Protect Yourself From Storm Chaser’s Contracts
Storm chasers show up to cities where hail hits the town and they pressure homeowners to sign contracts. They use all sorts of tactics to get that signature. The good news is that if you fall for it, there is a way out.
In Nebraska, the “3-day cancellation law,” also known as the Home Solicitation Sales Act allows consumers to cancel certain contracts within three (3) business days of signing, providing a “cooling-off” period.
Home Solicitation Sales Act
The Home Solicitation Sales Act (Neb. Rev. Stat. § 69-1601 to 69-1607) protects consumers from high-pressure sales tactics by giving them a window to cancel contracts.
The Act applies to sales made in the customer’s home or sales that occur in a location other than the seller’s regular place of business.
The Act does not apply to the following sales:
- Sales under $25.00,
- Sales that are the result of prior negotiations made by the consumer at the business’ permanent location,
- Purchases of items needed to meet an emergency when the consumer made the initial contact with the business,
- Sales of securities and commodities,
- Transactions defined as consumer rental purchase agreements, or
- Sales involving home repair or home maintenance when the homeowner initiated the sales call.
It’s the LAW
The Act requires that all home solicitation sales contracts include a notice of the Three-Day Right to Cancel with this heading: “BUYER’S RIGHT TO CANCEL,” in letters of not less than ten-point boldface type and that the notice appear “conspicuous.” Under the heading, the notice must read as follows:
You may cancel this agreement by mailing a written notice to (Insert name and mailing address of seller) before midnight of the third business day after you signed this agreement. If you wish, you may use this page as that notice by writing “I hereby cancel” and adding your name and address.
Under the Act, a buyer may cancel a home solicitation sale until midnight of the third (3rd) business day after the seller has provided the required notice.
At The Time of Mailing
The notice of cancellation is required to be by mail, addressed to the seller, and is deemed given at the time of mailing, not when the business receives it.
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This blog is NOT legal advice. It is not insurance policy advice. You should consult and attorney and/or a licensed insurance agent for your specific situation.
