What do I need to do to comply with the Home Solicitation Sales Act?

First, every home solicitation sale must be evidenced by a written agreement or written offer to purchase in the same language as used in the oral sales presentation. The written agreement or offer must contain: 1) the name and address of the seller; 2) the signature of the buyer; 3) the date the buyer actually signs; and 4) the following notice in bold typeface minimum ten point size and in immediate proximity to the space where the buyer is to sign: “You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation for an explanation of this right.” You as the seller MUST leave a copy of this writing with the seller.

Second, every written agreement or written offer described above must be accompanied by a document captioned “NOTICE OF CANCELLATION.” The Notice must be attached to the agreement or offer in duplicate, written in a typeface minimum of ten point size in the same language as the agreement or offer. The content of the notice should be exactly as follows:




(enter date of transaction)

You may cancel this transaction, without any penalty or obligation, within three business days from the above date.

If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within ten business days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be cancelled.

If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale; or you may if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.

If you do make the goods available to the seller and the seller does not pick them up within twenty days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice, or send a telegram, to (Name of seller)______________, at (address of seller’s place of business)_______________
not later than midnight of (at least three days after date of transaction).

I hereby cancel this transaction.

Buyer’s signature

You as the seller must furnish two copies of the Notice of Cancellation to the buyer. Before doing so, you must complete both copies by entering your business name, the address of your place of business, the transaction date and a cancellation deadline, which must be no less than three business days following the date of the transaction. If you operate your business from home, you must include your home address on the Notice of Cancellation so that the buyer can locate you.

If you do not provide the Notice of Cancellation, the buyer can cancel the contract ANY TIME until three days after you provide the Notice. If you never provide the Notice, the buyer has the right to cancel any time, even if you have already provided the goods or services.

In addition to requiring the above-described written agreement and Notice, a seller’s conduct and his/her representatives’ conduct is subject to control by the Act. In connection with any home solicitation sale, a seller may not do any of the following:

1) Include in the sales contract any confession of judgment or waiver of rights by the buyer, specifically including the buyer’s right to cancel the sale.

2) Misrepresent in any manner the buyer’s right to cancel.

3) Negotiate, transfer, sell or assign any note or other evidence of indebtedness to a finance company or other third party prior to midnight of the fifth business day following the day the contract for the goods or services was signed.

A seller must do all of the following that apply to the transaction:

1) Inform each buyer orally, at the time he/she signs the contract for the goods or services of his/her right to cancel.

2) Honor all valid notice(s) of cancellation by buyers.

3) Retain all notice(s) of cancellations by buyers and all envelope(s) in which the notice(s) are delivered during the time in which an action to enforce the sale could be commenced. If neither notice of cancellation nor an envelope in which a notice is delivered states the date on which the notice was delivered, the seller shall write on the notice of cancellation the date it was delivered to the seller.

4) Within ten days of receipt of a valid notice of cancellation, do all of the following (the “ten day requirements”):

a) Refund all payments made under the contract or sale;

b) Return any goods or property traded in, in substantially as good condition as when received by the seller;

c) Cancel and return any note, negotiable instrument, or other evidence of indebtedness executed by the buyer in connection with the contract or sale;

d) Take any action necessary or appropriate to reflect the termination of any security interest or lien created under the sale or offer to purchase.

e) Notify the buyer whether the seller intends to repossess or abandon any goods that have been shipped or delivered to the buyer.

In our next blog post coming next week, we will discuss what a buyer can do if you fail to comply with the Act.

If you have questions regarding the Act, please contact your attorney. This post is meant for information purposes only and is not intended to constitute legal advice or establish an attorney-client relationship between you and Poplar & Mason, LLC. Poplar & Mason, LLC does not represent you unless and until you have a written agreement with us.