Care home contracts and fees: what to check before you sign

Costs & funding · 3 min read · Last updated 30 October 2026

A care home contract sets out what your relative will pay, what they will receive and how either side can end the arrangement. Read it before any money changes hands, ideally with a translation and with someone who knows local law. This guide gives a checklist of what to look for. It is not legal advice.

Ask for information early

In the United Kingdom, the Competition and Markets Authority (CMA) has published consumer law advice for care homes. It says homes should give prospective residents and their families key information early, before a place is offered, including the fees charged to people who pay for themselves, and should flag important or surprising terms. Other countries have their own rules, but this is a sensible standard to ask any home to meet.

  • A written fee schedule for the type of room and level of care your relative needs.
  • A clear list of what the fee includes and what is charged extra.
  • The full contract, in a language you understand, before you decide.
  • The home's authorisation or licence details.

Fees and extras

  • Included: room, meals, laundry, personal care, nursing, activities. Ask about each.
  • Extras: hairdressing, outings, incontinence products, therapies, medication handling, transport to appointments.
  • Deposits and upfront payments: ask what they are for, whether they are refundable and when. The CMA took action in the UK against a provider that charged residents upfront fees of several thousand pounds before securing a place.
  • Price rises: how often can fees increase, by how much, and with what notice?
  • Level-of-care charges: what happens to the fee if your relative's needs increase?
  • Currency and payment: how are fees paid, and who bears exchange-rate changes?

See our guide to understanding care costs for how to compare quotes.

Terms to look for in the contract

  • Notice period for each side, and what happens to fees paid in advance if your relative leaves or dies.
  • Fees charged after a resident has died or left, and for how long.
  • Under what conditions the home can end the contract or move your relative to another room or unit.
  • Who can sign for your relative, and what happens if they lose capacity to decide.
  • A trial or short-stay period, if available. See respite and short stays.
  • A clear complaints procedure that is easy to find and use.
  • Any clause that surprises you. Ask the home to explain it in writing.

If something looks unfair

According to the CMA, unfair contract terms can be unenforceable in the UK, and non-compliance can lead to court action. Elsewhere, consumer protection rules differ, so ask the home to explain any term you are unsure about and take local legal advice before signing. If there is a problem later, see warning signs and raising concerns.

Frequently asked questions

Is a deposit normal?

Practices vary by country and home. Ask what the deposit is for, whether it is refundable and when, and get the answer in writing. Be cautious about large upfront payments before a place is secured.

Can the home raise fees whenever it likes?

It depends on the contract and local law. Check whether the contract says how often fees can rise and with what notice, and ask what happens if your relative's needs increase.

Should I have the contract translated?

Yes, if it is not in a language you read well. Ask the home for a translation or use a qualified translator, and have a local lawyer review it if possible.

Sources and further reading

This guide is general information only, compiled from the public sources listed above as of the date shown. It is not legal, medical, tax, financial or care advice, and we cannot guarantee that it is complete, accurate or up to date. Rules, thresholds and prices change and differ by country and region, and some sources describe other countries' rules as examples. Check details with the authorities and care homes named, and take professional advice for your own situation before you act. If you spot an error, please email [email protected] and we will correct it.