MHIC Door-to-Door Sales Act

Question 1

Under Maryland's Door-to-Door Sales Act (Home Solicitation Sales Act), how many business days does a homeowner have to cancel a contract signed at their residence?

Accepted Answer

3 business days

Answer

Maryland's Door-to-Door Sales Act gives consumers 3 business days to cancel any qualifying contract signed at their home without penalty. This 'cooling-off period' is designed to protect homeowners from high-pressure in-home sales tactics.

Question 2

The Maryland Door-to-Door Sales Act applies to home solicitation contracts of what minimum dollar amount?

Accepted Answer

$25

Answer

Maryland's Home Solicitation Sales Act applies to consumer transactions of $25 or more that are solicited and signed at the buyer's home. The low threshold is intentional — even modest in-home purchases trigger the cancellation right.

Question 3

Which of the following sales transactions is subject to Maryland's Door-to-Door Sales Act cancellation requirements?

Accepted Answer

A $500 painting contract signed at the homeowner's kitchen table

Answer

The Door-to-Door Sales Act applies to contracts of $25 or more that are solicited and signed at the buyer's home. A $500 painting contract signed at the homeowner's residence meets both criteria — the amount threshold and the in-home location.

Question 4

When a Maryland contractor completes a home solicitation sale, they are REQUIRED to provide the buyer with:

Accepted Answer

A copy of the signed contract and a written notice of the right to cancel

Answer

Maryland law requires that in any door-to-door sale, the contractor provide the customer with both a copy of the contract and a separate written notice of their right to cancel within 3 business days. Without these documents, the buyer's cancellation window remains open indefinitely.

Question 5

A homeowner cancels a $3,000 home improvement contract within the 3-day cooling-off period. The contractor had already purchased $500 in materials for the job. Under Maryland law, what is the contractor entitled to?

Accepted Answer

Nothing — the contractor must return any deposit and cannot charge for materials not yet installed

Answer

Under the Door-to-Door Sales Act, when a buyer cancels within the 3-day period, the contractor must return all deposits and cannot retain any funds or charge for materials purchased but not yet installed. The cancellation right is absolute during the cooling-off period.

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC Door-to-Door Sales Act