3-Day Cancellation Under Ohio’s HSSA: What Contractors Must Know
Here’s a nightmare for residential contractors that actually can come true – and often does.
You’ve successfully completed a project. The homeowner seems to love the work. But now, they want a refund – and you may have to give it to them.
What’s wrong with the work you did? Nothing at all.
So what’s the problem then? It’s your contract!
If you meet with your customers at their home at any point during the quoting or contracting process for a residential construction project in the State of Ohio, and you don’t use a written contract, or an inadequate contract, you’re almost definitely not complying with a law imposed on construction contractors: the Home Solicitation Sales Act (“HSSA,” O.R.C. 1345.21).
The HSSA gives customers the right to cancel a residential construction contract within 3 business days of entering into it.
To comply with the HSSA, the contractor must do two things:
1) Include key language above the customer’s signature line notifying them of their right to cancel, and…
2) Provide a separate “Notice of Cancellation” form that the customer can use to notify the contractor if she or he decides to cancel the contract within the 3-day period.
If you fail to do both of these things in a home construction contract (or worse, you do neither because there is no contract), the customer’s 3-days-to-cancel clock *never* starts running.
That means that the customer could cancel and demand a refund at any time — during, or even after, your work is completed.
And without a contract, the law may back them up.
Most customers just want you to do a good job, and will offer you the chance to fix any issues they have. But some will absolutely take advantage of this statute. You can avoid the problem entirely if you have the right contract.
Things could still go sideways during the project, of course. But if they do, at least you’ll stand a greater chance in court.
If you’re a home construction contractor and would like help with your residential construction contract, fill out our contact us form. Reference this article and you’ll get a complimentary consultation with one of our legal team members.
You can also find more related information in our Guide to Avoiding Residential Construction Contract Nightmares.
