In this guide
- What a CHOW is
- Why the license transfer can make or break a deal
- How long it takes
- What states typically require
- How to protect yourself in the contract
Key takeaways
- A CHOW is the state''s approval to move a care-home license to a new owner.
- You generally can''t operate until it''s approved — plan for it, don''t bolt it on late.
- Timelines commonly run 60–120 days and vary by state.
- Make closing contingent on CHOW approval (or use an interim management/operations-transfer agreement).
What is a CHOW?
A change of ownership (CHOW) is the licensing step that transfers an assisted living facility''s operating license from the seller to the buyer. A care home''s license is tied to its operator, not just the building, so buying the real estate doesn''t automatically let you run it. The state reviews the incoming owner and issues (or reissues) the license before you can legally take over care.
This is one of the biggest differences between buying a care home and buying a house — see how to buy an assisted living facility for the full process.
Why does the license transfer matter so much?
It''s the step most likely to delay or derail an unprepared deal. If the CHOW isn''t approved by closing, the buyer can be left owning a facility they can''t operate — or the seller has to keep running it under an interim arrangement. Lenders also watch it closely, since the loan depends on the buyer being able to run the business.
How long does a CHOW take?
Commonly 60–120 days, but it varies widely by state and how complete your application is. Start early, submit a clean packet, and keep the seller engaged, since states often need information from both parties. Build the expected timeline into your purchase agreement rather than assuming a fast close.
What do states typically require?
Requirements differ by state, but a CHOW packet usually includes a new-owner license application, background checks and fingerprinting, proof of financial capacity, an attestation of continued compliance, and sometimes a licensing survey or inspection. Your due-diligence review should confirm the current license is in good standing before you get this far.
How do you protect yourself?
Make closing contingent on CHOW approval, and line up an interim operating plan. Common protections: a licensing contingency in the purchase agreement, an interim management or operations-transfer agreement so care continues legally during the gap, and holdbacks tied to approval. Budget for the total cash and timeline this adds — the same planning covered in the cost to buy an assisted living facility.
When you''re ready to buy and want a specialist who has run these transfers before, connect with a Buy Sell Assisted Living expert.
Informational only — not legal, financial, or tax advice. Licensing rules vary by state; confirm your state''s CHOW requirements with the licensing agency and qualified counsel.