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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Aguiar-Curry</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Aguiar-Curry</ns0:Name>
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<ns0:Title> An act to amend Sections 7159 and 17511.5 of the Business and Professions Code, and to amend Sections 1689.6, 1689.7, 1689.20, and 1689.21 of the Civil Code, relating to contracts. </ns0:Title>
<ns0:RelatingClause>contracts</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Home improvement and home solicitation: right to cancel contracts: notice.</ns0:Subject>
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<ns0:DigestText>
<html:p>Existing law generally regulates various types of consumer transactions, including home improvement and home solicitation contracts and offers. Existing law authorizes a buyer to cancel certain home improvement and home solicitation contracts or offers until midnight of the 3rd business day after the day on which the buyer signs an agreement or offer to purchase that complies with specified requirements. Existing law provides an alternate 5-day period of time to cancel the contracts or offers described above if the buyer or property owner is a senior citizen, as defined, for contracts entered into, or offers to purchase conveyed, on or after January 1, 2021. Existing law also provides a 7-day period of time to cancel the contracts or offers described above if the contract is for the repair or restoration of residential premises damaged by any sudden or catastrophic event for which a state
of emergency or local emergency has been declared. Existing law requires a home improvement or home solicitation contract or offer to include a notice of cancellation form with specified statements as to the buyer’s right to cancel, including how a notice of cancellation may be delivered to the seller.</html:p>
<html:p>This bill would require that notice of cancellation to also be delivered by email and require the seller to include in the contract an email address to which the notice of cancellation is to be sent and a telephone number to assist the buyer with locating and filling out the notice of cancellation, and would make conforming changes.</html:p>
<html:p>Existing law, the Contractors State License Law, defines and regulates the activities of contractors and provides for their licensure, regulation, and discipline by the Contractors State License Board within the Department of Consumer Affairs. Existing law governing home improvement contracts
specifies that the failure of a licensee, their agent or salesperson, or a person subject to the Contractors State License Law to provide certain information, notices, and disclosures in the contract, or to otherwise fail to comply with those provisions, is cause for discipline.</html:p>
<html:p>This bill would authorize a buyer to file a complaint with the Contractors State License Board if a notice of cancellation is not included in or attached to a home improvement contract, as provided.</html:p>
<html:p>This bill would incorporate additional changes to Section 7159 of the Business and Professions Code proposed by SB 517 to be operative only if this bill and SB 517 are enacted and this bill is enacted last.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_19AD2A50-EB54-4B29-BDB2-27C2CA58A149">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 7159 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
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<ns0:Num>7159.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
This section identifies the projects for which a home improvement contract is required, outlines the contract requirements, and lists the items that shall be included in the contract, or may be provided as an attachment.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
This section does not apply to service and repair contracts that are subject to Section 7159.10, if the contract for the applicable services complies with Sections 7159.10 to 7159.14, inclusive.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
This section does not apply to the sale, installation, and servicing of a fire alarm sold in conjunction with an alarm system, as defined in Section 7590.1, if all costs attributable to making the fire alarm system operable, including sale and installation
costs, do not exceed five hundred dollars ($500), and the licensee complies with the requirements set forth in Section 7159.9.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
This section does not apply to any costs associated with monitoring a burglar or fire alarm system.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Failure by the licensee, their agent or salesperson, or by a person subject to be licensed under this chapter, to provide the specified information, notices, and disclosures in the contract, or to otherwise fail to comply with any provision of this section, is cause for discipline.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
If the applicable “Notice of Cancellation” is not included in or attached to the contract as required by this section, the buyer may file a complaint with the Contractors State License Board.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, “home
improvement contract” means an agreement, whether oral or written, or contained in one or more documents, between a contractor and an owner or between a contractor and a tenant, regardless of the number of residence or dwelling units contained in the building in which the tenant resides, if the work is to be performed in, to, or upon the residence or dwelling unit of the tenant, for the performance of a home improvement, as defined in Section 7151, and includes all labor, services, and materials to be furnished and performed thereunder, if the aggregate contract price specified in one or more improvement contracts, including all labor, services, and materials to be furnished by the contractor, exceeds five hundred dollars ($500). “Home improvement contract” also means an agreement, whether oral or written, or contained in one or more documents, between a salesperson, whether or not they are a home improvement salesperson, and an owner or a tenant, regardless of the number of residence or dwelling units
contained in the building in which the tenant resides, which provides for the sale, installation, or furnishing of home improvement goods or services.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In addition to the specific requirements listed under this section, every home improvement contract and any person subject to licensure under this chapter or their agent or salesperson shall comply with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The writing shall be legible.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any printed form shall be readable. Unless a larger typeface is specified in this article, text in any printed form shall be in at least 10-point typeface and the headings shall be in at least 10-point boldface type.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Before any work is started, the contractor shall give the buyer a copy of the contract signed and
dated by both the contractor and the buyer. The buyer’s receipt of the copy of the contract initiates the buyer’s rights to cancel the contract pursuant to Sections 1689.5 to 1689.14, inclusive, of the Civil Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The contract shall contain on the first page, in a typeface no smaller than that generally used in the body of the document, both of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The date the buyer signed the contract.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The name, address, and email address of the contractor to which the applicable “Notice of Cancellation” is to be sent, immediately preceded by a statement advising the buyer that the “Notice of Cancellation” may be sent to the contractor at the address or email address noted on the contract.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The telephone number of the contractor, or the
contractor’s representative, to assist the buyer with locating and filling out the “Notice of Cancellation.”
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The contract shall include a statement that, upon satisfactory payment being made for any portion of the work performed, the contractor, prior to any further payment being made, shall furnish to the person contracting for the home improvement or swimming pool work a full and unconditional release from any potential lien claimant claim or mechanics lien authorized pursuant to Sections 8400 and 8404 of the Civil Code for that portion of the work for which payment has been made.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A change-order form for changes or extra work shall be incorporated into the contract and shall become part of the contract only if it is in writing and signed by the parties prior to the commencement of any work covered by a change order.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The contract shall contain, in close proximity to the signatures of the owner and contractor, a notice stating that the owner or tenant has the right to require the contractor to have a performance and payment bond.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
If the contract provides for a contractor to furnish joint control, the contractor shall not have any financial or other interest in the joint control.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
The provisions of this section are not exclusive and do not relieve the contractor from compliance with any other applicable provision of law.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A home improvement contract and any changes to the contract shall be in writing and signed by the parties to the contract prior to the commencement of work covered by the contract or an applicable change order and, except as provided in paragraph (8) of subdivision (a) of Section 7159.5,
shall include or comply with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The name, business address, and license number of the contractor.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If applicable, the name and registration number of the home improvement salesperson that solicited or negotiated the contract.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The following heading on the contract form that identifies the type of contract in at least 10-point boldface type: “Home Improvement.”
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The following statement in at least 12-point boldface type: “You are entitled to a completely filled in copy of this agreement, signed by both you and the contractor, before any work may be started.”
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The heading: “Contract Price,” followed by the amount of the contract in dollars and cents.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
If a finance charge will be charged, the heading: “Finance Charge,” followed by the amount in dollars and cents. The finance charge is to be set out separately from the contract amount.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
The heading: “Description of the Project and Description of the Significant Materials to be Used and Equipment to be Installed,” followed by a description of the project and a description of the significant materials to be used and equipment to be installed. For swimming pools, the project description required under this paragraph also shall include a plan and scale drawing showing the shape, size, dimensions, and the construction and equipment specifications.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
If a downpayment will be charged, the details of the downpayment shall be expressed in substantially the following form, and shall include the text of the notice as
specified in subparagraph (C):
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The heading: “Downpayment.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A space where the actual downpayment appears.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The following statement in at least 12-point boldface type:
</html:p>
<html:br/>
<html:p>“THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE CONTRACT PRICE, WHICHEVER IS LESS.”</html:p>
<html:br/>
<html:p>
(9)
<html:span class="EnSpace"/>
If payments, other than the downpayment, are to be made before the project is completed, the details of these payments, known as progress payments, shall be expressed in substantially the following form, and shall include the text of the statement as specified in subparagraph (C):
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A
schedule of progress payments shall be preceded by the heading: “Schedule of Progress Payments.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Each progress payment shall be stated in dollars and cents and specifically reference the amount of work or services to be performed and materials and equipment to be supplied.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The section of the contract reserved for the progress payments shall include the following statement in at least 12-point boldface type:
</html:p>
<html:br/>
<html:p>“The schedule of progress payments must specifically describe each phase of work, including the type and amount of work or services scheduled to be supplied in each phase, along with the amount of each proposed progress payment. IT IS AGAINST THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A
DOWNPAYMENT.”</html:p>
<html:br/>
<html:p>
(10)
<html:span class="EnSpace"/>
The contract shall address the commencement of work to be performed in substantially the following form:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A statement that describes what constitutes substantial commencement of work under the contract.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The heading: “Approximate Start Date.”
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The approximate date on which work will be commenced.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
The estimated completion date of the work shall be referenced in the contract in substantially the following form:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The heading: “Approximate Completion Date.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The approximate date of
completion.
</html:p>
<html:p>
(12)
<html:span class="EnSpace"/>
If applicable, the heading: “List of Documents to be Incorporated into the Contract,” followed by the list of documents incorporated into the contract.
</html:p>
<html:p>
(13)
<html:span class="EnSpace"/>
The heading: “Note About Extra Work and Change Orders,” followed by the following statement:
</html:p>
<html:br/>
<html:p>“Extra Work and Change Orders become part of the contract once the order is prepared in writing and signed by the parties prior to the commencement of work covered by the new change order. The order must describe the scope of the extra work or change, the cost to be added or subtracted from the contract, and the effect the order will have on the schedule of progress payments.”</html:p>
<html:br/>
<html:p>
(e)
<html:span class="EnSpace"/>
Except as provided in paragraph (8) of subdivision
(a) of Section 7159.5, all of the following notices shall be provided to the owner as part of the contract form as specified or, if otherwise authorized under this subdivision, may be provided as an attachment to the contract:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A notice concerning commercial general liability insurance. This notice may be provided as an attachment to the contract if the contract includes the following statement: “A notice concerning commercial general liability insurance is attached to this contract.” The notice shall include the heading “Commercial General Liability Insurance (CGL),” followed by whichever of the following statements is both relevant and correct:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) does not carry commercial general liability insurance.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) carries
commercial general liability insurance written by (the insurance company). You may call (the insurance company) at _____ to check the contractor’s insurance coverage.”
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) is self-insured.”
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
“(The name on the license or ‘This contractor’) is a limited liability company that carries liability insurance or maintains other security as required by law. You may call (the insurance company or trust company or bank) at ____ to check on the contractor’s insurance coverage or security.”
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A notice concerning workers’ compensation insurance. This notice may be provided as an attachment to the contract if the contract includes the statement: “A notice concerning workers’ compensation insurance is attached to this contract.” The notice shall include the heading “Workers’
Compensation Insurance” followed by whichever of the following statements is correct:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) has no employees and is exempt from workers’ compensation requirements.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) carries workers’ compensation insurance for all employees.”
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A notice that provides the buyer with the following information about the performance of extra or change-order work:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A statement that the buyer may not require a contractor to perform extra or change-order work without providing written authorization prior to the commencement of work covered by the new change order.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A statement informing the buyer that extra
work or a change order is not enforceable against a buyer unless the change order also identifies all of the following in writing prior to the commencement of work covered by the new change order:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The scope of work encompassed by the order.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The amount to be added or subtracted from the contract.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The effect the order will make in the progress payments or the completion date.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A statement informing the buyer that the contractor’s failure to comply with the requirements of this paragraph does not preclude the recovery of compensation for work performed based upon legal or equitable remedies designed to prevent unjust enrichment.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A notice with the heading “Mechanics Lien
Warning” written as follows:
<html:br/>
</html:p>
<html:br/>
<html:p>“MECHANICS LIEN WARNING:</html:p>
<html:br/>
<html:p>Anyone who helps improve your property, but who is not paid, may record what is called a mechanics lien on your property. A mechanics lien is a claim, like a mortgage or home equity loan, made against your property and recorded with the county recorder.</html:p>
<html:p>Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to improve your property may record mechanics liens and sue you in court to foreclose the lien. If a court finds the lien is valid, you could be forced to pay twice or have a court officer sell your home to pay the lien. Liens can also affect your credit.</html:p>
<html:p>To preserve their right to record a lien, each subcontractor and material supplier must provide you
with a document called a ‘Preliminary Notice.’ This notice is not a lien. The purpose of the notice is to let you know that the person who sends you the notice has the right to record a lien on your property if they are not paid.</html:p>
<html:p>
BE CAREFUL.
<html:span class="EnSpace"/>
The Preliminary Notice can be sent up to 20 days after the subcontractor starts work or the supplier provides material. This can be a big problem if you pay your contractor before you have received the Preliminary Notices.
</html:p>
<html:p>You will not get Preliminary Notices from your prime contractor or from laborers who work on your project. The law assumes that you already know they are improving your property.</html:p>
<html:p>
PROTECT YOURSELF FROM LIENS.
<html:span class="EnSpace"/>
You can protect yourself from liens by getting a list from your contractor of all the subcontractors and material suppliers that work on your project. Find out from your
contractor when these subcontractors started work and when these suppliers delivered goods or materials. Then wait 20 days, paying attention to the Preliminary Notices you receive.
</html:p>
<html:p>
PAY WITH JOINT CHECKS.
<html:span class="EnSpace"/>
One way to protect yourself is to pay with a joint check. When your contractor tells you it is time to pay for the work of a subcontractor or supplier who has provided you with a Preliminary Notice, write a joint check payable to both the contractor and the subcontractor or material supplier.
</html:p>
<html:p>For other ways to prevent liens, visit CSLB’s internet website at www.cslb.ca.gov or call CSLB at 800-321-CSLB (2752).</html:p>
<html:p>REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON YOUR HOME. This can mean that you may have to pay twice, or face the forced sale of your home to pay what you owe.”</html:p>
<html:br/>
<html:p>
(5)
<html:span class="EnSpace"/>
The following notice shall be provided in at least 12-point typeface:
</html:p>
<html:br/>
<html:p>“Information about the Contractors State License Board (CSLB): CSLB is the state consumer protection agency that licenses and regulates construction contractors.</html:p>
<html:p>Contact CSLB for information about the licensed contractor you are considering, including information about disclosable complaints, disciplinary actions, and civil judgments that are reported to CSLB.</html:p>
<html:p>Use only licensed contractors. If you file a complaint against a licensed contractor within the legal deadline (usually four years), CSLB has authority to investigate the complaint. If you use an unlicensed contractor, CSLB may not be able to help you resolve your complaint. Your only remedy may be in civil court, and you may be liable for damages
arising out of any injuries to the unlicensed contractor or the unlicensed contractor’s employees.</html:p>
<html:p>For more information:</html:p>
<html:p>Visit CSLB’s internet website at www.cslb.ca.gov</html:p>
<html:p>Call CSLB at 800-321-CSLB (2752)</html:p>
<html:p>Write CSLB at P.O. Box 26000, Sacramento, CA 95826.”</html:p>
<html:br/>
<html:p>
(6)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The notice set forth in subparagraph (B) and entitled “Three-Day Right to Cancel,” or entitled “Five-Day Right to Cancel” for contracts with a senior citizen, shall be provided to the buyer unless the contract is:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Negotiated at the contractor’s place of business.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Subject to the “Seven-Day Right to Cancel,” as set
forth in paragraph (7).
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Subject to licensure under the Alarm Company Act (Chapter 11.6 (commencing with Section 7590)), provided the alarm company licensee complies with Sections 1689.5, 1689.6, and 1689.7 of the Civil Code, as applicable.
</html:p>
<html:br/>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
“Three-Day Right to Cancel
</html:p>
<html:br/>
<html:p>You, the buyer, have the right to cancel this contract within three business days. You may cancel by emailing, mailing, faxing, or delivering a written notice to the contractor at the contractor’s place of business by midnight of the third business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of the contract and this notice.</html:p>
<html:p>If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. For your part, you must make available to the contractor at your residence, in substantially as good condition as you received them, goods delivered to you under this contract or sale. Or, you may, if you wish, comply with the contractor’s instructions on how to return the goods at the contractor’s expense and risk. If you do make the goods available to the contractor and the contractor does not pick them up within 20 days of the date of your notice of cancellation, you may keep them without any further obligation. If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:br/>
<html:p>
(ii)
<html:span class="EnSpace"/>
References to
“three” and “third” in the notice set forth in clause (i) shall be changed to “five” and “fifth,” respectively, for a buyer who is a senior citizen.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The notice required by this paragraph shall comply with all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The text of the notice is at least 12-point boldface type.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The notice is in immediate proximity to a space reserved for the owner’s signature.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The owner acknowledges receipt of the notice by signing and dating the notice form in the signature space.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The notice is written in the same language, e.g., Spanish, as that principally used in any oral sales presentation.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
The notice
may be attached to the contract if the contract includes, in at least 12-point boldface type, a checkbox with one of the following statements, as applicable:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
For a contract with a senior citizen: “The law requires that the contractor give you a notice explaining your right to cancel. Initial the checkbox if the contractor has given you a ‛Notice of the Five-Day Right to Cancel.’
<html:span class="ThinSpace"/>
”
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
For all other contracts: “The law requires that the contractor give you a notice explaining your right to cancel. Initial the checkbox if the contractor has given you a ‛Notice of the Three-Day Right to Cancel.’”
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
(I)
<html:span class="EnSpace"/>
The notice shall be accompanied by a completed form in duplicate, captioned “Notice of Cancellation,” which also shall be attached to the agreement or offer to
purchase and be easily detachable, and which shall contain the following statement written in the same language, e.g., Spanish, as used in the contract:
</html:p>
<html:table id="id_12ECBD83-02D8-41CF-8080-2F7CCE71120D">
<html:colgroup>
<html:col width="207.0"/>
<html:col width="207.0"/>
</html:colgroup>
<html:tbody>
<html:tr>
<html:td colspan="2">
<html:p class="Center10Point" style="font-size:10pt; text-align:center; text-indent:0pt;">
“Notice of Cancellation”
<html:br/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">/enter date of transaction/</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">(Date)</html:p>
</html:th>
</html:tr>
</html:tbody>
</html:table>
<html:p>“You may
cancel this transaction, without any penalty or obligation, within three business days from the above date.</html:p>
<html:p>If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.</html:p>
<html:p>If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.</html:p>
<html:p>If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may
retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:table id="id_456C9110-1535-43A8-8444-E22FC369A70C">
<html:tbody>
<html:tr>
<html:td>
<html:p>To cancel this transaction, email, mail, or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
to
<html:span class="UnderlinedLeaders"/>
,
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td align="center">
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
/name of
seller/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
at
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
/address of seller’s place of business/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
not later than midnight of
<html:span class="UnderlinedLeaders"/>
.
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
I hereby cancel this transaction.
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
(Buyer’s signature)
</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>
(II)
<html:span class="EnSpace"/>
The reference to
“three” in the statement set forth in subclause (I) shall be changed to “five” for a buyer who is a senior citizen.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The following notice entitled “Seven-Day Right to Cancel” shall be provided to the buyer for any contract that is written for the repair or restoration of residential premises damaged by any sudden or catastrophic event for which a state of emergency has been declared by the President of the United States or the Governor, or for which a local emergency has been declared by the executive officer or governing body of any city, county, or city and county:
</html:p>
<html:br/>
<html:p>“Seven-Day Right to Cancel</html:p>
<html:br/>
<html:p>You, the buyer, have the right to cancel this
contract within seven business days. You may cancel by emailing, mailing, faxing, or delivering a written notice to the contractor at the contractor’s place of business by midnight of the seventh business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of the contract and this notice.</html:p>
<html:p>If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. For your part, you must make available to the contractor at your residence, in substantially as good condition as you received them, goods delivered to you under this contract or sale. Or, you may, if you wish, comply with the contractor’s instructions on how to return the goods at the contractor’s expense and risk. If you do make the goods available to the contractor and the contractor does not pick them up within 20 days of the date of your notice
of cancellation, you may keep them without any further obligation. If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:br/>
<html:p>
(B)
<html:span class="EnSpace"/>
The “Seven-Day Right to Cancel” notice required by this subdivision shall comply with all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The text of the notice is at least 12-point boldface type.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The notice is in immediate proximity to a space reserved for the owner’s signature.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The owner acknowledges receipt of the notice by signing and dating the notice form in the signature space.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The notice is written in the same language, e.g., Spanish, as that principally used in any oral sales presentation.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
The notice may be attached to the contract if the contract includes, in at least 12-point boldface type, a checkbox with the following statement: “The law requires that the contractor give you a notice explaining your right to cancel. Initial the checkbox if the contractor has given you a ‛Notice of the Seven-Day Right to Cancel.’
<html:span class="ThinSpace"/>
”
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
The notice shall be accompanied by a completed form in duplicate, captioned “Notice of Cancellation,” which shall also be attached to the agreement or offer to purchase and be easily detachable, and which shall contain the following statement written in the same language, e.g., Spanish, as used in the contract:
</html:p>
<html:table id="id_F6360116-0474-460A-B122-9686A4D6845B">
<html:colgroup>
<html:col width="207.0"/>
<html:col width="207.0"/>
</html:colgroup>
<html:tbody>
<html:tr>
<html:td colspan="2">
<html:p class="Center10Point" style="font-size:10pt; text-align:center; text-indent:0pt;">
“Notice of Cancellation”
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:br/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">/enter date of transaction/</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">(Date)</html:p>
</html:th>
</html:tr>
</html:tbody>
</html:table>
<html:p>“You may cancel this transaction, without any penalty or obligation, within seven business days from the above date.</html:p>
<html:p>If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.</html:p>
<html:p>If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.</html:p>
<html:p>If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the
seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:table id="id_EFC0A062-D541-47B8-9642-1CA3255220D0">
<html:tbody>
<html:tr>
<html:td>
<html:p>To cancel this transaction, email, mail, or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
to
<html:span class="UnderlinedLeaders"/>
,
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
<html:span class="EmSpace"/>
/name of seller/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
at
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
/address of seller’s place of business/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
not later than midnight of
<html:span class="UnderlinedLeaders"/>
.
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
I hereby cancel this transaction.
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
<html:span class="EmSpace"/>
(Buyer’s signature)
</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>
(f)
<html:span class="EnSpace"/>
The five-day right to cancel added by the act that amended paragraph
(6) of subdivision (e) shall apply to contracts entered into on or after January 1, 2021.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_DAC8331A-C290-4B67-BEA4-A7C599D1D38C">
<ns0:Num>SEC. 1.5.</ns0:Num>
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Section 7159 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_2C5E1D05-B396-461D-92CC-7188CBA7C150">
<ns0:Num>7159.</ns0:Num>
<ns0:LawSectionVersion id="id_F23FF7DA-7E12-47B1-8B9E-328BF7BE5A8A">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
This section identifies the projects for which a home improvement contract is required, outlines the contract requirements, and lists the items that shall be included in the contract, or may be provided as an attachment.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
This section does not apply to service and repair contracts that are subject to Section 7159.10, if the contract for the applicable services complies with Sections 7159.10 to 7159.14, inclusive.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
This section does not apply to the sale, installation, and servicing of a fire alarm sold in conjunction with an alarm system, as defined in Section 7590.1, if all costs attributable to making the fire alarm system operable, including sale and installation
costs, do not exceed five hundred dollars ($500), and the licensee complies with the requirements set forth in Section 7159.9.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
This section does not apply to any costs associated with monitoring a burglar or fire alarm system.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Failure by the licensee, their agent or salesperson, or by a person subject to be licensed under this chapter, to provide the specified information, notices, and disclosures in the contract, or to otherwise fail to comply with any provision of this section, is cause for discipline.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For purposes of administrative discipline under this chapter, the prime or direct contractor is responsible for completion of the project in accordance with the home improvement contract, plans, and specifications. This prime or direct contractor responsibility shall not preclude administrative discipline against any subcontractor or home improvement salesperson on a home improvement contract for violation of this chapter.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
If the applicable “Notice of Cancellation” is not included in or attached to the contract as required by this section, the buyer may file a complaint with the Contractors State License Board.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, “home improvement contract” means an
agreement, whether oral or written, or contained in one or more documents, between a contractor and an owner or between a contractor and a tenant, regardless of the number of residence or dwelling units contained in the building in which the tenant resides, if the work is to be performed in, to, or upon the residence or dwelling unit of the tenant, for the performance of a home improvement, as defined in Section 7151, and includes all labor, services, and materials to be furnished and performed thereunder, if the aggregate contract price specified in one or more improvement contracts, including all labor, services, and materials to be furnished by the contractor, exceeds five hundred dollars ($500). “Home improvement contract” also means an agreement, whether oral or written, or contained in one or more documents, between a salesperson, whether or not they are a home improvement salesperson, and an owner or a tenant, regardless of the number of residence or dwelling units contained in the building in which
the tenant resides, which provides for the sale, installation, or furnishing of home improvement goods or services.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In addition to the specific requirements listed under this section, every home improvement contract and any person subject to licensure under this chapter or their agent or salesperson shall comply with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The writing shall be legible.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any printed form shall be readable. Unless a larger typeface is specified in this article, text in any printed form shall be in at least 10-point typeface and the headings shall be in at least 10-point boldface type.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Before any work is started, the contractor shall give the buyer a copy of the contract
that is signed and dated by both the contractor and the buyer. The buyer’s receipt of the copy of the contract initiates the buyer’s rights to cancel the contract pursuant to Sections 1689.5 to 1689.14, inclusive, of the Civil Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The contract shall contain on the first page, in a typeface no smaller than that generally used in the body of the document, both of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The date the buyer signed the contract.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The
name, address, and email address of the contractor to whom the applicable “Notice of Cancellation” is to be sent, immediately preceded by a statement advising the buyer that the “Notice of Cancellation” may be sent to the contractor at the address or email address noted on the contract.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The telephone number of the
contractor, or the contractor’s representative, to assist the buyer with locating and filling out the “Notice of Cancellation.”
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The contract shall include a statement that, upon satisfactory payment being made for any portion of the work performed, the contractor, prior to any further payment being made, shall furnish to the person contracting for the home improvement or swimming pool work a full and unconditional release from any potential lien claimant claim or mechanics lien authorized pursuant to Sections 8400 and 8404 of the Civil Code for that portion of the work for which payment has been made.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A change-order form for changes or extra work shall be incorporated into the contract and shall become part of the contract only if it is in writing and signed by the parties prior to the commencement of any work covered by a change order.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The contract shall contain, in close proximity to the signatures of the owner and contractor, a notice stating that the owner or tenant has the right to require the contractor to have a performance and payment bond.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The contract shall contain a statement regarding whether or not a subcontractor will be used on the project, including a portion to be checked in response, as follows:
</html:p>
<html:p>[__] Yes</html:p>
<html:p>[__] No</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If checked “Yes,” indicating that a subcontractor will be used on the project, the contract shall contain a disclaimer that states the following:
</html:p>
<html:p>“One or more subcontractors will
be used on this project, and the contractor is aware that a list of subcontractors is required to be provided, upon request, along with the names, contact information, license number, and classification of those subcontractors.”</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
If there is a change order during the project, the same disclaimer set forth in subparagraph (B) shall be on each change order.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
If the contract provides for a contractor to furnish joint control, the contractor shall not have any financial or other interest in the joint control.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
The provisions of this section are not exclusive and do not relieve the contractor from compliance with any other applicable provision of law.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A home improvement contract and any changes to the contract shall be in writing and signed by the parties to the contract prior to the commencement of work covered by the contract or an applicable change order and, except as provided in paragraph (8) of subdivision (a) of Section 7159.5, shall include or comply with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The name, business address, and license number of the contractor.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If applicable, the name and registration number of the home improvement salesperson that
solicited or negotiated the contract.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The following heading on the contract form that identifies the type of contract in at least 10-point boldface type: “Home Improvement.”
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The following statement in at least 12-point boldface type: “You are entitled to a completely filled in copy of this agreement, signed by both you and the contractor, before any work may be started.”
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The heading: “Contract Price,” followed by the amount of the contract in dollars and cents.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
If a finance charge will be charged, the heading: “Finance Charge,” followed by the amount in dollars and cents. The finance charge is to be set out separately from the contract amount.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
The heading: “Description
of the Project and Description of the Significant Materials to be Used and Equipment to be Installed,” followed by a description of the project and a description of the significant materials to be used and equipment to be installed. For swimming pools, the project description required under this paragraph also shall include a plan and scale drawing showing the shape, size, dimensions, and the construction and equipment specifications.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
If a downpayment will be charged, the details of the downpayment shall be expressed in substantially the following form, and shall include the text of the notice as specified in subparagraph (C):
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The heading: “Downpayment.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A space where the actual downpayment appears.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The following statement in at least
12-point boldface type:
</html:p>
<html:br/>
<html:p>“THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE CONTRACT PRICE, WHICHEVER IS LESS.”</html:p>
<html:br/>
<html:p>
(9)
<html:span class="EnSpace"/>
If payments, other than the downpayment, are to be made before the project is completed, the details of these payments, known as progress payments, shall be expressed in substantially the following form, and shall include the text of the statement as specified in subparagraph (C):
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A schedule of progress payments shall be preceded by the heading: “Schedule of Progress Payments.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Each progress payment shall be stated in dollars and cents and specifically reference the amount of work or services to be performed and materials and equipment to be supplied.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The section of the contract reserved for the progress payments shall include the following statement in at least 12-point boldface type:
</html:p>
<html:br/>
<html:p>“The schedule of progress payments must specifically describe each phase of work, including the type and amount of work or services scheduled to be supplied in each phase, along with the amount of each proposed progress payment. IT IS AGAINST THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWNPAYMENT.”</html:p>
<html:br/>
<html:p>
(10)
<html:span class="EnSpace"/>
The contract shall address the commencement of work to be performed in substantially the following form:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A statement that describes what constitutes
substantial commencement of work under the contract.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The heading: “Approximate Start Date.”
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The approximate date on which work will be commenced.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
The estimated completion date of the work shall be referenced in the contract in substantially the following form:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The heading: “Approximate Completion Date.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The approximate date of completion.
</html:p>
<html:p>
(12)
<html:span class="EnSpace"/>
If applicable, the heading: “List of Documents to be Incorporated into the Contract,” followed by the list of documents incorporated into the contract.
</html:p>
<html:p>
(13)
<html:span class="EnSpace"/>
The heading: “Note About Extra Work and
Change Orders,” followed by the following statement:
</html:p>
<html:br/>
<html:p>“Extra Work and Change Orders become part of the contract once the order is prepared in writing and signed by the parties prior to the commencement of work covered by the new change order. The order must describe the scope of the extra work or change, the cost to be added or subtracted from the contract, and the effect the order will have on the schedule of progress payments.”</html:p>
<html:br/>
<html:p>
(e)
<html:span class="EnSpace"/>
Except as provided in paragraph (8) of subdivision (a) of Section 7159.5, all of the following notices shall be provided to the owner as part of the contract form as specified or, if otherwise authorized under this subdivision, may be provided as an attachment to the contract:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A notice concerning commercial general
liability insurance. This notice may be provided as an attachment to the contract if the contract includes the following statement: “A notice concerning commercial general liability insurance is attached to this contract.” The notice shall include the heading “Commercial General Liability Insurance (CGL),” followed by whichever of the following statements is both relevant and correct:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) does not carry commercial general liability insurance.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) carries commercial general liability insurance written by (the insurance company). You may call (the insurance company) at __________ to check the contractor’s insurance coverage.”
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) is self-insured.”
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
“(The name on the license or ‘This contractor’) is a limited liability company that carries liability insurance or maintains other security as required by law. You may call (the insurance company or trust company or bank) at ____ to check on the contractor’s insurance coverage or security.”
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A notice concerning workers’ compensation insurance. This notice may be provided as an attachment to the contract if the contract includes the statement: “A notice concerning workers’ compensation insurance is attached to this contract.” The notice shall include the heading “Workers’ Compensation Insurance” followed by whichever of the following statements is correct:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) has no employees and is exempt from workers’ compensation requirements.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
“(The name on the license or ‛This contractor’) carries workers’ compensation insurance for all employees.”
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A notice that provides the buyer with the following information about the performance of extra or change-order work:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A statement that the buyer may not require a contractor to perform extra or change-order work without providing written authorization prior to the commencement of work covered by the new change order.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A statement informing the buyer that extra work or a change order is not enforceable against a buyer unless the change order also identifies all of the following in writing prior to the commencement of work covered by the new change order:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The scope of
work encompassed by the order.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The amount to be added or subtracted from the contract.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The effect the order will make in the progress payments or the completion date.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A statement informing the buyer that the contractor’s failure to comply with the requirements of this paragraph does not preclude the recovery of compensation for work performed based upon legal or equitable remedies designed to prevent unjust enrichment.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A notice with the heading “Mechanics Lien Warning” written as follows:
<html:br/>
</html:p>
<html:br/>
<html:p>“MECHANICS LIEN WARNING:</html:p>
<html:br/>
<html:p>Anyone who helps improve your property, but who is
not paid, may record what is called a mechanics lien on your property. A mechanics lien is a claim, like a mortgage or home equity loan, made against your property and recorded with the county recorder.</html:p>
<html:p>Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to improve your property may record mechanics liens and sue you in court to foreclose the lien. If a court finds the lien is valid, you could be forced to pay twice or have a court officer sell your home to pay the lien. Liens can also affect your credit.</html:p>
<html:p>To preserve their right to record a lien, each subcontractor and material supplier must provide you with a document called a ‘Preliminary Notice.’ This notice is not a lien. The purpose of the notice is to let you know that the person who sends you the notice has the right to record a lien on your property if they are not paid.</html:p>
<html:p>
BE
CAREFUL.
<html:span class="EnSpace"/>
The Preliminary Notice can be sent up to 20 days after the subcontractor starts work or the supplier provides material. This can be a big problem if you pay your contractor before you have received the Preliminary Notices.
</html:p>
<html:p>You will not get Preliminary Notices from your prime contractor or from laborers who work on your project. The law assumes that you already know they are improving your property.</html:p>
<html:p>
PROTECT YOURSELF FROM LIENS.
<html:span class="EnSpace"/>
You can protect yourself from liens by getting a list from your contractor of all the subcontractors and material suppliers that work on your project. Find out from your contractor when these subcontractors started work and when these suppliers delivered goods or materials. Then wait 20 days, paying attention to the Preliminary Notices you receive.
</html:p>
<html:p>
PAY WITH JOINT CHECKS.
<html:span class="EnSpace"/>
One way to
protect yourself is to pay with a joint check. When your contractor tells you it is time to pay for the work of a subcontractor or supplier who has provided you with a Preliminary Notice, write a joint check payable to both the contractor and the subcontractor or material supplier.
</html:p>
<html:p>For other ways to prevent liens, visit CSLB’s internet website at www.cslb.ca.gov or call CSLB at 800-321-CSLB (2752).</html:p>
<html:p>REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON YOUR HOME. This can mean that you may have to pay twice, or face the forced sale of your home to pay what you owe.”</html:p>
<html:br/>
<html:p>
(5)
<html:span class="EnSpace"/>
The following notice shall be provided in at least 12-point typeface:
</html:p>
<html:br/>
<html:p>“Information about the Contractors State License Board (CSLB): CSLB is the state consumer
protection agency that licenses and regulates construction contractors.</html:p>
<html:p>Contact CSLB for information about the licensed contractor you are considering, including information about disclosable complaints, disciplinary actions, and civil judgments that are reported to CSLB.</html:p>
<html:p>Use only licensed contractors. If you file a complaint against a licensed contractor within the legal deadline (usually four years), CSLB has authority to investigate the complaint. If you use an unlicensed contractor, CSLB may not be able to help you resolve your complaint. Your only remedy may be in civil court, and you may be liable for damages arising out of any injuries to the unlicensed contractor or the unlicensed contractor’s employees.</html:p>
<html:p>For more information:</html:p>
<html:p>Visit CSLB’s internet website at www.cslb.ca.gov</html:p>
<html:p>Call CSLB at
800-321-CSLB (2752)</html:p>
<html:p>Write CSLB at P.O. Box 26000, Sacramento, CA 95826.”</html:p>
<html:br/>
<html:p>
(6)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The notice set forth in subparagraph (B) and entitled “Three-Day Right to Cancel,” or entitled “Five-Day Right to Cancel” for contracts with a senior citizen, shall be provided to the buyer unless the contract is:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Negotiated at the contractor’s place of business.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Subject to the “Seven-Day Right to Cancel,” as set forth in paragraph (7).
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Subject to licensure under the Alarm Company Act (Chapter 11.6 (commencing with Section 7590)), provided the alarm company licensee complies with Sections 1689.5, 1689.6, and 1689.7 of the Civil Code, as
applicable.
</html:p>
<html:br/>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
“Three-Day Right to Cancel
</html:p>
<html:p>You, the buyer, have the right to cancel this contract within three business days. You may cancel by emailing, mailing, faxing, or delivering a written notice to the contractor at the contractor’s place of business by midnight of the third business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of the contract and this notice.</html:p>
<html:p>If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. For your part, you must make available to the contractor at your residence, in substantially as good condition as you received them, goods delivered to you under this contract or sale. Or,
you may, if you wish, comply with the contractor’s instructions on how to return the goods at the contractor’s expense and risk. If you do make the goods available to the contractor and the contractor does not pick them up within 20 days of the date of your notice of cancellation, you may keep them without any further obligation. If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:br/>
<html:p>
(ii)
<html:span class="EnSpace"/>
References to “three” and “third” in the notice set forth in clause (i) shall be changed to “five” and “fifth,” respectively, for a buyer who is a senior citizen.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The notice required by this paragraph shall comply with all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The text of the notice is at least 12-point boldface type.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The notice is in immediate proximity to a space reserved for the owner’s signature.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The owner acknowledges receipt of the notice by signing and dating the notice form in the signature space.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The notice is written in the same language, e.g., Spanish, as that principally used in any oral sales presentation.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
The notice may be attached to the contract if the contract includes, in at least 12-point boldface type, a checkbox with one of the following statements, as applicable:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
For a contract with a senior citizen: “The law requires that the contractor give you a notice explaining your right to
cancel. Initial the checkbox if the contractor has given you a ‛Notice of the Five-Day Right to Cancel.’
<html:span class="ThinSpace"/>
”
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
For all other contracts: “The law requires that the contractor give you a notice explaining your right to cancel. Initial the checkbox if the contractor has given you a ‛Notice of the Three-Day Right to Cancel.’”
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
(I)
<html:span class="EnSpace"/>
The notice shall be accompanied by a completed form in duplicate, captioned “Notice of Cancellation,” which also shall be attached to the agreement or offer to purchase and be easily detachable, and which shall contain the following statement written in the same language, e.g., Spanish, as used in the contract:
</html:p>
<html:table id="id_DFAED168-8ACD-4144-906C-3F5555F2F351">
<html:colgroup>
<html:col width="207.0"/>
<html:col width="207.0"/>
</html:colgroup>
<html:tbody>
<html:tr>
<html:td colspan="2">
<html:p class="Center10Point" style="font-size:10pt; text-align:center; text-indent:0pt;">
“Notice of Cancellation”
<html:br/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">/enter date of transaction/</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">(Date)</html:p>
</html:th>
</html:tr>
</html:tbody>
</html:table>
<html:p>“You may cancel this transaction, without any penalty or obligation, within three business days from the above date.</html:p>
<html:p>If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following
receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.</html:p>
<html:p>If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.</html:p>
<html:p>If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:table id="id_7BA5CA87-980D-4557-9624-CEE184F47199">
<html:tbody>
<html:tr>
<html:td>
<html:p>To cancel this transaction, email, mail, or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
to
<html:span class="UnderlinedLeaders"/>
,
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td align="center">
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
/name of seller/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
at
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
/address of seller’s place of business/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
not later than midnight of
<html:span class="UnderlinedLeaders"/>
.
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
I hereby cancel this transaction.
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
(Buyer’s signature)
</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>
(II)
<html:span class="EnSpace"/>
The reference to “three” in the statement set
forth in subclause (I) shall be changed to “five” for a buyer who is a senior citizen.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The following notice entitled “Seven-Day Right to Cancel” shall be provided to the buyer for any contract that is written for the repair or restoration of residential premises damaged by any sudden or catastrophic event for which a state of emergency has been declared by the President of the United States or the Governor, or for which a local emergency has been declared by the executive officer or governing body of any city, county, or city and county:
</html:p>
<html:br/>
<html:p>“Seven-Day Right to Cancel</html:p>
<html:p>You, the buyer, have the right to cancel this contract within seven business days. You may cancel by emailing, mailing, faxing, or delivering a written notice to the contractor at the contractor’s place of business by midnight of
the seventh business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of the contract and this notice.</html:p>
<html:p>If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. For your part, you must make available to the contractor at your residence, in substantially as good condition as you received them, goods delivered to you under this contract or sale. Or, you may, if you wish, comply with the contractor’s instructions on how to return the goods at the contractor’s expense and risk. If you do make the goods available to the contractor and the contractor does not pick them up within 20 days of the date of your notice of cancellation, you may keep them without any further obligation. If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and
fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:br/>
<html:p>
(B)
<html:span class="EnSpace"/>
The “Seven-Day Right to Cancel” notice required by this subdivision shall comply with all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The text of the notice is at least 12-point boldface type.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The notice is in immediate proximity to a space reserved for the owner’s signature.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The owner acknowledges receipt of the notice by signing and dating the notice form in the signature space.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The notice is written in the same language, e.g., Spanish, as that principally used in any oral sales presentation.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
The notice may be attached to the contract if the contract includes, in at least 12-point boldface type, a checkbox with the following statement: “The law requires that the contractor give you a notice explaining your right to cancel. Initial the checkbox if the contractor has given you a ‛Notice of the Seven-Day Right to Cancel.’
<html:span class="ThinSpace"/>
”
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
The notice shall be accompanied by a completed form in duplicate, captioned “Notice of Cancellation,” which shall also be attached to the agreement or offer to purchase and be easily detachable, and which shall contain the following statement written in the same language, e.g., Spanish, as used in the contract:
</html:p>
<html:table id="id_CB704307-3F26-4882-875A-E95A48258EC6">
<html:colgroup>
<html:col width="207.0"/>
<html:col width="207.0"/>
</html:colgroup>
<html:tbody>
<html:tr>
<html:td colspan="2">
<html:p class="Center10Point" style="font-size:10pt; text-align:center; text-indent:0pt;">
“Notice of Cancellation”
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:br/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">/enter date of transaction/</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:th>
</html:tr>
<html:tr>
<html:th valign="bottom"/>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">(Date)</html:p>
</html:th>
</html:tr>
</html:tbody>
</html:table>
<html:p>“You may cancel this transaction, without any penalty or obligation, within seven business days from the above date.</html:p>
<html:p>If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within
10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.</html:p>
<html:p>If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.</html:p>
<html:p>If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:table id="id_33A59A82-C6BA-4883-94BF-85725E9CEAC8">
<html:tbody>
<html:tr>
<html:td>
<html:p>To cancel this transaction, email, mail, or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
to
<html:span class="UnderlinedLeaders"/>
,
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
<html:span class="EmSpace"/>
/name of seller/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
at
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
/address of seller’s place of business/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
not later than midnight of
<html:span class="UnderlinedLeaders"/>
.
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
I hereby cancel this transaction.
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
(Date)
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace">
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:span>
<html:span class="EmSpace"/>
(Buyer’s signature)
</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>
(f)
<html:span class="EnSpace"/>
The five-day right to
cancel added by the act that amended paragraph (6) of subdivision (e) shall apply to contracts entered into on or after January 1, 2021.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_82E01024-58C8-4907-AEDE-5DC6470B40B8">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:BPC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'1.4.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'17511.5.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 17511.5 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_6E3F1BF3-48D8-4176-8600-799EB9EEF369">
<ns0:Num>17511.5.</ns0:Num>
<ns0:LawSectionVersion id="id_B1A8ADFB-F092-4635-A659-59F2276D03C6">
<ns0:Content>
<html:p>In addition to complying with the requirements of Section 17500.3, as applicable, a telephonic seller, shall, at the time the solicitation is made and prior to consummation of a sales transaction, provide all of the following information to a prospective purchaser:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
If the telephonic seller represents or implies that a prospective purchaser will receive, without charge therefor, certain specific items or one item from among designated items, whether the items are denominated as gifts, premiums, bonuses, prizes, or otherwise, the seller shall provide the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The information required to be filed by subparagraphs (A) and (B) of paragraph (4) of, and paragraph (5) of, subdivision (
<html:i>l</html:i>
) of Section 17511.4.
In addition, each time the telephonic seller makes reference to an item or items, the telephonic seller shall state that no purchase is necessary, and that the purchase of goods will have no greater chance of receiving the more valuable item or items than the person who does not purchase. The seller shall state, in a manner enabling a consumer to copy the information, the method, including the telephonic seller’s address, for obtaining without purchase the item or items or for a chance to obtain the item or items. The provisions of Section 17537.2 of the Business and Professions Code shall apply to all offers.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The complete street address of the location from which the salesperson is calling the prospective purchaser and, if different, the complete street address of the telephonic seller’s principal location.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The total number of individuals who have actually received from
the telephonic seller, during the preceding 12 months (or if the seller has not been in business that long, during the period the telephonic seller has been in business), the item having the greatest value and the item with the smallest odds of being received.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
If the telephonic seller is offering to sell any metal, stone, or mineral, the seller shall provide the following information:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The complete street address of the location from which the salesperson is calling the prospective purchaser and, if different, the complete street address of the telephonic seller’s principal location.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
When required to be filed pursuant to Section 17511.4, the information specified in subparagraphs (A) and (B) of paragraph (2) of, and paragraph (5) of, subdivision (m) of Section 17511.4.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If the telephonic seller is offering to sell an interest in oil, gas, or mineral fields, wells, or exploration sites the seller shall provide the following information:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The complete street address of the location from which the salesperson is calling the prospective purchaser and, if different, the complete street address of the telephonic seller’s principal location.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The information required to be filed by paragraphs (1), (2), and (4) of, and subparagraph (A) of paragraph (3) of, subdivision (n) of Section 17511.4.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
If the telephonic seller represents that office equipment or supplies being offered are offered at prices which are below those usually charged for these items, the seller shall provide the following information:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The complete street address of the location from which the salesperson is calling the prospective purchaser and, if different, the complete street address of the telephonic seller’s principal location.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The name of the manufacturer of each of the items the telephonic seller has represented for sale and in which the prospective purchaser expresses interest.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
If the solicitation is a “home solicitation contract or offer” within the meaning of Section 1689.5 of the Civil Code, the seller shall comply with the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
At the time the solicitation is made, the telephonic seller shall inform the buyer orally of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The buyer has the right to cancel the contract or
offer until midnight of the third business day after the day on which the buyer receives the product or products ordered or the notice of confirmation of services ordered. This right of cancellation begins to run from the date of the buyer’s receipt of the product or products ordered or, in the case of services ordered, from the buyer’s receipt of the notice of confirmation of services ordered.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A written notice of cancellation will be sent with the product or products ordered or, in the case of services, the notice of cancellation shall accompany a notice of confirmation that shall be sent to the purchaser immediately following the telephonic agreement to purchase those services.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The telephonic seller shall provide the buyer with a written notice of cancellation that shall accompany and be attached to any product or products sent to the purchaser in response to a telephone
solicitation or, in the case of services, shall accompany a notice of confirmation of the agreement to purchase services. The notice of cancellation shall be in duplicate, captioned “Notice of Buyer’s Right of Cancellation,” which shall be separate from or easily detachable from any agreement or offer to purchase which accompanies the product or products or notice of confirmation, and shall contain, in type of at least 10-point, the following cancellation statement, and no other information or statement, written in the same language used in the telephone solicitation:
</html:p>
<html:p>
<html:h1>“NOTICE OF BUYER’S RIGHT OF CANCELLATION”</html:h1>
</html:p>
<html:br/>
<html:p>You may cancel this transaction, without any penalty or obligation, within three business days following your receipt of this notice of cancellation and the receipt of any products, or in the case of services, within three business days following receipt of the
attached notice of confirmation.</html:p>
<html:p>If you cancel, any payments made by you or authorized by you, pursuant to any telephonic solicitation and purchase agreement shall be returned to you within 10 days following receipt by the seller of your cancellation notice.</html:p>
<html:p>If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract, agreement, or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.</html:p>
<html:p>If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return
the goods to the seller and fail to do so, then you remain liable for the performance of all obligations under the contract.</html:p>
<html:p>
To cancel this transaction, email, mail, or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram to
<html:span class="EmSpace"/>
__________
<html:span class="EmSpace"/>
(name of seller), at
<html:span class="EmSpace"/>
________
<html:span class="EmSpace"/>
(address of seller’s place of business) not later than midnight of the third business day after receipt of the products and this notice of cancellation.
<html:br/>
</html:p>
<html:p>I HEREBY CANCEL THIS TRANSACTION.</html:p>
<html:table class="convertedTable" id="id_4DDAFC13-7904-4D41-B75F-76A24EF59EF1">
<html:colgroup>
<html:col width="186.0"/>
<html:col width="226.0"/>
</html:colgroup>
<html:tbody>
<html:tr>
<html:td valign="bottom">
<html:p class="Center10Point"/>
</html:td>
<html:td valign="bottom">
<html:p class="Left10Point">
<ns0:LabelledField>
<html:span class="EmSpace"/>
DATE
<html:span class="SpacedLeaders"/>
</ns0:LabelledField>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point"/>
</html:td>
<html:td>
<html:p class="Left10Point">
<ns0:LabelledField>
<html:span class="EmSpace"/>
BUYER’S SIGNATURE
<html:span class="SpacedLeaders"/>
</ns0:LabelledField>
</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_C3C6C1E6-837C-42A9-B6FE-B22B6F0D85B0">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:CIV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1689.6.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 1689.6 of the
<ns0:DocName>Civil Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_1288C2B8-0715-477F-BC40-B9DBC6940AD5">
<ns0:Num>1689.6.</ns0:Num>
<ns0:LawSectionVersion id="id_1AC4C55C-03AD-4436-8983-75B3E04BE671">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Except for a contract written pursuant to Section 7151.2 or 7159.10 of the Business and Professions Code, in addition to any other right to revoke an offer, the buyer has the right to cancel a home solicitation contract or offer until midnight of the third business day, or until midnight of the fifth business day if the buyer is a senior citizen, after the day on which the buyer signs an agreement or offer to purchase which complies with Section 1689.7.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In addition to any other right to revoke an offer, the buyer has the right to cancel a home solicitation contract written pursuant to Section 7151.2 of the Business and Professions Code until midnight of the third business day, or until midnight of the fifth business day if the
buyer is a senior citizen, after the buyer receives a signed and dated copy of the contract or offer to purchase that complies with Section 1689.7 of this code.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
In addition to any other right to revoke an offer, the buyer has the right to cancel a home solicitation contract or offer to purchase written pursuant to Section 7159.10 of the Business and Professions Code, until the buyer receives a signed and dated copy of a service and repair contract that complies with the contract requirements specified in Section 7159.10 of the Business and Professions Code and the work commences.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For any contract written pursuant to Section 7159.10 of the Business and Professions Code, or otherwise presented to the buyer as a service and repair contract, unless all of the conforming requirements listed under subdivision (a) of that section are met, the
requirements set forth under Section 7159 of the Business and Professions Code shall be applicable, regardless of the aggregate contract price, including the right to cancel as set forth under this section.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The five-day right to cancel added by the act that amended paragraphs (1) and (2) shall apply to contracts entered into, or offers to purchase conveyed, on or after January 1, 2021.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
In addition to any other right to revoke an offer, any buyer has the right to cancel a home solicitation contract or offer for the purchase of a personal emergency response unit until midnight of the seventh business day after the day on which the buyer signs an agreement or offer to purchase which complies with Section 1689.7. This subdivision shall not apply to a personal emergency response unit installed with, and as part of, a home security alarm system subject to the Alarm Company Act
(Chapter 11.6 (commencing with Section 7590) of Division 3 of the Business and Professions Code) which has two or more stationary protective devices used to enunciate an intrusion or fire and is installed by an alarm company operator operating under a current license issued pursuant to the Alarm Company Act, which shall instead be subject to subdivision (a).
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In addition to any other right to revoke an offer, a buyer has the right to cancel a home solicitation contract or offer for the repair or restoration of residential premises damaged by a disaster that was not void pursuant to Section 1689.14, until midnight of the seventh business day after the buyer signs and dates the contract unless the provisions of Section 1689.15 are applicable.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Cancellation occurs when the buyer gives written notice of cancellation to the seller at the address or email address specified in the
agreement or offer.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Notice of cancellation given by the buyer need not take the particular form as provided with the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the home solicitation contract or offer.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
“Personal emergency response unit,” for purposes of this section, means an in-home radio transmitter device or two-way radio device generally, but not exclusively, worn on a neckchain, wrist strap, or clipped to clothing, and connected to a telephone line through which a monitoring station is alerted of an emergency and emergency assistance is summoned.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_D90403E6-FFD7-495D-A39E-17E8ADD91900">
<ns0:Num>SEC. 4.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:CIV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1689.7.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 1689.7 of the
<ns0:DocName>Civil Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_02705C49-CEBC-41FD-9EF3-985AEAEE52EF">
<ns0:Num>1689.7.</ns0:Num>
<ns0:LawSectionVersion id="id_AA489B81-AA7B-430F-855F-EAD2A9BCB261">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Except for contracts written pursuant to Sections 7151.2 and 7159.10 of the Business and Professions Code, in a home solicitation contract or offer, the buyer’s agreement or offer to purchase shall be written in the same language, e.g., Spanish, as principally used in the oral sales presentation, shall be dated, shall be signed by the buyer, and except as provided in paragraph (2), shall contain in immediate proximity to the space reserved for the buyer’s signature, a conspicuous statement in a size equal to at least 10-point boldface type, as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
For a buyer who is a senior citizen:
<html:span class="EnSpace"/>
“You, the buyer, may cancel this transaction at any time prior to midnight of the fifth business day after the date of this
transaction. See the attached notice of cancellation form for an explanation of this right.”
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For all other buyers:
<html:span class="EnSpace"/>
“You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right.”
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The statement required pursuant to this subdivision for a home solicitation contract or offer for the purchase of a personal emergency response unit, as defined in Section 1689.6, that is not installed with and as part of a home security alarm system subject to the Alarm Company Act (Chapter 11.6 (commencing with Section 7590) of Division 3 of the Business and Professions Code) that has two or more stationary protective devices used to enunciate an intrusion or fire and is installed by an alarm company operator operating
under a current license issued pursuant to the Alarm Company Act, is as follows:
<html:span class="EnSpace"/>
“You, the buyer, may cancel this transaction at any time prior to midnight of the seventh business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right.”
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Except for contracts written pursuant to Sections 7151.2 and 7159.10 of the Business and Professions Code, the statement required pursuant to this subdivision for the repair or restoration of residential premises damaged by a disaster pursuant to subdivision (c) of Section 1689.6 is as follows:
<html:span class="EnSpace"/>
“You, the buyer, may cancel this transaction at any time prior to midnight of the seventh business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right.”
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A home solicitation contract written pursuant to Section 7151.2 of the Business and Professions Code shall be written in the same language, e.g., Spanish, as principally used in the oral sales presentation. The contract, or an attachment to the contract that is subject to Section 7159 of the Business and Professions Code shall include in immediate proximity to the space reserved for the buyer’s signature, the following statement in a size equal to at least 12-point boldface type, which shall be dated and signed by the buyer:
<html:br/>
</html:p>
<html:h1>“Three-Day Right to Cancel</html:h1>
<html:p>You, the buyer, have the right to cancel this contract within three business days. You may cancel by emailing, mailing, faxing, or delivering a written notice to the contractor at the contractor’s place of business by midnight of the third
business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of the contract and this notice.</html:p>
<html:p>
If you cancel, the contractor must return to you anything you paid within 10 days of receiving the notice of cancellation. For your part, you must make available to the contractor at your residence, in substantially as good condition as you received it, any goods delivered to you under this contract or sale. Or, you may, if you wish, comply with the contractor’s instructions on how to return the goods at the contractor’s expense and risk. If you do make the goods available to the contractor and the contractor does not pick them up within 20 days of the date of your notice of cancellation, you may keep them without any further obligation. If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and fail to do
so, then you remain liable for performance of all obligations under the contract.”
<html:br/>
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
References to “three” and “third” in the statement set forth in subparagraph (A) shall be changed to “five” and “fifth,” respectively, for a buyer who is a senior citizen.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The agreement or offer to purchase shall contain on the first page, in a type size no smaller than that generally used in the body of the document, the following: (1) the name, address, and email address of the seller to which the notice is to be sent, (2) the date the buyer signed the agreement or offer to purchase, and (3) the telephone number of the seller, or the seller’s representative, to assist the buyer with locating and filling out the “Notice of Cancellation.”
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Except for contracts written pursuant to Sections
7151.2 and 7159.10 of the Business and Professions Code, or except as provided in subdivision (d), the agreement or offer to purchase shall be accompanied by a completed form in duplicate, captioned “Notice of Cancellation” which shall be attached to the agreement or offer to purchase and be easily detachable, and which shall contain in type of at least 10-point the following statement written in the same language, e.g., Spanish, as used in the contract:
</html:p>
<html:table id="id_A685215C-E098-49FE-B13F-CDEF98F1A2C6">
<html:colgroup>
<html:col width="207.0"/>
<html:col width="207.0"/>
</html:colgroup>
<html:tbody>
<html:tr>
<html:td colspan="2">
<html:p class="Center10Point" style="font-size:10pt; text-align:center; text-indent:0pt;">
“Notice of Cancellation”
<html:br/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;"/>
</html:td>
<html:td valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">/enter date of
transaction/</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;"/>
</html:td>
<html:td valign="bottom">
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;"/>
</html:td>
<html:td valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">(Date)</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>“You may cancel this transaction, without any penalty or obligation, within three business days from the above date.</html:p>
<html:p>If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the
transaction will be canceled.</html:p>
<html:p>If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.</html:p>
<html:p>If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.”</html:p>
<html:table id="id_FCAF83F9-F035-41C2-9DBC-43ADF7B4DB8A">
<html:tbody>
<html:tr>
<html:td colspan="2" width="406">
<html:span class="EnSpace"/>
To
cancel this transaction, email, mail, or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="406">
<html:p class="Left10Point">
to
<ns0:LabelledField>
<html:span class="SpacedLeaders"/>
/name of seller/
<html:span class="SpacedLeaders"/>
</ns0:LabelledField>
,
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="406">
<html:p class="Left10Point">
at
<ns0:LabelledField>
<html:span class="SpacedLeaders"/>
/address of seller’s place of business/
<html:span class="SpacedLeaders"/>
</ns0:LabelledField>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="406">
<html:p class="Left10Point">
not later than midnight of
<ns0:LabelledField>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
(Date)
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</ns0:LabelledField>
.
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="406">
<html:p class="Left10Point">
I hereby cancel this transaction.
<html:span class="EmSpace"/>
<ns0:LabelledField>
<html:span class="SpacedLeaders"/>
(Date)
<html:span class="SpacedLeaders"/>
</ns0:LabelledField>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="2" width="406">
<html:p class="Left10Point">
<html:span class="SpacedLeaders"/>
<ns0:LabelledField>
<html:span class="ThinSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
(Buyer’s signature)
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</ns0:LabelledField>
</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>
(2)
<html:span class="EnSpace"/>
The reference to “three” in the statement set forth in paragraph (1) shall be changed to “five” for a buyer who is a senior citizen.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Any agreement or offer to purchase a personal emergency response unit, as defined in Section 1689.6, which is not installed with and as part of a home security alarm system subject to the Alarm Company Act which has two or
more stationary protective devices used to enunciate an intrusion or fire and is installed by an alarm company operator operating under a current license issued pursuant to the Alarm Company Act, shall be subject to the requirements of subdivision (c), and shall be accompanied by the “Notice of Cancellation” required by subdivision (c), except that the first paragraph of that notice shall be deleted and replaced with the following paragraph:
</html:p>
<html:p>You may cancel this transaction, without any penalty or obligation, within seven business days from the above date.</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A home solicitation contract written pursuant to Section 7151.2 of the Business and Professions Code for the repair or restoration of residential premises damaged by a disaster that is subject to subdivision (c) of Section 1689.6, shall be written in the same language, e.g., Spanish, as principally used in the oral sales presentation. The
contract, or an attachment to the contract that is subject to Section 7159 of the Business and Professions Code shall include, in immediate proximity to the space reserved for the buyer’s signature, the following statement in a size equal to at least 12-point boldface type, which shall be signed and dated by the buyer:
<html:br/>
</html:p>
<html:h1>“Seven-Day Right to Cancel</html:h1>
<html:p>You, the buyer, have the right to cancel this contract within seven business days. You may cancel by emailing, mailing, faxing, or delivering a written notice to the contractor at the contractor’s place of business by midnight of the seventh business day after you received a signed and dated copy of the contract that includes this notice. Include your name, your address, and the date you received the signed copy of the contract and this notice.</html:p>
<html:p>
If you cancel, the contractor must return to you anything you paid within 10 days of
receiving the notice of cancellation. For your part, you must make available to the contractor at your residence, in substantially as good condition as you received it, any goods delivered to you under this contract or sale. Or, you may, if you wish, comply with the contractor’s instructions on how to return the goods at the contractor’s expense and risk. If you do make the goods available to the contractor and the contractor does not pick them up within 20 days of the date of your notice of cancellation, you may keep them without any further obligation. If you fail to make the goods available to the contractor, or if you agree to return the goods to the contractor and fail to do so, then you remain liable for performance of all obligations under the contract.”
<html:br/>
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The seller shall provide the buyer with a copy of the contract or offer to purchase and the attached notice of cancellation, and shall inform the buyer orally of the buyer’s
right to cancel and the requirement that cancellation be in writing, at the time the home solicitation contract or offer is executed.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
Until the seller has complied with this section the buyer may cancel the home solicitation contract or offer.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
“Contract or sale” as used in subdivision (c) means “home solicitation contract or offer” as defined by Section 1689.5.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The five-day right to cancel added by the act that added subparagraph (A) to paragraph (1) and subparagraph (B) to paragraph (4) of subdivision (a), and paragraph (2) to subdivision (c) applies to contracts, or offers to purchase conveyed, entered into, on or after January 1, 2021.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_19D11596-1EFB-461B-B310-9F6A8158B586">
<ns0:Num>SEC. 5.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:CIV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1689.20.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 1689.20 of the
<ns0:DocName>Civil Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_672E2B45-ECF9-43BD-8623-F7B6EC083D27">
<ns0:Num>1689.20.</ns0:Num>
<ns0:LawSectionVersion id="id_76ECD2CF-7CA7-44C1-92C9-DFFF1820B89B">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In addition to any other right to revoke an offer, the buyer has the right to cancel a seminar sales solicitation contract or offer until midnight of the third business day, or until midnight of the fifth business day if the buyer is a senior citizen, after the day on which the buyer signs an agreement or offer to purchase which complies with Section 1689.21.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The five-day right to cancel added by the act that amended paragraph (1) shall apply to contracts entered into, or offers to purchase conveyed, on or after January 1, 2021.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Cancellation occurs when the buyer gives written notice of cancellation to the seller at the address or email address specified in the
agreement or offer.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Notice of cancellation given by the buyer need not take the particular form as provided with the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the seminar sales solicitation contract or offer.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_73BD7060-5818-4151-8DBF-C8C5E801CCF1">
<ns0:Num>SEC. 6.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:CIV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1689.21.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 1689.21 of the
<ns0:DocName>Civil Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_C4B964FB-66B1-4EE3-B412-EC4B196BFDA0">
<ns0:Num>1689.21.</ns0:Num>
<ns0:LawSectionVersion id="id_3A4E79FF-12BF-4389-9726-7AAC7B38B599">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
In a seminar sales solicitation contract or offer, the buyer’s agreement or offer to purchase shall be written in the same language, e.g., Spanish, as principally used in the oral sales presentation, shall be dated, signed by the buyer, and shall contain in immediate proximity to the space reserved for the buyer’s signature, a conspicuous statement in a size equal to at least 10-point bold type, as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
For a buyer who is a senior citizen:
<html:span class="EnSpace"/>
“You, the buyer, may cancel this transaction at any time prior to midnight of the fifth business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right.”
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For all
other buyers:
<html:span class="EnSpace"/>
“You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right.”
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The agreement or offer to purchase shall contain on the first page, in a type size no smaller than that generally used in the body of the document, each of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The name, address, and email address of the seller to which the notice is to be sent.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The date the buyer signed the agreement or offer to purchase.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The telephone number of the seller, or the seller’s representative, to assist the buyer with locating and filling out the “Notice of Cancellation.”
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The agreement or offer to purchase shall be accompanied by a completed form in duplicate, captioned “Notice of Cancellation,” which shall be attached to the agreement or offer to purchase and be easily detachable, and which shall contain in type of at least 10-point, the following statement written in the same language, e.g., Spanish, as used in the contract:
<html:br/>
<html:br/>
</html:p>
<html:table align="center" class="SGN" id="id_AB1D4503-0E2A-432B-964D-6D1F9659913E">
<html:colgroup>
<html:col width="92pt"/>
</html:colgroup>
<html:tbody>
<html:tr>
<html:td class="Center10Point" colspan="2" width="459">
<html:p class="Center10Point">“Notice of Cancellation”</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td class="Center10Point" colspan="2" width="459"/>
</html:tr>
<html:tr>
<html:td class="Justify9Point" colspan="2" width="459">
<html:p class="Left10Point">
/enter date of transaction/
<html:span class="SpacedLeaders"/>
</html:p>
<html:p class="Left10Point">
<ns0:LabelledField>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
(Date)
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</ns0:LabelledField>
<html:span class="SpacedLeaders"/>
</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>You may cancel this transaction, without any penalty or obligation, within three business days from the above date.</html:p>
<html:p>If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled.</html:p>
<html:p>If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you
may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.</html:p>
<html:p>If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.</html:p>
<html:p>To cancel this transaction, email, mail, or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram to</html:p>
<html:table id="id_8DFCBAAB-B861-4767-BF22-852DF1A07C97">
<html:colgroup>
<html:col width="0pt"/>
<html:col width="*"/>
<html:col width="0pt"/>
</html:colgroup>
<html:tbody>
<html:tr>
<html:td colspan="3" width="527">
<html:p class="Left10Point">
___________________
<html:span class="EmSpace"/>
at
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="3" width="527">
<html:p class="Left10Point">
<html:span class="EmSpace"/>
/name of seller/
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
/Address of sellers place of business/
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="3" width="527">
<html:p class="Left10Point">
not later than midnight of
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="3" width="527">
<html:p class="Left10Point">
<html:span class="SpacedLeaders"/>
(Date)
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="3" width="527"/>
</html:tr>
<html:tr>
<html:td colspan="3" width="527">
<html:p class="Left10Point">
<html:span class="EmSpace"/>
I hereby cancel this transaction
<html:span class="EmSpace"/>
<html:span class="UnderlinedLeaders"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="3" width="527">
<html:p class="Left10Point">
<html:span class="SpacedLeaders"/>
(Date)
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td colspan="3" width="527"/>
</html:tr>
<html:tr>
<html:td colspan="3" width="527">
<html:p class="Left10Point">
<html:span class="EmSpace"/>
<ns0:LabelledField>
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
(Buyer’s signature)
<html:span class="EmSpace"/>
<html:span class="EmSpace"/>
</ns0:LabelledField>
<html:span class="SpacedLeaders"/>
</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
<html:p>
(2)
<html:span class="EnSpace"/>
The reference to “three” in the statement set forth in paragraph (1) shall be changed to “five” for a buyer who is a senior citizen.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The seller shall provide the buyer with a copy of the contract or offer to purchase and the attached notice of cancellation, and shall inform the buyer orally of the buyer’s right to cancel at the time the seminar sales solicitation contract or offer is executed.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Until the seller has complied with this section, the buyer may cancel the seminar sales solicitation contract or offer.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
“Contract or sale” as used in subdivision (c), means “seminar sales solicitation contract or offer” as defined by Section 1689.24.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
The five-day right to cancel added
by the act that added paragraph (1) to subdivision (a) and added paragraph (2) to subdivision (c) shall apply to contracts entered into or offers to purchase conveyed on or after January 1, 2021.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_AB213478-7DED-49B5-9101-A08F2657C63D">
<ns0:Num>SEC. 7.</ns0:Num>
<ns0:Content>
<html:p>Section 1.5 of this bill incorporates amendments to Section 7159 of the Business and Professions Code proposed by both this bill and Senate Bill 517. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2026, (2) each bill amends Section 7159 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 517, in which case Section 1 of this bill shall not become operative.</html:p>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>
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