How can you cancel a home improvement contract in Florida
Home owners can cancel a home improvement contract within three-days under Florida law if certain conditions are met. Also if the contractor is unlicensed then the contractor may not enforce the contract under Florida law which can result in its cancellation. Lastly the terms of the contract itself may have some cancellation or termination provision that allows the homeowner to get out of the contract even later in the actual construction process.
Florida’s mandatory rescission term for home improvement contracts
3-day notice to rescind a home improvement contract
Certain home improvement contracts must have a 3-day rescission provision under Florida Statute 520.72. That Statute requires that every home improvement finance seller or home improvement seller must give the buyer or homeowner notice of the right to rescind the contract. To understand other mandatory disclosure requirements in home improvement contracts you should read my article on How to avoid home improvement contract problems.
Calculating the three days for rescission
The three days for the rescission start from the execution of the contract and run through midnight on the third business day. The critical component is that the three days are business days meaning that weekends and holidays do not count.
How to send the rescission or cancellation notice
The homeowners notice to the contractor must be given by certified mail or registered mail, but that does not preclude other notice methods like email, fax, or overnight delivery. Because it may take more than three days for the mail to reach the contractor it is often a wise decision to also utilize other methods of conveying the notice. The impact is that a homeowner who properly cancels the contract is not liable to the contractor for damages caused by the cancellation.
For the home improvement contractor the important issue to acknowledge is that your contract for a particular job may indeed require that you give the homeowner a 3-day rescission notice as required by Florida law. If the work does not qualify for the notice you may make a business decision to offer that to your customer as an accommodation so as to not have to modify your contract for each job. That is certainly an issue to discuss with your business attorney in reviewing or preparing your business contracts.
For the home improvement contractor the important issue to acknowledge is that your contract for a particular job may indeed require that you give the homeowner a 3-day rescission notice as required by Florida law. If the work does not qualify for the notice you may make a business decision to offer that to your customer as an accommodation so as to not have to modify your contract for each job. That is certainly an issue to discuss with your business attorney in reviewing or preparing your business contracts.
How does Florida law define a home improvement finance seller or home improvement seller
Florida Statute 520.61(14) defines the terms home improvement finance seller and home improvement seller. That part states that it is any business or person who enters into two or more home improvement contracts in any calendar year where each contract was for $500 or more.
More simply stated a home improvement finance seller or home improvement seller is someone in the business of substantial home improvements like kitchen or bathroom remodeling.
More simply stated a home improvement finance seller or home improvement seller is someone in the business of substantial home improvements like kitchen or bathroom remodeling.
What home improvements qualify for the 3-day cancellation term
Under Florida’s three day statutory rescission law home improvement is defined as repair, replacement, remodeling, alteration, conversion, modernization, or improvement of, or addition to, any land or building which is to be used as a single-family residence or dwelling place when such construction is done pursuant to a home improvement contract and a security interest in the real property is retained. So the definition of what home improvements qualify for the 3-day cancellation term is fairly broad and encompasses a large variety of home improvement work.
But the 3-day cancellation term requirement does not apply to new home construction or new home warranty work. It also does not apply to a situation where someone just sells the home improvement materials and does not perform the repair or remodel work.
But the 3-day cancellation term requirement does not apply to new home construction or new home warranty work. It also does not apply to a situation where someone just sells the home improvement materials and does not perform the repair or remodel work.
Not all home improvement contracts require the 3-day rescission notice
Every home improvement contract is not required to contain the three day rescission notice. Only those that meet certain criteria are required to include that provision. To qualify for the mandatory three-day rescission provision a home improvement contract must be in writing between the contractor and homeowner. It must also include all labor, materials, and services to be furnished and the installment payments have to be over a period greater than 90 days.
So not every home improvement contract in Florida automatically qualifies for the three-day cancellation provision but if a contract does qualify and the contractor omits the notice then the homeowner can still cancel because the contractor was legally obligated to provide this option to the homeowner. Also omitting a required 3 day rescission or cancellation notice may render the contract unenforceable or terminable later depending on the circumstances.
So not every home improvement contract in Florida automatically qualifies for the three-day cancellation provision but if a contract does qualify and the contractor omits the notice then the homeowner can still cancel because the contractor was legally obligated to provide this option to the homeowner. Also omitting a required 3 day rescission or cancellation notice may render the contract unenforceable or terminable later depending on the circumstances.
What happens when the home improvement contractor is not licensed
It is important to recognize that not all home improvement work has to be performed by a licensed contractor or even requires a permit. It is therefore useful to check with your local building department even before identifying a contractor to understand what licenses and permits will be required for the improvements you intend to make.
Once you identify whether the home improvement work you wish to undertake must be performed by a licensed contractor and what permits are required you can then begin to identify a potential contractor for the work. That will enable you to inquire about their license and the permit process when you vet the contractor. When you identify the contractor that you plan to use you can easily verify that contractor’s license on the Florida Department of Business and Professional Regulation website - myfloridalicense.com.
Once you identify whether the home improvement work you wish to undertake must be performed by a licensed contractor and what permits are required you can then begin to identify a potential contractor for the work. That will enable you to inquire about their license and the permit process when you vet the contractor. When you identify the contractor that you plan to use you can easily verify that contractor’s license on the Florida Department of Business and Professional Regulation website - myfloridalicense.com.
Contracts by unlicensed contractors are unenforceable
If the home improvement work that you plan must be performed by a licensed contractor and an unlicensed contractor presents you with a written agreement for the work then that unlicensed contractor may not enforce the contract under Florida law. Likewise if you have already hired a contractor and learn that the contractor is unlicensed and is required to hold a valid and active license, then the unlicensed contractor cannot enforce its own contract.
Florida Statute 489.128 clearly states that any contract entered into by an unlicensed contractor is unenforceable by the contractor. That part does not prohibit the homeowner from enforcing the contract but it precludes the unlicensed contractor from availing itself of certain critical remedies like lien rights.
Florida Statute 489.128 clearly states that any contract entered into by an unlicensed contractor is unenforceable by the contractor. That part does not prohibit the homeowner from enforcing the contract but it precludes the unlicensed contractor from availing itself of certain critical remedies like lien rights.
What contractors can do to protect their business
For a contractor the lesson here is to ensure that your license or that of your qualifier is valid and current. If you are unlicensed and enter into home improvement contracts requiring a license then you may create more problems for yourself beyond the inability to enforce your own contract. A smart contractor will have their home improvement contracts prepared in concert with competent counsel who can ensure that the proper disclosures and notices are included.
How else can you get out of a home improvement contract
If the contractor you hired for your home improvement project was required to give notice of the three-day rescission provision and properly did so in the written contract and the contractor is licensed to perform the work then the terms of the contract may provide a mechanism for how it may be terminated prior to the end of the project.
If the contract has no early termination provision or similar component that does not prevent the homeowner from discussing the option with the contractor. This highlights the opportunity to have the home improvement contract reviewed by competent and experienced counsel before entering into it. By doing so you can avail yourself of the opportunity to propose such terms in the event they are later needed.
If the contract has no early termination provision or similar component that does not prevent the homeowner from discussing the option with the contractor. This highlights the opportunity to have the home improvement contract reviewed by competent and experienced counsel before entering into it. By doing so you can avail yourself of the opportunity to propose such terms in the event they are later needed.
The Takeaways
For the contractor it is important to ensure that your home improvement contracts comply with Florida law and that you maintain your license. Saving money by crafting your own contract may result in serious problems later that can significantly impact your business and its ability to operate in the future. Thus the more intelligent approach is to consult with your business attorney to ensure that your contracts comply with Florida law.
For the homeowner being proactive in researching licenses and permits needed for your home improvement project will help you to identify a contractor that is a proper fit for your situation. Likewise reviewing the proposed contract with your own attorney can help you to avoid problems later in the operation of the contract. If you have signed a contract and paid a deposit only to learn that your contractor is unlicensed do not panic. There are options available to you but your first response should be to consult with an experienced and competent attorney like the Law Office of David Steinfeld. The small cost of so doing may result in a quick and positive remedy.
For the homeowner being proactive in researching licenses and permits needed for your home improvement project will help you to identify a contractor that is a proper fit for your situation. Likewise reviewing the proposed contract with your own attorney can help you to avoid problems later in the operation of the contract. If you have signed a contract and paid a deposit only to learn that your contractor is unlicensed do not panic. There are options available to you but your first response should be to consult with an experienced and competent attorney like the Law Office of David Steinfeld. The small cost of so doing may result in a quick and positive remedy.
Prepared by business litigation expert attorney David Steinfeld

David Steinfeld is one of the few Board Certified business law experts in Florida. He has been licensed for almost 30 years. He is AV-Preeminent rated, ranked as one of the Best Lawyers in America by U.S. News and World Report, and consistently named a Florida Super Lawyer and one of Florida’s Legal Elite. Dave has also received Martindale’s prestigious Judicial Edition Award for high reviews by Judges, its Platinum Client Champion Award and has a 10.0-Superb rating on AVVO as well as a 10.0 rating on Justia, lawyer reviews websites.
Check out business lawyer David Steinfeld online for helpful videos and articles on Florida business law, real estate disputes, and electronic discovery solutions for your business. This article is provided for informational purposes only.
Check out business lawyer David Steinfeld online for helpful videos and articles on Florida business law, real estate disputes, and electronic discovery solutions for your business. This article is provided for informational purposes only.