Can You Cancel a Contract With a Contractor in Washington?

Short Answer: Sometimes. If you signed at home, the FTC Cooling-Off Rule may give you three business days to cancel, and RCW 63.14.154 gives a similar right for certain financed home solicitation sales. Outside those windows, your contract terms and ordinary contract law decide.

Quick Facts

You signed a contract and now have second thoughts, or the contractor has given you reason to worry. Whether you can cancel, and on what terms, depends on how and where the contract was made and what it says. This is general information, not legal advice.

Cancellation Right 1: The FTC Cooling-Off Rule

The Federal Trade Commission’s Cooling-Off Rule (16 CFR part 429) gives buyers three business days to cancel many sales made at their home or at a location that is not the seller’s regular place of business, above a small minimum amount.

Key points:

• The seller must give you a written cancellation notice and tell you about your right to cancel.
• To cancel, you sign and send the notice (or another written notice) before midnight of the third business day.
• The seller then has a set time to refund payments and return any trade-in.

There are exceptions, for example certain emergency repairs where the buyer waives the right in writing. Read the full rule on the eCFR site linked in the sources.

Cancellation Right 2: Washington Financed Home Solicitation Sales

Washington law adds a specific right for certain financed sales. Under RCW 63.14.154, when a retail installment transaction is solicited in person away from the seller’s place of business, such as at your home, the buyer may cancel until midnight of the third business day after signing. Sundays and holidays do not count.

• Notice of cancellation is given by certified mail, return receipt requested, to the seller’s address in the contract.
• The seller must refund payments and return any trade-in within 10 days after receiving the notice.
• The contract must disclose the right to cancel.

Watch out: Cooling-off periods are short and strict. If you want to cancel, send notice immediately, in writing, by a method that proves delivery.

Cancellation Right 3: Your Contract

Outside a cooling-off window, your rights come from the contract and general contract law. Look for:

• a termination clause describing when either side can end the contract,
• notice requirements and cure periods,
• what happens to deposits, materials ordered and work completed,
• dispute resolution terms.

A well-drafted contract, as in the Home Improvement Contract Checklist for Washington, answers these questions before you need them.

Ending a Contract for Cause

If the contractor has seriously breached the contract, for example by abandoning the job, doing dangerous work or working without registration, you may have grounds to terminate. Before doing so:

1. Document the problems with dates and photos.
2. Give written notice describing the breach and, if the contract requires, a chance to fix it.
3. Keep copies of everything.
4. Get legal advice if significant money is involved.

Terminating without a valid reason can expose you to a claim for the contractor’s lost profit.

When the Contractor Is Not Registered

Under RCW 18.27.080, a contractor generally cannot sue to collect payment for work requiring registration unless it was registered when it contracted. If your contractor turns out not to be registered, see What to Do If a Contractor Is Unlicensed in Washington.

How to Cancel Properly

• Read the contract and any cancellation notice provided.
• Write a short, clear cancellation letter with your name, address, the contract date and a statement that you are cancelling.
• Send it by a trackable method, certified mail where the law requires it.
• Keep proof of sending and delivery.
• Do not allow work to start if you are within a cooling-off window and have decided to cancel.

Deposits and Materials

If you cancel within a cooling-off period, the law generally requires a refund. Outside it, the contract governs. Custom-ordered materials are a common source of disputes; clarify ownership and cost before signing.

If the Contractor Will Not Refund

• Put your request in writing with a deadline.
• File a complaint with the Washington Attorney General’s informal resolution service; see How to File a Complaint Against a Contractor in Washington.
• Consider small claims court or a bond claim against a registered contractor.

Avoiding Regret in the First Place

Many cancellations follow high-pressure sales. Take a day before signing, verify the registration, get competing bids and read every page. Watch for the patterns in Contractor Scam Red Flags.

Quick Reference

A Sample Cancellation Letter

Tip: “To [contractor name and address]. I am cancelling the contract signed on [date] for work at [address]. Please refund all payments within the time required by law. [Your name, address, date, signature.]”

Send it by a trackable method. If the law or your contract specifies a method, such as certified mail, use that method exactly.

Key Terms

• Business day: usually Monday to Saturday excluding holidays for the FTC rule; check the definition that applies to your situation.
• Retail installment transaction: a sale where you pay over time under a finance agreement with the seller.
• Termination for cause: ending a contract because the other side seriously breached it.

Common Mistakes

The most common mistakes are waiting too long, cancelling by phone only, and letting work start while you decide. Others include losing the copy of the contract that shows the cancellation notice, sending notice to the salesperson’s personal number rather than the seller’s address on the contract, and not keeping proof of sending. If you are unsure whether a cooling-off right applies, send a written cancellation anyway within the window and get advice afterwards. A notice sent in time and later found unnecessary costs little; a notice sent late cannot be fixed.

Bottom Line

You may be able to cancel within three business days if you signed at home or financed a home-solicited sale. After that, your contract controls. Act fast, put everything in writing and keep proof.