four weeks’ notice and the resident moves after one week, the home may still try to charge for the full notice period.

Check whether there is a trial period

Some care homes offer a trial period, especially for permanent placements. This allows the home, resident and family to see whether the placement is suitable.

Ask:

• Is there a trial period?
• How long does it last?
• Can either side end the placement during the trial?
• What notice is required during the trial?
• Are fees different during the trial?
• What happens if the home decides it cannot meet the resident’s needs?

A trial period can be helpful, but the financial terms still need to be clear.

Check what happens during hospital admission

Many residents spend time in hospital after moving into a care home. The contract should explain what fees are charged while the resident is away from the home.

Ask:

• Are full fees charged during hospital stays?
• Is there any reduction after a certain number of days?
• How long will the room be held?
• Can the home end the placement during a long hospital stay?
• What happens if the resident’s needs change in hospital?
• Will the home reassess before readmission?
• What happens if the home can no longer meet the person’s needs?

This matters because hospital stays can last days, weeks or longer. Families should not discover the charging policy only after an emergency admission.

Check what happens after death

This is painful to think about, but it is one of the most important contract sections. Some families only discover post-death fee clauses after bereavement, when they are least able to challenge them.

The contract should explain:

• when fees stop after death;
• whether any post-death fees are charged;
• whether fees continue until the room is cleared;
• how long the family has to remove belongings;
• whether the home can charge for storage;
• what happens to deposits or advance payments;
• when final invoices and refunds are issued.

The CMA has previously raised concerns about care homes charging fees for extended periods after a resident’s death. Its advice has treated long post-death charging periods as a consumer law concern, especially where families are charged after a room has been cleared or made available. The issue remains important for families to check carefully before signing.

If a contract says fees continue for many days or weeks after death, ask for clarification and consider taking advice before signing.

Check personal possessions and room clearing rules

The contract should explain what happens to the resident’s belongings if they move out, go into hospital or die.

Ask:

• How quickly must belongings be removed?
• Can the home charge while belongings remain in the room?
• Can the home move belongings into storage?
• Are storage fees charged?
• What happens if belongings are lost or damaged?
• Does the home insure residents’ possessions?
• Should valuable items be separately insured?

Keep an inventory of important belongings, especially jewellery, hearing aids, glasses, dentures, mobility aids, photos and sentimental items.

Check liability for lost or damaged belongings

Care homes vary in how they handle personal property. Some have limited liability for loss or damage unless items were handed in for safekeeping. Others may have specific procedures for valuables.

Ask:

• What property is covered by the home’s insurance?
• Are valuables covered?
• Is there a maximum claim amount?
• Should jewellery or cash be kept in the home?
• How are hearing aids, glasses and dentures labelled?
• What happens if laundry is lost or damaged?

Some losses are small but distressing. Others, such as lost hearing aids or dentures, can affect quality of life. The contract should make responsibilities clear.

Check laundry terms

Laundry is a common source of complaints in care homes. Clothes may go missing, shrink, become damaged or be mixed up with other residents’ items.

Ask:

• Is laundry included in the fee?
• Are clothes labelled?
• Who labels them?
• Are delicate items accepted?
• Is dry cleaning included or extra?
• What happens if clothing is lost or damaged?
• Can families choose to do laundry themselves?

Do not send valuable or delicate clothing without checking the home’s laundry policy.

Check healthcare and appointment costs

The contract should explain what support is provided for healthcare appointments and what may cost extra.

Ask:

• Does the home arrange GP appointments?
• Does the home support hospital appointments?
• Is transport included?
• Is staff escort time charged separately?
• Are dentists, opticians and chiropodists included or extra?
• Who pays for private appointments?
• Will family be consulted before paid services are arranged?

Appointment escort charges can add up, especially if the resident has regular hospital visits.

Check medication and pharmacy arrangements

Medication support is usually part of care, but there may still be contract terms around pharmacy arrangements, over-the-counter medicines, private prescriptions or specialist products.

Ask:

• Which pharmacy supplies medicines?
• Can the resident keep their existing pharmacy?
• Who orders repeat prescriptions?
• Are over-the-counter medicines charged separately?
• How are medication changes communicated to family?
• How are errors reported?

If the resident has complex medication needs, make sure the care home has assessed them properly before admission.

Check food, dietary needs and supplements

The contract or service information should explain what meals and drinks are included, and how special diets are handled.

Ask:

• Are all meals included?
• Are snacks and drinks included?
• Can special diets be provided?
• Are texture-modified diets available?
• Are nutritional supplements included or prescribed separately?
• Are cultural or religious food needs supported?
• Can families bring food in?

If the resident has diabetes, swallowing problems, weight loss, allergies or religious dietary needs, ask for written confirmation of how these will be managed.

Check activities and outings

Activities may be included in the care home fee, but outings, entertainers or specialist activities may cost extra.

Ask:

• Which activities are included?
• Which activities cost extra?
• Are outings charged separately?
• Is transport charged separately?
• Does the resident need to opt in?
• Who approves paid activities if the resident lacks capacity?

Activities are important for wellbeing, but families should understand any additional costs.

Check visiting terms

Most care homes should welcome family involvement, but the contract or resident guide may include visiting policies.

Ask:

• What are the normal visiting arrangements?
• Can family visit in the evening or at weekends?
• Can children visit?
• Can pets visit?
• Can relatives join meals?
• Can visiting be restricted?
• How are infection outbreaks handled?

Policies should balance safety, privacy and family contact. Be cautious if visiting seems unnecessarily restricted without clear reason.

Check room changes

The contract should explain whether the resident can be moved to another room and under what circumstances.

Ask:

• Can the resident be moved to another room?
• Who decides?
• Will family be consulted?
• Can the fee change if the room changes?
• What happens if the resident needs a ground-floor room later?
• What happens if nursing or dementia needs increase?

For someone with dementia, room changes can be distressing. The contract should not allow unnecessary moves without proper discussion.

Check whether the home can end the placement

Care homes can sometimes end a placement, but the contract should explain when and how this can happen.

Reasons may include:

• the home can no longer meet the resident’s needs;
• fees are unpaid;
• the resident poses serious risk that cannot be managed;
• the resident needs nursing or specialist care the home cannot provide;
• the placement was temporary or respite only;
• the home is closing.

Ask:

• How much notice must the home give?
• Can notice be shorter in urgent situations?
• Will the home involve family and social services?
• What happens if the resident has nowhere suitable to go?
• How are safeguarding risks handled?

If the resident has complex needs, ask before signing what would happen if those needs increase.

Check what happens if money runs out

This is essential for self-funders. If the resident is paying privately, the contract should explain what happens if their savings fall and local authority funding becomes involved.

Ask:

• Do you accept local authority-funded residents?
• Would the resident be able to stay if council funding starts?
• Would a top-up fee be needed?
• Could fees change?
• Could the resident be asked to move?
• How much notice would be given?
• Who should contact the council?

This is closely linked to the issue of running out of money. Read our guide to what happens when money runs out in a care home before agreeing to a long-term placement.

Check top-up fee clauses

If the local authority is funding part of the care home fee, but the chosen home costs more than the council’s personal budget, a top-up fee may be requested. This is usually paid by a third party, such as a family member.

Before signing any top-up agreement, ask:

• Why is a top-up needed?
• Is there a suitable care home available within the council budget?
• Who is paying the top-up?
• How much is it?
• Can it increase?
• How much notice is given before increases?
• What happens if the payer can no longer afford it?
• Could the resident be moved?
• Is the payer also guaranteeing wider fees?

Top-up fees can last for years. Do not agree to one unless you understand the commitment. See our full guide to care home top-up fees.

Check cancellation rights before moving in

If a contract is signed away from the care home, online, by phone or in certain other circumstances, cancellation rights may apply. The rules can depend on how and where the contract was agreed.

Ask:

• Do cancellation rights apply?
• How long is the cancellation period?
• How do we cancel?
• Are any fees payable if care has already started?
• What happens if we cancel before moving in?

The care home should explain cancellation rights clearly where they apply.

Check complaints procedures

The contract should explain how complaints are handled. A good care home should welcome concerns and explain the process clearly.

Ask:

• Who handles complaints?
• How do we complain?
• How quickly will complaints be acknowledged?
• How long will an investigation take?
• What happens if we are unhappy with the response?
• Can we complain to the local authority, CQC or ombudsman?

If a complaint is not resolved through the provider’s process, the Local Government and Social Care Ombudsman may be relevant for complaints about adult social care in England.

Check safeguarding and incident reporting

The contract or resident guide should explain how the care home handles incidents, accidents and safeguarding concerns.

Ask:

• How are falls reported?
• How are medication errors reported?
• How are safeguarding concerns handled?
• When are families informed?
• Who contacts the GP, ambulance service or local authority?
• How are incidents reviewed?

Families should know when they will be contacted and how serious concerns are escalated.

Check data, privacy and information sharing

Care homes handle sensitive personal, medical and financial information. The contract should explain how information is used and who it may be shared with.

Ask:

• Who can receive updates about the resident?
• Who is the main family contact?
• How is consent recorded?
• How is information shared with GPs, hospitals or social workers?
• How can the resident or attorney access care records?
• How is privacy protected?

This matters especially where family members disagree or where the resident has capacity to decide who receives information.

Check photography, social media and publicity consent

Some care homes take photos during activities or events. These may be used in newsletters, private family apps, websites or social media. Consent should be clear.

Ask:

• Will photos be taken?
• Where might they be used?
• Can the resident refuse?
• Who gives consent if the resident lacks capacity?
• Can consent be withdrawn?

No resident should be used in publicity without proper consent or best interests consideration.

Check rules about behaviour and risk

Some residents may become distressed, confused, agitated or verbally or physically challenging, especially if they have dementia, delirium, brain injury or mental health needs. The contract may include clauses about behaviour and risk.

Ask:

• How does the home support distress or behaviour that challenges?
• When would the home say it can no longer meet needs?
• Will family be involved before notice is given?
• Will healthcare professionals be involved?
• Could medication, environment or care planning be reviewed first?

Be cautious if the contract allows the home to end the placement very quickly for vague reasons without proper assessment or discussion.

Check end-of-life care arrangements

If the resident is frail or has a progressive condition, ask how the home supports end-of-life care and whether the contract includes relevant terms.

Ask:

• Can the home support end-of-life care?
• Do they work with GPs, district nurses or palliative care teams?
• Can family stay near the end of life?
• How are advance care plans recorded?
• How are fees handled after death?

It is better to ask difficult questions early than to discover unclear arrangements during a crisis.

Check if the contract matches what you were promised

Before signing, compare the contract with what you were told during visits or phone calls. If something important was promised, make sure it appears in writing.

This may include:

• a specific room;
• an en-suite bathroom;
• dementia care;
• nursing care;
• one-to-one support;
• transport;
• special dietary support;
• family visiting arrangements;
• activities;
• fee level;
• trial period;
• notice period.

If the contract says something different from what you were told, ask for it to be corrected before signing.

Warning signs in a care home contract

Be cautious if the contract includes or allows:

• unclear fees;
• very broad fee increase powers;
• large upfront charges without clear explanation;
• family members becoming guarantors without clear limits;
• extended fees after death;
• vague extra charges;
• unclear notice periods;
• the home ending the contract quickly for broad reasons;
• limited responsibility for lost belongings;
• pressure to sign immediately;
• clauses that contradict what you were told verbally;
• no clear complaints process.

If you see any of these, ask for clarification in writing and consider getting advice.

Questions to ask before signing a care home contract

Use these questions before agreeing to a placement:

• Who exactly is signing the contract?
• Am I signing personally or on behalf of the resident?
• Am I being asked to act as guarantor?
• What is the weekly fee?
• What is included?
• What costs extra?
• Can fees increase?
• How much notice is given for fee increases?
• Can fees increase if care needs change?
• Is a deposit required?
• Is the deposit refundable?
• What is the notice period?
• What happens if the resident goes into hospital?
• What happens after death?
• What happens if money runs out?
• Does the home accept local authority funding?
• Could a top-up fee be needed?
• Can the home ask the resident to leave?
• How are complaints handled?
• Can I take the contract away for advice?

When should you get legal or financial advice?

You may want advice before signing if:

• you are asked to be guarantor;
• the resident lacks mental capacity;
• there is no power of attorney;
• the contract is unclear;
• large upfront fees are requested;
• there are complex top-up fees;
• property is involved;
• the person is close to running out of money;
• family members disagree;
• you feel pressured;
• the contract includes fees after death that seem excessive.

Possible sources of support include Citizens Advice, Age UK, a solicitor experienced in community care law, a regulated financial adviser specialising in later-life care, or the local authority adult social care team where funding is involved.

Final thoughts

A care home contract should protect both the resident and the provider, but families need to read it carefully before signing. The most important points are who is liable for fees, what the weekly fee includes, how increases work, what happens if money runs out, what happens during hospital stays, and what happens after death.

Do not sign under pressure. Do not assume you are “just helping with paperwork”. Do not agree to be a guarantor unless you understand the risk. Ask for written answers. Make sure the contract reflects what you were promised. If anything is unclear, take advice before signing.

A good care home should be willing to explain its contract clearly. If a provider becomes defensive, vague or pushy when you ask reasonable questions, that is worth noticing.

For related guidance, read our articles on what happens when money runs out in a care home, care home top-up fees, care home fees and how to choose a care home in the UK.

Frequently asked questions

What should I check before signing a care home contract?

Check who is signing, whether anyone is acting as guarantor, the weekly fee, what is included, extra charges, fee increases, deposits, notice periods, hospital stay charges, post-death fees, top-up fees, complaints procedures and what happens if money runs out.

Should I sign a care home contract for my parent?

Only if you have the legal authority to do so or you fully understand the capacity in which you are signing. If you sign personally or as guarantor, you may become financially responsible. Ask the care home to clarify this in writing before signing.

What does signing as guarantor mean?

Signing as guarantor usually means you agree to pay if the resident does not. This can create serious financial liability. Do not sign as guarantor unless you understand exactly what debts you could be responsible for and whether the liability is limited.

Can care home fees increase after signing?

Yes, many care home contracts allow fees to increase, often annually or if care needs change. The contract should explain when fees can rise, how increases are calculated and how much notice will be given.

Can a care home charge fees after death?

Some contracts include post-death fees, often linked to clearing the room. However, extended post-death charging can raise consumer law concerns. Check the clause carefully and ask when fees stop, how quickly belongings must be removed and whether refunds apply.

What happens if the resident goes into hospital?

The contract should explain whether full fees continue during hospital stays, whether any reduction applies, how long the room is held and what happens if the resident’s needs change before returning.

Can a care home ask someone to leave?

Yes, in some circumstances, such as unpaid fees or if the home can no longer meet the resident’s needs. The contract should explain the reasons, notice period and process. The resident’s safety and care needs should be considered.

What if the resident’s money runs out?

Contact the local authority before savings fall below the upper capital limit. The council may assess needs and finances. The resident may stay in the same home, a top-up may be needed, or another suitable home may be considered.

What are care home top-up fees?

A top-up fee is an extra payment, usually made by a third party, when the chosen care home costs more than the local authority’s personal budget. Top-up agreements should be clear, written and affordable long term.

Can I refuse to sign a care home contract?

You can refuse to sign a contract you do not understand or are not authorised to sign. Ask for clarification, request amendments if needed and take advice. The placement may not proceed until the contractual position is resolved.

Can I take a care home contract away before signing?

Yes, you should be allowed time to read and understand the contract. A care home that pressures you to sign immediately should be treated with caution.

What if the contract differs from what we were promised?

Ask the care home to correct or clarify the contract before signing. Important promises about fees, care, rooms, services or notice periods should be in writing.

Are care home deposits refundable?

It depends on the contract. Ask whether the payment is a deposit or advance fee, when it is refundable, what deductions can be made and when refunds are paid.

Who can complain about an unfair care home contract?

The resident, attorney, deputy, representative or family member may raise concerns with the care home. If unresolved, complaints may be taken to the relevant ombudsman or advice may be sought from consumer, legal or social care organisations.

Should I get legal advice before signing?

Legal advice is sensible if the resident lacks capacity, you are asked to be guarantor, the contract is unclear, large sums are involved, property is relevant, top-up fees are requested, or the contract includes terms you are worried about.