Door-to-Door Roofing Contract, Large Deposit, and Deductible Absorption
A 78-year-old homeowner signs a $42,000 contract at her kitchen table after a door-to-door salesperson for a roofing company says her roof has 'storm damage that the insurance company will pay for.' The contract covers roof replacement, gutters, and a $6,000 deductible that the salesperson says the company will 'absorb' by inflating the insurance claim. The contract is one page, has no cancellation notice, no Oklahoma registration number, and no start or completion dates. The homeowner pays a 40 percent deposit by check. The next day she calls to cancel because her son says the price is too high. The salesperson did not leave a copy of the contract. The company says the contract is binding and threatens to file a lien against her house. She has not contacted her insurer.
1. Does the homeowner have a right to cancel the contract? What facts support or weaken that right?
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The homeowner likely has a right to cancel. Oklahoma's Home Solicitation Sales Act generally gives a buyer three business days to cancel a sale solicited at the buyer's residence, and the contract must include written notice of that right. The contract here has no cancellation notice, so the cancellation period may be extended. The salesperson also did not leave a copy, which weakens the company's position. The homeowner should cancel in writing, keep proof of delivery, and stop payment if the check has not cleared. The company's threat of a lien does not erase the cancellation right.
2. What contract terms are missing, and what concerns arise from the 40 percent deposit and the deductible offer?
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Required terms include the contractor's Oklahoma registration number, a description of work and materials, start and completion dates, total price and payment schedule, cancellation notice, and warranty information. The one-page contract is deficient. The 40 percent deposit is also a red flag and should be negotiated down; Oklahoma consumer protection concerns arise when a contractor takes a large deposit and has no dates or registration. The homeowner should not sign a revised contract without reading it and should require the registration number to be verifiable with the CIB.
3. How should the homeowner respond to the deductible 'absorption' and the lien threat?
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Absorbing the deductible by inflating the claim is insurance fraud and exposes both the contractor and homeowner to serious consequences. The homeowner should not agree to it and should contact her insurer and the Oklahoma Insurance Department. The lien threat is also improper if used to intimidate a consumer who is exercising a cancellation right. The homeowner should send a written cancellation and a demand for refund, file complaints with the CIB and the Attorney General's consumer protection unit if needed, and not let the contractor start work. If a lien is filed, she should get legal advice promptly.