3.4 In-Home Sales: The Home Solicitation Sales Act & Door-to-Door Roofing Sales

When the Act Applies

A home solicitation sale under MCL 445.111 is a sale of goods or services over $25 in which the seller solicits the sale in person, by telephone, or in writing, the buyer receives the solicitation at a residence, and the buyer agrees or offers to buy there. Exclusions include sales made after prior negotiations at the seller's fixed business location, sales at the business location, and sales made from an ad in a general-circulation publication.

For roofers, the Act covers the canvasser who knocks after a hailstorm, the salesperson who measures and signs at the kitchen table, and the call that sets up an appointment where the homeowner signs. A homeowner who comes into your office and signs there is generally outside the Act.

What the Contract Must Contain (MCL 445.113)

1. The date of the transaction is the date the buyer actually signs.
2. Next to the buyer's signature line, a statement like this: "You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right." The statement also says the seller cannot send a courier or other third party to collect payment at the home before the 3-day period ends.
3. A notice of cancellation attached in duplicate to the buyer's copy, or printed on its back, using the statutory form. The form tells the buyer that payments will be returned within 10 business days, how to make goods available for pickup, and where and by what date to send the cancellation.

Formatting rules:

• The notices must be in not less than 10-point bold type and 2 points larger than the contract text.
• The agreement and notice must be in the same language as the oral sales presentation.
• The seller fills in the transaction date and the cancellation deadline. An error does not reduce the buyer's rights.

Until the seller complies, the buyer may cancel by notifying the seller in any manner (MCL 445.113(4)). The cancellation right does not start running until proper notice is given.

Counting the 3 Business Days

A business day under MCL 445.111(c) is Monday through Friday. It excludes Saturday, Sunday, and these holidays: New Year's Day, Martin Luther King's birthday, Washington's birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.

Cancellation happens when the buyer mails or delivers the notice, or any other written notice, to the seller's address. A mailed notice is effective when it is deposited in a mailbox, properly addressed and stamped (MCL 445.112(2)–(3)).

The Emergency Exception (MCL 445.112(5))

A buyer who needs work done immediately can lose the right to cancel, but only if all of these conditions are met:

1. The buyer asks the seller to provide goods or services without delay because of an emergency, such as a tree through the roof.
2. The seller in good faith makes a substantial beginning on the work before the buyer gives notice of cancellation.
3. The buyer gives the seller a separate, dated, signed statement in the buyer's own handwriting describing the emergency and expressly waiving the 3-day right.
4. For goods, they cannot be returned in substantially as good condition.

A preprinted waiver clause in the contract does not meet requirement 3.

After a Cancellation

The rule on services is the reason experienced contractors do not start tear-off during the cancellation period, unless a documented emergency waiver meets every requirement. If a crew strips a roof on day 1 and the homeowner cancels on day 3, the contractor cannot charge for that labor.

Telephone Solicitation

The Act also regulates telephone solicitation:

• Recorded-message telephone solicitations are prohibited (MCL 445.111a(1)).
• Callers must follow the do-not-call list, identify themselves and the business, and not block caller ID (MCL 445.111a–111b).
• It is an unfair practice to misrepresent the price, the terms, or the right to cancel a home solicitation sale (MCL 445.111c). A knowing violation is a misdemeanor, and a buyer who suffers a loss may recover actual damages or $250, whichever is greater, plus attorney fees.

Licensing Rules for Door-to-Door Sales

• A canvasser who signs roofing contracts for pay must be a licensed salesperson under one licensee, carrying and showing the ID card (Section 1.4).
• Advertising, including door hangers and yard signs, must show the licensee's name, license number, and actual business address (R 338.1532).
• Bonuses that depend on displaying the home or getting referrals are prohibited (R 338.1532(2)).
• The entire agreement, including any finance charges, must be delivered (MCL 339.2411(2)(h)).