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The 3 Day Right to Cancel a Purchase

The 3-Day Right to Cancel a Purchase

Many consumers are under the impression that they have a 3-day right to cancel any and all consumer purchases. However, this is not true. The right to cancel law applies only to very specific situations.

The 3-day right to cancel law applies to sales made at facilities other than the seller's place of business. Such locations may be the consumer's residence and places rented on a temporary or short-term basis, such as hotel rooms or convention centers.

A "home solicitation transaction" takes place whenever a consumer purchases goods or services for more than $25 payable in cash or installments at a place other than the seller's place of business. The place other than the seller's place of business may be the consumer's home, but it may also be a place that the merchant has rented on a temporary basis, such as a hotel room or convention center.

Door-to-door sales laws do not apply to certain transactions, such as:

  • Sales of insurance and farm equipment;
  • Real estate purchases under $100;
  • A sale where an attorney or broker assists in the transaction;
  • Sales made pursuant to prior negotiations at the merchant's business establishment, where the sale is the result of those negotiations; and
  • Sales conducted entirely by mail or telephone, with no other contact between the buyer and seller.

Under Texas law, the door-to-door seller must advise you orally and in writing that you have a right to cancel the sale within three days. He or she must also give you a contract or receipt stating the date of the sale, the name and address of the merchant, and a statement of your right to cancel the contract which includes the address where you send your cancellation notice.

The contract or receipt and the notice of your right to cancel must be in the same language as that principally used in the sales presentation. For example, if the buyer and the salesperson spoke in Spanish during the sale, the contract must be in Spanish.

Find out more on canceling a sale at texasattorneygeneral.gov.