Three-day right to cancel
The three-day right to cancel is a buyer's right, under certain federal and state laws, to back out of a deal within three business days and get their money back.
Updated October 13, 2026 · 1 min read
The FTC Cooling-Off Rule
It covers sales made at the buyer's home of $25 or more, and sales at temporary locations, like a hotel room or fairground, of $130 or more. The buyer can cancel until midnight of the third business day after the sale, and the seller must give them two copies of a cancellation form and tell them about the right at the time of the sale. Some sales are excluded, including real estate, insurance and securities, and some emergency purchases.
Right of rescission on home loans
Separately, when credit is secured by the borrower's principal dwelling, the Truth in Lending rules can give the borrower until midnight of the third business day after the latest of signing, receiving the rescission notice, or receiving the required disclosures.
States can add longer or broader rights. If your sales happen at the customer's home, include the cancellation notice and forms the rules require in the document they sign.
Sources
- FTC, Buyer's Remorse: The FTC's Cooling-Off Rule May Help (16 CFR Part 429) · consumer.ftc.gov
- CFPB, Regulation Z § 1026.23, right of rescission · consumerfinance.gov