What is the 3-day Right to Cancel Law?
Texas has a consumer protection law requiring vendors to give a customer a 3-day right to cancel in certain circumstances. What parts of this law apply to roofing companies and how can you abide by the law?
The law’s primary application is for marketing your roofing business through door knocking. We know that door-to-door sales is effective, so what should you do?
The law says if you, the seller of goods or services, approach a prospect anywhere except your place of business, and they make a purchase, you must give them a 3-day cooling off period.
To begin, we want to make it clear what is NOT included in the law.
- Business obtained through a referral
- Commercial property, including rent houses
- Business developed through a long-term relationship that started well before the current “solicitation”
If one of these exceptions doesn’t apply, you must:
- Tell the buyer that they have a 3-day right to cancel, in the same language used in sales presentation.
- Include in your contract a notice of the right to cancel, immediately adjacent to the signature block in a minimum 10-point bold font.
- Two paper copies of the cancellation form that includes your company name and address.
Our recommendation:
While perhaps not required, we recommend – for many reasons – that you consider including the 3-day right to cancel in all residential contracts. Finally, whether or not the right is extended to the residential owner, consider whether you want to do business with someone who no longer wants to do business with you.
Ensley Benitez Law, PC
8140 Walnut Hill Lane, Ste. 835
Dallas, Texas 75231
817-538-6894
© Karen Ensley and Brian Benitez, Ensley Benitez Law, PC, 2022. All rights reserved. This article is provided for educational reasons exclusively and is not meant to be construed as legal advice. Ensley Benitez Law, PC, will represent you only after being retained and that agreement is made in writing.
