This guide discusses state laws which provide a right to cancel certain consumer contracts or return purchases.
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A statutory right to cancel a contract or return a purchase because you change your mind is not the norm in Texas. State law grants a right to cancel — also called a “right of rescission” or a “cooling off” period — in only a few specific instances.
This guide provides a list of statutes that provide consumers with a right to cancel a contract or an agreement if certain conditions are met. We caution that it is not an exhaustive list.
If you do not see a statute that governs your particular situation, you may be bound by your agreement with the seller. Consult an attorney for more information about your right to cancel a contract or purchase.
Below is a list of Texas laws that govern the right to cancel certain consumer contracts.
Door-to-door sales or sales made at a place other than the seller's place of business. Goods or services purchased with a credit card from a telephone solicitor.Retail installment contracts for goods and services (excluding motor vehicles) may be cancelled under certain conditions. These sales are generally between the retail buyer and seller.
Motor vehicle installment contracts may be cancelled under certain conditions. Installment sales are between the retail buyer and seller and do not apply to third-party loan providers.
Installment contracts for commercial motor vehicles may be cancelled under certain conditions.Allows a consumer to cancel a contract with a public insurance adjuster within 72 hours of signature.
Health spa contracts may be fully or partially refunded under certain conditions.Contracts for sale, exchange, or lease of a manufactured home may be cancelled under certain conditions.
Service contracts (also commonly called extended warranties) may be cancelled under certain conditions.
Provides for the purchaser's right to cancel an executory contract (also known as an installment land contract, a contract for deed, or "lease to own"). Notice provisions and the time frame for cancellation are covered.
Provides a right to cancel the purchase of a condominium unit if certain requirements are not met by the seller.
Allows a purchaser to cancel a timeshare contract. Provides a limited right to cancel a membership camping contract under certain conditions.Texas homestead protections provide for a limited right to cancel a remodeling contract that would put a lien on the homestead.
Texas homestead protections provide a right to rescind a home equity loan (also known as a "reverse mortgage").
Below are some of the federal laws that govern common consumer purchases.
This regulation from the Federal Reserve Board is part of the Truth in Lending Regulation Z. It provides for the cancellation information for extensions of credit which will place a lien on the homestead.
This regulation from the Federal Trade Commission discusses notice of cancellation for door-to-door purchases.
Because Texas and federal law may not be easy to understand, below you'll find a collection of resources that help to explain the law.
Our Legal FAQ discusses the common misconception that there is a 3-day right to cancel any contract in Texas.
Texas Attorney General's brochure explaining when the 3 day right to cancel applies.Hosted on Texas Law Help, this article is an excerpt from the Houston Bar Association's Consumer Law Handbook that discusses some basic aspects of contract law. The article looks at written and verbal contracts, the age a person needs to be to enter into a contract, and damages if a contract is breached.
The Manufactured Housing Division (MHD) of the Texas Department of Housing and Community Affairs administers the Texas Manufactured Housing Standards Act. This consumer information sheet discusses the right of rescission.
Richard Alderman, a Texas attorney who helped draft the Deceptive Trade Practice Act, addresses the question of whether one has 3 days to return a new vehicle.
Richard Alderman also answers a question related to a store refusing to issue a refund.This information from the Federal Trade Commission discusses the right to cancel door to door purchases.
