(a) A priority reservation agreement shall mean a cancelable agreement between a prospective life care community applicant, an applicant for a certificate of authority or an operator and a prospective resident, for the purpose of evaluating market demand for a proposed life care community and for the purpose of guaranteeing to prospective residents an opportunity for priority placement in a life care community, under which the prospective resident will pay a refundable priority reservation fee. A priority reservation agreement does not fall within the meaning of contracts or agreements or life care contracts as defined in section 900.1(e) and (k) of this Title. The guarantee of an opportunity for priority placement refers to the prospective resident's option to enter into a life care contract based on his or her sequential placement on the waiting list and is limited to the extent that he or she meets the community's admission eligibility requirements when a placement becomes available.

(b) A priority reservation fee shall mean the refundable sum of money paid by a prospective resident for deposit with the escrow agent for a prospective life care community applicant, an applicant for a certificate of authority or an operator pursuant to a priority reservation agreement.