Discussing The Right Of Rescission

June 10, 2005
/ Print / Reprints /
ShareMore
/ Text Size+
Henry Hart III
ATLANTIC CITY, N.J. - Pennsylvania contractors stung by residential customers who back out of contracts and refuse to pay have a weapon to help them fight back - and the same protection may be available to contractors in other parts of the United States.

Henry Hart III, Pennsylvania's senior deputy attorney general, spoke with members of the New Jersey and Pennsylvania chapters of the Plumbing-Heating-Cooling Contractors Inc. (PHCC) during the group's second annual "state-in-state" trade show at the Trump Taj Mahal Casino & Hotel.

Hart said the right of rescission is an answer to "all of the bad contractors out there."

He said that it gives homeowners the right to change their minds and cancel an agreement within 72 hours after it has been signed. Hart passed out a sample of a PHCC contract which contains the right of rescission verbiage:

"You, the owner/tenant may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction; for an explanation of this right, see notice of cancellation form. Canceling after work has begun or after you have waived your right to cancel is unlawful."

Some of the contractors in attendance commented that the right of rescission is harmful to them because it favors the homeowner and leaves contractors with no recourse to collect money that may have been paid for the labor it takes to set up a job. "The law is very protective of the consumer," said Hart. "It was developed to stop unscrupulous contractors."

Other contractors at the seminar questioned how right of rescission can work if a homeowner needs an emergency repair done within 72 hours. Hart revealed a new "Emergency Work Authorization Form." If a customer can't wait for a repair to be completed within 72 hours, he or she can waive the right to cancel the agreement.

But what constitutes an emergency? Hart said, "There should be a threat of serious bodily injury or death. In that case, this is a time where you wouldn't need the emergency work authorization form."

Contractors questioned whether the form was necessary during routine work for customers they know and have worked with in the past. "The handshake has gone the way of the dinosaur," he said. "You are always better off when you can tell a judge, ‘I complied with the law.'"

Hart reminded contractors that his office does not "go out to check and see if all contractors are using these forms." His office only acts when there is a customer complaint.

Some contractors were still not satisfied with what they heard and Hart encouraged them to get behind changes in the laws - changes that make sense to legitimate contractors.

"The original right of rescission law was not drafted with you in mind," he told attendees. "It was drafted to protect against the door-to-door companies."

Publication date: 06/13/2005

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

Recent Articles by John Hall

You must login or register in order to post a comment.

Vacation Plan Purchase

Finley Torelli
April 8, 2008
Hello, Does the PA Right to Recision law pertain to ALL contracts signed in PA. This contract says that it does not and I'm wondering if this is legal. Thanks It was purchases by my daughter and her boyfriend for a lot of money under a very tempting sales pitch that they went to to get their "free" cruise.

waiving your 3 day right of rescission

dcdubbs
March 26, 2009
in rare cases the borrower can voluntarily waive their right of rescission as discussed here: http://www.bankapedia.com/mortgage-encyclopedia/faqs/536-can-i-waive-my-right-of-recision I wonder if a contractor could making waiving this right a contingency in their contract

Right to Rescind with real estate

Pat Sharkey
July 10, 2009
Does the buyer of a piece of real estate still have the right to rescind even after settlement occurs?

real estate contract

john
March 12, 2010
I signed a contract agreeing to purchase a property in PA today and have changed my mind. Do I have 3 days to cancel the agreement and get my deposit back?

Multimedia

Videos

Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

Podcasts

Kyle Gargaro, editor-in-chief of The NEWS, hosted the 2014 ACCA CEO Forum. At the event, six well-known, highly respected company executives, Gary Michel, Ingersoll Rand/Trane; Chris Nelson, Carrier Corp.; Chris Peel, Rheem Mfg. Co.; Rod Rushing, Johnson Controls; Brent Schroeder, Emerson Climate Technologies; and Doug Young, Lennox; provided individual industry outlooks and fielded questions directly from attending contractors. Listen to the entire event on the NEWSMakers podcast. Posted on April 14.

More Podcasts

THE MAGAZINE

ACHRNEWS

NEWS 04-14-14 cover

2014 April 14

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

SERVICE CALLS POLL

Which statement on service calls best applies to your business?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con