Do all contracts have a 3 day right to cancel

Attorney Tom Olsen: Chrissy, Bruce's call reminded me of a segment that I did on the news last week, and it was about people's three-day right to cancel contracts. We know, we get calls on a regular basis-

Attorney Chris Merrill: Correct. People get [crosstalk]--

Tom: -from people that have signed contracts to-

Chrissy: Anything. [chuckles]

Tom: -anything. Buy a house, buy a car, buy a water heater, you name it. They call us up and go, "Don't I have a three-day right to cancel this contract? Don't all contracts have a three-day right to cancel?"

Chrissy: It's interesting. People have that perception.

Tom: They do.

Chrissy: They think all contracts.

Tom: Yes. That is not the case. There's only a few situations where the law absolutely requires that you be given a three-day right to cancel. One is for home improvements, two is when you refinance your loan, and three is for door-to-door sales. Most people would recognize that, oh, that's why when I refinance my home, which a vast majority of people have done over the years, that's why three days later I had to sign a form saying I don't cancel this contract. That's why they got to wait three days to finalize my refinance because the law requires it.

Chrissy: Exactly.

Tom: Now if the law requires that there be a three-day right to cancel this contract, the law also requires that there be big, bold language in there about this three-day right to cancel and exactly how you do this cancellation. If you do have a three-day right to cancel within your contract, it is not hidden somewhere in the fine print. It's right there, big, bold.

Now some companies, they're not required to give you a three-day right to cancel, but out of their goodwill, and God bless them, they do give you a three-day right to cancel. For example, Carvana. You buy a car from Carvana; it says there, you've got seven days to back out of this deal.

Chrissy: That's really good to know because that's not the case with most car dealers.

Tom: Oh, no. Most used-car dealers, it's as is. You drive it off the lot, you own it, baby. If you're buying a used car, that in and of itself would be a reason to buy it from a dealer or a car seller that allows you to unwind the deal.

Chrissy: If for some reason--

Tom: Hey, folks. My name is Tom Olsen. The name of the show is Olsen on Law. You're listening to NewsRadio WFLA.