Contract Cancellation periods or “Cooling off periods”

In California, you have the right to cancel (for any reason) certain types of transactions within a specified time period. These are often referred to as “cooling off” periods. You do NOT need to pay a picture of man hands tearing contract papercancellation fee, but you may have to pay a prorated amount for any time or services you used before cancelling. The following are cancellation periods for select types of transactions (see more here):

Car related
Car Sales and Leases: You do NOT have a right to any cancellation period or cooling off period for automobile sales or leases.1See CA Dept of Consumer Affairs “Consumer Transactions
New car warranty: 60 days to cancel2Civ. Code § 1794.41(a)(4)(A)
Used car warranty: 30 days to cancel3Civ. Code § 1794.41(a)(4)(A)
Financial and insurance
Credit Repair Services: 5 days4Civ. Code § 1789.16
Insurance (life insurance of under $10,000): between 10 and 30 days as determined by insurer 5Ins. Code § 10127.7
Insurance (disability, seniors, life): 30 days6Ins. Code 786
Insurance (property): you may cancel at any time7Ins. Code § 6010(a)
Home related
Home Equity Sale During Foreclosure: 5 business days8Civ. Code § 1695.4(a)
Home Loans: 3 business days912 CFR 226.23
Home Improvements Contracts: 3 business days if you are using the house as collateral for the home improvement contract1012 CFR 226.23
Home Repair or Restoration Contracts Following a Disaster: 7 business days11unless contract is automatically void. Civ. Code § 1689.6(c)
Home-Secured Transactions: This is any transaction in which you use your house as collateral in case you can’t later pay for the transaction. — 3 business days1212 CFR 226.23
Repair Services
Used car warranty/repair services: 30 days13Civ. Code § 1794.41(a)(4)(A)
New car warranty/repair services: 60 days14Civ. Code § 1794.41(a)(4)(A)
Home appliances/electronics repair services: 30 days15Civ. Code § 1794.41(a)(4)(A)
Any other type of goods repair services contracts:  you may cancel at any time, but seller may also charge cancellation fee unless contract is expired16Civ. Code § 1794.41(a)(4)(B)
Dance Studio Services: You may cancel at any time17Civ. Code § 1812.54(b)
Dental Services Contracts: 3 business days18Civ. Code § 1689.3
Discount Buying Services: 3 days19Civ. Code § 1812.118
Electrical Services Contract: 3 business days20PUC 395
Funeral Contracts (pre-need): you may cancel at any time21B&P 7737
Gym/Health Studio Services: 5 business days22Civ. Code § 1812.85(b)
Immigration Consultant Services: 3 days23B&P 22442(f)
Job Listing Services: 3 business days24Civ. Code § 1812.516(a)(6)
Legal Document Assistant: 24 hours25B&P 6410(e)
Real Estate Transfer: for delayed or materially amended Transfer Disclosure Statement — 3 days (if statement delivered personally) or 5 days (if statement delivered by mail)26Civ. Code § 1102.3(b)
Water Treatment Devices — 3 business days27B&P 17577.3
Weight-loss Services: 3 business days28Civ. Code § 1694.6(a)

Contracts signed in certain locations:

Contract signed in your home or door-to-door sales: Almost any consumer contract entered into in your home (or somewhere other than the seller’s place of business) for goods or services of $25 or more can be canceled within 3 business days after you signed the contract.29Civ. Code §§ 1689-1689.12

Contract signed during a seminar sales pitch: 3 business days30Civ. Code § 1689.20

Internet/Mail/Telephone Sales: when order has not been filled or product has not shipped within the time frame seller gives you, you may cancel the order. If the seller does not give you a time frame, seller must ship within 30 days, otherwise you may cancel31B&P 17538(a); 16 CFR Part 435

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