Three Day Cooling Off Period


I am wondering how many of you are at the time of signing the contract are giving your client the three day notice of cancellation (recission) statement, as required by FTC law and most state consumer protection laws.
I know that there has been some confusion in the past about this issue but doing a due and diligent research that anytime a sale of $25 or more is made at the home of the buyer two copies of this notice must be given out with the copy of the contract or receipt.
Are you giving it out as required by law?


I have never heard of anyone doing this…


This actually evolved into being way back in about 1972 and it is law but the previous Bush administration weakened a lot of the enforcement efforts of the Federal Trade Commission which is the federal agency charged with enforcing the rule. Homeowners have three days to back out of any roofing contract that they sign and not only that but the contractor is legally obligated to offer a potential cancellation notice to the consumer at the signing of the roofing contract.





I give them 4 days, assuming they actually sign one.


I have it written on my RCV contract but not my general contract. The way I see it is they can really cancel anytime they want anyway. If I have not done any work or collected money the courts arent going to give you much even if you wanted to take it that far. If you dont want to do business with me then I most likely feel the same.


Most contractor contracts can be canceled before and money is exchanged.


all they sign is a contract with us.

if money is exchanged, then i charge a fee to cancel.

if no money is exchanged (rarely) then see ya later!




when the law first came out in Massachusetts,
in a huge class action lawsuit against the home improvement industry (see Tinmen") movie…failure to
include a notice of right to recission, with receipt of same signed by the homeowner(s), both if married homeowners signing together…were grounds for violation of ch93A…which allowed a court to award triple damages to the damaged homeowner. when I started out in this line of work…at the time Sears
being the largest violator, as well as the largest canvassing home improvement marketing firm in the business, a crown previously worn by TILO, i was on the spiking crew. white aluminum siding was the biggest seller, salesmen received a +par bonus for white, because it was purchased by the trailer load. I kept 100 sq in my shop + accessories, and received tomorrows work by midnight, and on each job, went to it and installed 1 square of siding, always on the front…never cuttting any woodwork, and applying foil paper with company name as high as I could reach. That all ended, supposedly with these new consumer affairs laws.


Meh, they can cancel anytime. I don’t have a problem with it.


So generally a few of you guys are in flagrant violation of federal consumer protection laws, eh?


Isnt this law stating that the contract has to be signed in the customer’s home for there to be a right of recission? i.e. a contract signed via fax does not spur this provision into effect.


Aaron: Right again but the vast majority of contracts signed are those signed at the adress where the roof is going to be worked on, thus, the majority are at the homeowners’ place of residence.


There has been much confusion about contracts and the three-day right of rescission law, commonly referred to as the “cooling off period.” Many consumers are under the impression that these laws apply to any and all consumer purchases. However, this is not true. The right of rescission law applies only to very specific situations. The three day right of rescission law applies to sales made at facilities other than the seller’s place of business. Such locations may be the consumers residence and areas rented on a temporary or short-term basis, such as hotel rooms or convention centers.
quote from texas law website