How to Cancel a Construction Contract Within 3 Days in Maryland
The United States Federal Reserve System's Truth in Lending Law was created to ensure that consumers would be treated fairly by creditors. Section 226.15 concerns the Right of Rescission, or the open-end credit clause. The Right of Rescission allows the consumer three days to rescind or cancel a signed contract. If the consumer was not given this federal notice, she may have three years in which to cancel the contract even if the work has been completed. Many states such as Maryland also have laws concerning the three day option to cancel a contract.
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Instructions
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Create a letter indicating your desire to cancel the contract. Include pertinent information such as your account number, so it can be readily identified.
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Send the letter by postal mail, fax or deliver or have it delivered to the contractor. The letter must be in the contractor's hands by midnight of the third day since the contract was signed.
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Check the contract that was signed to ensure that the contractor gave you the required copies of the Truth in Lending regulation. Most contracts contain a statement or paragraph regarding the three day right to cancel. The regulation also states that the notice must be in clear visible type using at least a 10 point font. Contractors who use illegal contracts in the state of Maryland are subject to severe penalties.
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Contact the contractor to verify that the notice was received and to make an agreement on the return of any down payment you may have made.
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