Hello I wanted to know if construction contract is valid if a "Notice of right to cancel" was not given?
Also, if a contact is signed for repair or restoration of my residence do I have a 7 business day cancellation period or a 3 day period?
1 reply
Sep 23, 2019
California home improvement contracts have a lot of requirements involved - and a notice of right to cancel the contract must be present. Failure to include required notice language will subject a contractor to discipline, and it could even allow an owner to cancel the contract beyond the cancellation period.
Generally, the timeframe for the cancellation deadline will only begin to run after the owner has actually received notice of their right to cancel. But, if the owner receives a Notice of Right to Cancel and doesn't cancel their contract within the applicable timeframe, then an owner typically won't be able to get out of the contract - at least on the basis of a failure to include cancellation information.
As for cancellation timeframes - California has both a 3-day right to cancel period and a 7-day right to cancel period. How long an owner has to cancel their contract will depend on some factors which I'll discuss below.
3-day Right to Cancel in California
There's a 3-day right to cancel that must be included in California home improvement contracts. However, if any of the following factors apply, then the 3-day cancellation language doesn't have to be included: (1) contract is negotiated at the contractor's place of business; (2) contract is subject to the 7-day right to cancel (more on that shortly); or (3) contract is subject to licensure under the Alarm Company Act.
7-day Right to Cancel in California
The 7-day right to cancel will only apply for written contracts for the restoration of residential property that's been damaged by a sudden catastrophic event for which a state of emergency was declared.
I hope this was helpful! If you've got other questions about California home improvement contracts, here's a great resource: California Home Improvement Contracts Require Specific Language [Free Download].
Garret Murai, another Expert here at the Expert Center, also has a great article on the topic: What You Need to Know About Home Improvement Contracts.
Plus, this resource from the California Department of Consumer Affairs should also be helpful: Consumers' Rights to Cancel Home Solicitation Contracts: Legal Guide K-9.