Note The library cannot tell you what the law means for your situation.

Texas Laws

A statutory right to cancel a contract or return a purchase because you change your mind is not the norm in Texas. State law grants a right to cancel — also called a "right of rescission" or a "cooling off" period — in only a few specific instances.

Below is a list of Texas laws that govern the right to cancel certain consumer contracts. We caution that it may not be an exhaustive list.

If you do not see a statute that governs your particular situation, you may be bound by your agreement with the seller. Talk to a lawyer for more information about your right to cancel a contract or purchase.

Goods & Services

Texas Business and Commerce Code, Chapter 601
Door-to-door sales or sales made at a place other than the seller's place of business.
Section 301.052 of the Texas Business and Commerce Code
Goods or services purchased with a credit card from a telephone solicitor.
Section 345.066 of the Texas Finance Code
Retail installment contracts for goods and services (excluding motor vehicles) may be cancelled under certain conditions. These sales are generally between the retail buyer and seller.
Sections 702.307 - 702.308 of the Texas Occupations Code
Health spa contracts may be fully or partially refunded under certain conditions.
Section 1304.1581 of the Texas Occupations Code
Service contracts (also commonly called extended warranties) may be cancelled under certain conditions.
Section 221.041 of the Texas Property Code
Allows a purchaser to cancel a timeshare contract.
Section 222.008 of the Texas Property Code
Provides a limited right to cancel a membership camping contract under certain conditions.

Motor Vehicles

Section 348.111 of the Texas Finance Code
Motor vehicle installment contracts may be cancelled under certain conditions. Installment sales are between the retail buyer and seller and do not apply to third-party loan providers.
Section 351.111 of the Texas Finance Code
Installment contracts for commercial motor vehicles may be cancelled under certain conditions.

Insurance

Section 4102.103 of the Texas Insurance Code
Allows a consumer to cancel a contract with a public insurance adjuster within 72 hours of signature.

Real Property

Section 1201.1521 of the Texas Occupations Code
Contracts for sale, exchange, or lease of a manufactured home may be cancelled under certain conditions.
Section 5.074 of the Texas Property Code
Provides for the purchaser's right to cancel an executory contract (also known as an installment land contract, a contract for deed, or "lease to own"). Notice provisions and the time frame for cancellation are covered.
Section 82.156 of the Texas Property Code
Provides a right to cancel the purchase of a condominium unit if certain requirements are not met by the seller.
Texas Constitution art. 16 sec. 50(a)(5)(C)
Texas homestead protections provide for a limited right to cancel a remodeling contract that would put a lien on the homestead.
Texas Constitution art. 16 sec. 50(a)(6)(Q)(viii)
Texas homestead protections provide a right to rescind a home equity loan (also known as a "reverse mortgage").

Federal Regulations

Below are some of the federal laws that govern common consumer purchases.

Code of Federal Regulations, Title 12, Section 226.23
This regulation from the Federal Reserve Board is part of the Truth in Lending Regulation Z. It provides for the cancellation information for extensions of credit which will place a lien on the homestead.
Code of Federal Regulations, Title 16, Part 429
This regulation from the Federal Trade Commission discusses notice of cancellation for door-to-door purchases.

Understanding the Law

Because Texas and federal law may not be easy to understand, below you'll find a collection of resources that help to explain the law.

Do I have 3 days to return a purchase or cancel a contract in Texas?
Our Legal FAQ discusses the common misconception that there is a 3-day right to cancel any contract in Texas.
The 3-Day Right to Cancel a Purchase
Texas Attorney General's brochure explaining when the 3 day right to cancel applies.
Understanding Contracts (Houston Bar Association)
Hosted on Texas Law Help, this article is an excerpt from the Houston Bar Association's Consumer Law Handbook that discusses some basic aspects of contract law. The article looks at written and verbal contracts, the age a person needs to be to enter into a contract, and damages if a contract is breached.
Making an Informed Decision About Buying a Manufactured Home
The Manufactured Housing Division (MHD) of the Texas Department of Housing and Community Affairs administers the Texas Manufactured Housing Standards Act. This consumer information sheet discusses the right of rescission.
People's Lawyer Q&A — "Return a new vehicle"
Richard Alderman, a Texas attorney who helped draft the Deceptive Trade Practice Act, addresses the question of whether one has 3 days to return a new vehicle.
People's Lawyer Q&A — "Store refuses to give refund for gift"
Richard Alderman also answers a question related to a store refusing to issue a refund.
Protections for In-Home Purchases: The Cooling-Off Rule
This information from the Federal Trade Commission discusses the right to cancel door to door purchases.

E-Books

If you have a library account in good standing, you can check out an OverDrive e-book title or access our remote databases. Don't have a library account? Texas residents can register for a library account from home! Learn more about how to register from home .

Below are e-books that may help you with your research on cancelling consumer contracts.

Know your rights! : answers to Texans' everyday legal questions
Practical, easy-to-understand answers to questions about divorce, child support, and child custody; credit, bankruptcy, and debt collection; starting a business; leases and tenant rights; small claims court and lawyers; wills and probate; false advertising and warranties; immigration; and more.
The lawyer's guide to the Texas Deceptive Trade Practices Act
This thorough treatment of the laws surrounding the Texas Deceptive Trade Practices Act contains the most current research. Coverage includes proper party plaintiffs and defendants, breach of warranty, unconscionability, the insurance code, and interaction with other laws. This annually updated publication contains case law information and appendices with historical versions of the DTPA.