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What is Minnesota’s Three-Day Cooling-Off Law?

On behalf of Lang Law Office posted in Real Estate Transactions on Friday, August 11, 2017.

Not all contracts have a “cooling-off” period that allows consumers to cancel the contract within a few days after they sign it. However, Minnesota does have a Three-Day Cooling-Off Law (more formally known as the Home Solicitation Sales Act) for home solicitation sales.

The law applies to the rental, lease or sale of goods or services for household or personal use,and also property improvements. To qualify, the transaction must be worth over $25 and must occur somewhere other than the merchant’s regular business location. It generally applies to transactions done in convention centers, hotels or the customer’s home. The law doesn’t apply to real estate or vehicle sales.

Other contracts that have a three-day cooling-off period in Minnesota include reverse mortgages, agricultural contracts, residential siding and roofing contracts and some club memberships. Some types of contracts for other products and services have longer cooling-off periods.

If you are entering into a transaction that is subject to the Three-Day Cooling-Off Law, the seller has to provide you with information about the right to cancel the contract verbally, on the receipt and via a Notice of Cancellation form. If the seller fails to do that, the customer has longer than three days to cancel.

If your transaction is covered by the law and you elect to cancel the contract within three days, you must send the seller a written request at the address provided. Of course, it’s best to do this through certified mail or some other method where you can obtain proof of receipt. Keep a copy of your cancellation request with the delivery receipt. The merchant is required by law to refund any money you paid within 10 days.

If you are told that a contract isn’t subject to the law and believe that it is, or if a merchant is not honoring a cancellation request that you made under the terms of the Three-Day Cooling-Off Law, you may contact an experienced Minnesota attorney for legal guidance.

Source: Stillwater Gazette, “‘Cooling-off’ law for contracts,” Lori Swanson, Aug. 02, 2017