If you’re a contractor in California, you’re likely familiar with the traditional three-day cancellation window in your contracts. But many professionals overlook an important legal requirement: seniors (65 and older) are entitled to a five-day right to cancel. This isn’t optional — it’s mandated by law, and the California Pool and Spa Association is warning that ignoring it can lead to serious legal and financial trouble.
In September 2020, AB 2471 became law, extending the cancellation period for senior citizens from three to five business days, effective January 1, 2021. This new rule applies to a variety of home-related agreements, including home improvement, service, repair, door-to-door, and swimming pool contracts.
For older adults, the additional time isn’t just a formality — it’s a safeguard against high-pressure decisions during moments of vulnerability.
Failing to include the correct cancellation notice can have serious repercussions. According to Business and Professions Code Section 7167, any swimming pool contract that does not substantially meet the notice requirements of Section 7159 could be deemed void and unenforceable. Simply put, you might have no legal claim to payment.
But the risks don’t stop there. Missing this or other required disclosures can trigger a financial penalty known as disgorgement.
Disgorgement is a legal mechanism that forces contractors to return all payments received under a noncompliant contract. This can occur even if the work was performed correctly and met industry standards. Essentially, failing to provide the required cancellation notice — even by mistake — could mean giving back everything you earned under that agreement.
While the law specifically requires the extended cancellation window for seniors, many contractors find it beneficial to offer five days for all clients. Doing so simplifies paperwork, strengthens your professional reputation, and reduces legal risk. Benefits include:
• Simplified documentation: No confusion over which form applies.
• Stronger client trust: Shows your commitment to transparency and care.
• Legal protection: Lowers the likelihood of unenforceable contracts or claims.
It’s a smart strategy combining compliance with customer service.
The California Pool and Spa Association recommends that you protect your business with the following: 1. Always include the correct Notice of Right to Cancel — three days for most clients, five days for seniors — or simply use the five-day version for everyone.
2. Ensure the notice is clearly presented, in bold type, and includes a detachable cancellation form as required under Section 7159 and related Civil Code provisions.
3. Avoid costly pitfalls like void contracts (Section 7167) and disgorgement by adhering strictly to the disclosure requirements.
Stay informed and proactive to safeguard your business and maintain the trust of every homeowner you serve.
