The Right to Cancel and Down-Payment Limits
Two consumer-protection rules the exam loves: how long a homeowner has to back out, and how little you're allowed to collect up front.
1. The 3-day right to cancel
For a home improvement / home solicitation contract, the buyer may cancel until midnight of the 3rd business day after signing. (Civil Code §1689.5–§1689.14)
- The clock starts when the buyer receives a signed copy of the contract (with the required Notice of Cancellation).
- Cancellation must be in writing. If mailed, it's effective when deposited in the mail (properly addressed, postage prepaid) — not when the contractor receives it.
Longer windows for protected situations:
| Situation | Days to cancel |
|---|---|
| Standard home improvement contract | 3 business days |
| Buyer is a senior citizen (65+) | 5 business days |
| Repair of damage from a declared disaster | 7 business days |