Ga. Comp. R. & Regs. 120-2-51-.06

Current through Rules and Regulations filed through June 17, 2024

Rule 120-2-51-.06 - Resident Owned Living Unit

(1) Continuing Care Agreements

(a) The lodging component of a continuing care agreement for resident owned living units may be expressed in a real estate purchase agreement for a resident owned living unit or other documents that govern the purchase and sale of such resident owned living unit, including, but not limited to, condominium declarations, homeowners association rules, and any other documents required for compliance with real property law related to the purchase and sale of resident owned living units. However, such documents must be incorporated by reference into the continuing care agreement for the resident owned living unit and a copy of each referenced documents must be attached as an exhibit.

(b) Continuing care agreements for resident owned living units may provide that the entrance fee can be collected simultaneously with the closing of the purchase and sale of a resident owned living unit.

(2) Funds or Property for Purchase and Sale

Funds or property transferred for the purchase and sale of a resident owned living unit shall not be considered to be funds or property transferred for the care of a resident and, therefore, shall not be subject to the requirements set forth in OCGA 33-45-7(a)(6). Such funds or property shall be governed by applicable real property law related to the purchase and sale of resident owned living units.

(3) Commissions

Funds payable to a duly licensed real estate broker as commissions related to the purchase and sale of the real property interest in a resident owned living unit shall not be considered to be a fee charged by the provider for the transfer of membership or sale of an ownership right.

(4) Reporting and Disclosure

When reporting or disclosure of any information is required under any other body of law governing the purchase and sale of resident owned living units, including, but not limited to, real property law or condominium law, all documents required for such reporting and disclosure shall be made available to the Department of Insurance immediately upon request.

Ga. Comp. R. & Regs. R. 120-2-51-.06

O.C.G.A. §§ 33-2-9, 33-45-4, 33-45-7.

Original Rule entitled "Resident Owned Living Unit" adopted. F. Mar. 24, 2016; eff. Apr. 13, 2016.