How to Cancel a Home Remodeling Contract Agreement
If you hire a contractor for your home remodeling project, the contractor typically provides you with a written contract agreement that spells out the terms and conditions of your agreement. In fact, according to the National Association of Home Builders (NAHB), the Federal Trade Commission (FTC) requires that contractors provide a termination agreement for customers to cancel their home remodeling contract if the contract was signed somewhere other than the contractor's office.
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Instructions
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Check for the FTC "cooling off rule." Read your contract to see if contains the FTC cooling-off rule. If you signed the contract outside of the contractor's office, then under this federal rule, you have the right to make a phone call to the contractor's office and cancel the agreement withing three days.
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Read the termination clause. For a contract that does not contain the FTC rule or was signed in the contractor's office, read the agreement to read the termination clause. The termination clause spells out step-by-step what you can do to terminate the agreement.
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Write a termination/cancellation letter. Using the contract termination clause as your guide, type up a letter to the contractor that states your wish to execute the termination clause. Make sure the letter contains the date you type the letter, your name and the address of the home under contract, reason for termination and the effective date of the termination. Include any other items that are required by the termination clause in the contract.
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Call the contractor. Call the contractor's office and alert them that you are exercising your right to terminate the contract. Let them know that you are faxing, emailing and sending a hard copy of the termination in writing to their office. If you do not have the mailing address, email or the fax number, obtain this information while you're on the call.
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Send written backup of the termination. Send the termination letter in the mail with delivery or signature confirmation, email it and fax it to the contractor's office. Keep a copy of the letter and confirmation of each way you sent the letter in case future issues arise.
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Tips & Warnings
In cases where you cannot find a valid reasonto cancel the contract in accordance with the way the agreement is written, you may have to hire an attorney to help you maneuver the legalities.
