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Texas Property Code - Section 5.074. Purchaser's Right To Cancel Contract Without Cause

Legal Research Home > Texas Laws > Property Code > Texas Property Code - Section 5.074. Purchaser's Right To Cancel Contract Without Cause

§ 5.074. PURCHASER'S RIGHT TO CANCEL CONTRACT WITHOUT 
CAUSE.  (a) In addition to other rights or remedies provided by 
law, the purchaser may cancel and rescind an executory contract for 
any reason by sending by telegram or certified or registered mail, 
return receipt requested, or by delivering in person a signed, 
written notice of cancellation to the seller not later than the 14th 
day after the date of the contract.
	(b)  If the purchaser cancels the contract as provided by 
Subsection (a), the seller shall, not later than the 10th day after 
the date the seller receives the purchaser's notice of 
cancellation:
		(1)  return to the purchaser the executed contract and 
any property exchanged or payments made by the purchaser under the 
contract;  and
		(2)  cancel any security interest arising out of the 
contract.              
	(c)  The seller shall include in immediate proximity to the 
space reserved in the executory contract for the purchaser's 
signature a statement printed in 14-point boldface type or 14-point 
uppercase typewritten letters that reads substantially similar to 
the following:

YOU, THE PURCHASER, MAY CANCEL THIS CONTRACT AT ANY TIME DURING THE 
NEXT TWO WEEKS. THE DEADLINE FOR CANCELING THE CONTRACT IS (date).  
THE ATTACHED NOTICE OF CANCELLATION EXPLAINS THIS RIGHT.
	(d)  The seller shall provide a notice of cancellation form 
to the purchaser at the time the purchaser signs the executory 
contract that is printed in 14-point boldface type or 14-point 
uppercase typewritten letters and that reads substantially similar 
to the following:
	(date of contract)                                                             

NOTICE OF CANCELLATION
	YOU MAY CANCEL THE EXECUTORY CONTRACT FOR ANY REASON WITHOUT 
ANY PENALTY OR OBLIGATION BY (date).
		(1)  YOU MUST SEND BY TELEGRAM OR CERTIFIED OR 
REGISTERED MAIL, RETURN RECEIPT REQUESTED, OR DELIVER IN PERSON A 
SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER 
WRITTEN NOTICE TO (Name of Seller) AT (Seller's Address) BY (date).
		(2)  THE SELLER SHALL, NOT LATER THAN THE 10TH DAY AFTER 
THE DATE THE SELLER RECEIVES YOUR CANCELLATION NOTICE:
			(A)  RETURN THE EXECUTED CONTRACT AND ANY PROPERTY 
EXCHANGED OR PAYMENTS MADE BY YOU UNDER THE CONTRACT;  AND
			(B)  CANCEL ANY SECURITY INTEREST ARISING OUT OF 
THE CONTRACT.             

I ACKNOWLEDGE RECEIPT OF THIS NOTICE OF CANCELLATION FORM.                    

________________________                              ________________________

(Date)                                   (Purchaser's Signature)              

I HEREBY CANCEL THIS CONTRACT.                                                

________________________                              ________________________

(Date)                                   (Purchaser's Signature)              
	(e)  The seller may not request the purchaser to sign a 
waiver of receipt of the notice of cancellation form required by 
this section.

Added by Acts 1995, 74th Leg., ch. 994, § 3, eff. Sept. 1, 1995.  
Renumbered from V.T.C.A., Property Code § 5.097 by Acts 2001, 
77th Leg., ch. 693, § 1, eff. Sept. 1, 2001.

Last modified: August 11, 2007