What Is A Home Sales Solicitation Act Claim?

A Home Sales Solicitation Act claim (HSSA), sometimes referred to as a “cooling-off” period claim, arises when a consumer tries to cancel a contract made during a home solicitation sale. This rule, which is found in many states, gives consumers a limited time (usually three business days) to cancel the contract made at their home or another location away from the seller’s usual place of business. 

What is a home solicitation sale? 

Essentially, we’re talking about a business that sells products or services door-to-door. The seller thus “personally solicits” the sale at a location other than their primary place of business. The deal is usually struck at an individual’s home. The HSSA handles door-to-door sales. The agreement is made outside of the business’s location. The buyer agrees to purchase or makes an offer to purchase at some location where the solicitation occurs. The sale involves goods or services primarily related to personal, family, or household use, including home improvement sales. Ohio’s HSSA requires the sale to exceed a specified value ($25.00)

What are the most important aspects of the HSSA? 

The HSSA gives consumers a chance to cancel a contract that was entered into by granting them a “cooling off period,” which is typically three business days.

The HSSA also requires the seller to:

• Provide a written contract that includes the seller’s name, address, and the date of the agreement.
• Inform the buyer of their right to cancel, by both mouth and pen (including a notice of cancellation form).

In addition, sellers are prohibited from:

• Starting services or delivering goods before the cooling-off period expires
• Include certain clauses in the contract, such as confession of judgment or waiver of rights.

When does an HSSA claim arise? 

An Ohio consumer can bring an HSSA claim against the seller, if the seller:

• Fails to provide the required cancellation form
• Misrepresents the buyer’s right to cancel the transaction
• Refuses to honor a valid cancellation notice
• Negotiates or transfers the contract before the cooling-off period ends
• Engages in other deceptive or unfair sales practices related to the individual sale

What are the consequences of not complying with the HSSA? 

If a seller refuses to comply with the HSSA, the buyer can:

• Cancel the contract – A common remedy for HSSA violations is the cancellation of the contract. This allows the consumer to recover payments they have made.

• Refund payments – The seller must refund all payments within a specific timeframe (in Ohio, it’s 10 business days) after the buyer has canceled the contract.

• Potential damages – If the violation constitutes a broader deceptive practice, consumers can seek additional damages. Generally, this includes actual damages and potentially treble (triple) damages and attorney fees. 

Talk to a Columbus, OH, Home Sales Solicitation Act Attorney Today 

If you believe that a seller has violated the Home Sales Solicitation Act, you should discuss the matter with an experienced attorney. Kohl & Cook Law Firm, LLC may be able to recover treble damages on your behalf. Call our Columbus real estate lawyers to learn more.

Source:

codes.ohio.gov/ohio-revised-code/section-1345.21