Ohio Laws on the Rescission of Residential Construction Contracts
Since Sept. 30, 1974, Ohio's laws on the rescission of residential construction contracts allow a specific period of time during which the buyer may legally cancel, or rescind, a purchase contract. The Ohio state legislature also included in its rescission legislation the requirement that a buyer's right to cancel must appear on all contracts and other relevant paperwork, subject to financial damages and the extension of the period of rescission to three years, among other penalties. To be legally binding, a notice of rescission must comply with the following guidelines and requirements.
Other People Are Reading
-
Tick Tock
-
Under Ohio statute 1345.22, which defines a buyer's right to cancel a contract, residential construction purchasers have the right to cancel that construction contract until midnight of the third business day after the day when the contract was signed. For example, if the contract was signed on a Friday afternoon, the signer has until midnight of the next Wednesday to rescind.
Write It Down
-
A notice of cancellation is not required to be in any specific format. As long as the buyer clearly indicates in writing he wants the contract canceled, the rescission is final.
-
Postmarks Count
-
If the notice of rescission is mailed to the address on the contract, the rescission notice is effective on the date of the postmark, not when the rescission notice is delivered.
Summary
-
Purchasers have the right to cancel a residential construction contract until midnight of the third business day after the day when the contract was signed; the rescission must be in in writing and is effective the date of the postmark. It is also effective when the rescission statement is delivered by hand to the builder or his address.
-
References
Resources
- Photo Credit calendar with bow image by Photoeyes from Fotolia.com
