Cancelling a home improvement contract
If you signed at your home, the FTC's Cooling-Off Rule may let you cancel until midnight of the third business day after the sale. Many states have their own rules for home improvement contracts too, sometimes with more time. Cancel in writing, and keep proof of when you sent it.
A homeowner wrote up what they learned after a long in-home sales pitch for replacement windows ended with them signing on the spot. It's a familiar story: a big discount that's only good tonight, a price that drops each time you hesitate, and a contract signed before anyone has slept on it.
The federal rule
The FTC's Cooling-Off Rule gives you three days to cancel certain sales made at your home, workplace or dorm, or at a seller's temporary location like a hotel room or fairground. It covers sales of $25 or more at your home and $130 or more at temporary locations. The seller must tell you about your right to cancel and give you cancellation forms. If they didn't, you can write a cancellation letter; it must be postmarked within three business days of the sale.
The rule has exceptions, including sales made entirely online, by mail or by phone, and some emergency repairs. Read the FTC's page for the full list.
State rules
Many states add their own cancellation rights for home improvement or home solicitation sales, and some require specific notice language in the contract. Your state attorney general's consumer office or contractor licensing board can tell you what applies.
How to cancel
- Sign and date the cancellation form if you were given one, or write a short letter saying you're cancelling the contract dated [date].
- Send it in a way you can prove, like certified mail, before the deadline.
- Keep a copy, and the receipt.
Under the FTC rule, the seller must refund your payments within 10 days of getting your cancellation. If you're past the deadline, read the contract's own cancellation terms and talk to an attorney.
This is general information, not legal advice. States differ on what a home improvement contract and its changes must contain. Check with your state’s contractor licensing board or an attorney.