Three Days

Tiger

I don't know if this is only Illinois law, but I'm reading a consumer rights flier that says a consumer has the right to cancel a contract within 3 days if the sale is made in the home. Also that the contractor can't deprive the consumer of this right by initiating work.

All my contracts (for electrical service/repair work) are made in people's homes, and almost all are started (and completed) within three days. I'm having a problem getting a grasp on the legal issues in having a contract canceled after I've begun, or completed the work.

Dave

Celtic

Technically, you cannot even START until the 3 day period has expired.

NJ has a similar law.

__________________

Chris Johnson

I think that is a pretty common law, we never start before the 3 day period has expired. Look into it you may be safe if it is repairs - emergency type, I'm sure they don't apply to the 3 day rule.

__________________
Chris

Ed the Roofer

That is correct.

Technically and legally, they could back out of the contract within that 3 "Business" Day time frame, unless the work were of an emergency nature which required immediate attention.

I also have read a loophole for this consumer remedy, which relied on the fact that you did not solicit the work, but were contacted directly by the HO's. That is not how the current law is typically applied though.

Also, it is illegal to "Spike" the contract date, and writing in a date 3 days previous to the actual date the contract was signed.

Additionally, you must supply every HO you contract with the specific form and have them sign in 2 spots, with you keeping the bottom left corner to prove that they received it.

Also, to be included with that is the 3-Day right to rescind disclosure statement. Typically, a clause for that needs to be a part of the contract or it can be referred to as an attachment to the contract.

Go to the attorney generals web site for copies of the brochure. It is calle the Consumers Right To Know form.

I attached 2 versions I had on my computer. I think these are the Federal 3-Day Right To Rescind forms.

The 2nd one is the correct one to use.

Attached Files

	NOTICE OF CANCELLATION FOR CONTRACT.doc (20.0 KB, 40 views)
	NOTICE OF RIGHT TO CANCEL CONTRACT.doc (34.5 KB, 63 views)

Patrick

And that my friends is why we have close to a ten page contract to side your house. Its getting crazy out there

Chris Johnson

Oh come on, if you used Hardi it could be a one page contract

__________________
Chris

Celtic

Thanks Ed!

__________________

Patrick

Come on Chris, I finally just stopped having the horrible nightmares in my sleep every night.

Ed the Roofer

Here is some relatively current California guidelines which discusses Federal requirements also.

Ed

"Do not forget that you must give your customers the right to cancel their contract or agreement with you within 3 business days (7 business days for disaster repair in California), for any home improvement work you do over $25 in value. This is a Federal law and California law, as does all state law, follows Federal law.

Many California contractors are confused about the dollar value before the 3 day right to cancel must be given because in California, you do not need to write a contract or even be licensed for work valued under $500.

Even so, you must give the 3 day right to cancel when the value of the work is $25 or more. This means that if you do a roof repair or clean a clogged sewer, for example, and the job value is over $25 but less than $500, you MUST STILL GIVE THE 3 DAY RIGHT TO CANCEL! A customer cannot just voluntarily waive their right to cancel to allow work to begin before the three day period ends under most circumstances.

The law does allow for a waiver of the right to cancel in what is called "the making of emergency or immediate necessity repairs or services that are necessary for the immediate protection of persons or real or personal property."

In this case, the customer can waive, in their own words, their 3-day right to cancel so work can begin immediately. We have form CNW- WAIVER of 3 DAY RIGHT TO CANCEL for use by your customers when a waiver is needed so emergency or immediate necessity repairs or services can begin immediately. If you have an doubt about the way your Company is handling the 3 day or 7 day right to cancel with your home improvement customers, we urge you to contact your attorney to discuss this.

Ed the Roofer

Some further information from the Illinois Legal Advocate site.

Here is that sites link:
http://www.illinoislegaladvocate.org...contentID=1404

Click the blue highlighted link for the required consumer rights brochure.

Ed

"Your Rights Under the Illinois Home Repair and Remodeling Act"

The above law requires the contractor to give you a copy of a pamphlet written by the Illinois Attorney General’s Office called Home Repair: Know Your Rights. The contractor will ask you to sign a statement that says he gave you the pamphlet. Don't sign it unless you have gotten the pamphlet. Don't sign any contract until you have read the pamphlet very carefully. It gives you important advice about what to watch for in a home repair contract.

The contractor must give you a written contract for any work that will cost more than $1,000, and both you and the contractor must sign it. Look this contract over very carefully. Be sure it says what you and the contractor agreed upon, including the work that is to be done, the start and end dates for the work, all the charges, the schedule for payments you must make, and any guarantees. Keep a copy of the signed contract in a place where you can easily find it if you need it.

The contractor must carry a minimum level of insurance to insure against damage and improper home repair.

d-rez

I use this three days to wait for the deposit check to clear. It clears, three days have passed, start work!

A W Smith

Are there any provisions for what "could' be classified an emergency service contract?

__________________
Al Smith
http://www.awsmith.com

kgphoto

California spells it out for its state, but not anybody else's.

We actually have two contracts, one for $500-$750 and one for more. The smaller one allows you to skip the three day rule, but it is limited in scope. On a larger cost contract, the three day part can't be waived except under emergency work and usually they make two contracts, one small for the emergency work and one larger for the reconstruction.

RidgeWalker

I agree with a clients right to cancel an agreement singed in thier home. But on the otherhand if I have a cancellation it makes me ask questions about what happened.

In my opinion and from my personal sales experiance cancellations usually are a result of a weak close. Something was no explained properly, or whatever. There can be alot of things said or not said during the sales process that can make a client cancel.

__________________
Restore My Home Construction
Atlanta Roofing Repair
My SN Profile

Tiger

I'm just looking at this from a practical point of view. I've honed my estimating skills so I can bid almost any job in a few minutes, and have the materials for almost any job on the truck. If I bid and install at the same time, I cut my travel in half. By the way, I've been operating like this for a couple decades.

Dave

Hamburgjl

Dave, I wouldnt change what you are doing. The reality is that if your biggest jobs are a few days long, that is probably the most you stand to lose ( lets say you were working for a lawyer or a teacher and they either knew the law and planned to rip you off, or they thought they knew evrthing about everything). Your odds are probably very good.

(off topic) The problem with a lot of the laws set up to protect consumers is that they make it near impossible to do business in a sane way. If you were in New York, you would have to deposit all checks received into an escrow account and keep track of how the checks you write with those funds apply to that specific job. Sounds easy with a handfull of jobs but its crazy with more than that. The end result is that very few if any comply with the law.

__________________
The superior man understands what is right; the inferior man understands what will sell. Confucius
By working faithfully eight hours a day you may get to be boss and work twelve hours a day. Robert Frost