A notice concerning the purchaser’s three-day right of rescission under a contract to purchase real property must be given if (1) the seller or the seller’s agent solicits the sale at a place other than the seller’s place of business; (2) the purchaser submits the purchase contract to the seller or the seller’s agent at a place other than the seller’s place of business; and (3) the consideration payable under the purchase contract exceeds $100; unless either (1) the purchaser is represented by a licensed attorney; (2) the transaction is negotiated by a licensed real estate broker; or (3) the transaction is negotiated at a place other than the purchaser’s residence by the person who owns the property. Tex. Bus. & Com. Code § 601.002.
The notice of cancellation form must be easily detachable from the contract to which it is attached, must be in the same language as the contract, and must contain the following information and statements in ten-point bold-faced type. Tex. Bus. & Com. Code § 601.053.
Notice of Cancellation
[Date]
You may cancel this transaction, without any penalty or obligation, within three business days from the above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 business days following receipt by the merchant of your cancellation notice, and any security interest arising out of the transaction will be canceled.
If you cancel you must make available to the merchant at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale; or you may if you wish, comply with the instructions of the merchant regarding the return shipment of the goods at the merchant’s expense and risk.
If you do not agree to return the goods to the merchant or if the merchant does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation.
To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice, or send a telegram, to [name of merchant], at [address of merchant’s place of business] not later than midnight of [date].
I HEREBY CANCEL THIS TRANSACTION.
Dated: ________________________________.
[Name of purchaser]
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In addition to giving the notice of cancellation separately, the seller must insert the following at the end of the contract to purchase above the buyer’s signature. This must be in a minimum of ten-point bold-faced type. |
You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right.
[Name of buyer]