What must a door-to-door home improvement contract include?
Short answer. A notice of the consumer's right to cancel within 3 business days, under the Maryland Door-to-Door Sales Act, along with every element any home improvement contract needs. Without the notice, the consumer can cancel at any time.
Work it through
You're the contractor. Pick what you'd do, then see how each choice plays out.
Brenda Hayes
Your salesperson who goes door-to-door generating leads
Your salesperson Brenda is excited — she signed up Mrs. Torres, an elderly widow, for a $15,000 roof repair during a door-to-door visit yesterday. She brings you the signed contract.
You notice the contract doesn't include a notice of the homeowner's right to cancel.
- Correct
Under the Maryland Door-to-Door Sales Act and COMAR regulations, any home improvement contract resulting from a door-to-door solicitation MUST include a notice of the consumer's right to cancel within 3 business days. Failure to include this notice means the consumer can cancel at ANY time. You also need to train Brenda on these requirements immediately.
- Wrong
This is a serious violation of the Door-to-Door Sales Act. An elderly widow signed a $15,000 contract at her door without being informed of her right to cancel. This is exactly the kind of complaint that triggers MHIC investigation and can result in Guaranty Fund claims. The contract is voidable, and you face penalties for both the missing cancellation notice and potential elder exploitation.
- Partial
Adding the notice after the fact is better than nothing, but the 3-business-day clock should have started when the original contract was signed. The proper remedy is to void the original contract, provide the cancellation notice, and execute a new contract. Also — sending the salesperson who made the original mistake back alone to an elderly client's home is not ideal optics.
All 9 cancellation rights & consumer protection questions
- What must a door-to-door home improvement contract include?
- Does every homeowner have a 3-day right to cancel?
- Does a home show sale carry a 3-day right to cancel?
- What should you do about a pressured sale to an elderly homeowner?
- What happens when a contractor is accused of exploiting an elderly client?
- Can contractors raise prices after a storm in Maryland?
- Is writing a second contract for the insurance company fraud?
- Can you sign an invoice for more than the work you did?
- How does COMAR regulate model home and referral offers?