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Texas · home improvement

Your rights in Texas

Information, not legal adviceRules checked Oct 4, 2026

3 business days to cancel

If they sold it in person away from their office

Cancel in writing by midnight of the third business day. Money back within 10 business days. Home solar: 5 business days.

Some sales are excepted, such as licensed plumbing, AC or electrical work you started.

The 3 exceptions, in the rule's words
  • Sales made after you and the contractor negotiated at a business establishment in a fixed location where the goods or services are offered or shown for sale (Business & Commerce Code sec. 601.002(b)(3)(B)).
  • Sales made under a revolving charge account or retail charge agreement you already had (sec. 601.002(b)(3)(A)).
  • Work by a licensed plumber, air conditioning and refrigeration contractor or electrical license holder: the right does not apply when you started the transaction, unless it involves a breach of express warranty or a negligent installation that violates the applicable building code (Occupations Code secs. 1301.004, 1302.003, 1305.004).
Longer in some cases

5 instead of 3, for agreements to buy or lease a home solar energy system, wherever signed (Occupations Code sec. 1806.156).

Read the full rule

When it applies

The contractor or its agent asked for the sale in person somewhere other than its place of business (for example, at your home), you gave your agreement or offer to buy somewhere other than its place of business, and the price is more than $25.

If a contractor sells you the job in person away from its place of business (for example, at your home) for more than $25, you can cancel in writing until midnight of the third business day after you sign. The contractor must give you a dated contract with its name and address, a cancellation statement near your signature and two cancellation forms. It must refund your payments within 10 business days of getting your notice. For a home solar sale or lease, you have 5 business days to cancel, wherever you sign.

Texas AG: Door-to-door sales · read on texasattorneygeneral.gov · checked Oct 4, 2026 (official source, opens in a new tab)

The contract must include

Source: TX law

An estimate isn't the contract. Ask for all 12 in writing before you sign.

  • "Know your rights" disclosureBefore you sign: show the rule's own words

    In the rule's words

    Before you sign a contract to build or repair your residence, the contractor must give you the state's 'Know your rights and responsibilities under the law' disclosure statement (Property Code sec. 53.255).

  • List of subs & suppliersBefore work starts: show the rule's own words

    In the rule's words

    Before work starts, the contractor must give you a written list of the subcontractors and suppliers it plans to use, with each one's name, address and phone number, and an updated list within 15 days after one is added or dropped. You give up this right only by signing a written waiver (sec. 53.256).

  • Disbursement statementsWith each payment request: show the rule's own words

    In the rule's words

    Each time the contractor asks you or your lender for payment, it must give you a disbursement statement with the name and address of each subcontractor it plans to pay from that money (sec. 53.258).

  • Bills-paid affidavitAt final payment: show the rule's own words

    In the rule's words

    At final payment, the contractor must give you a sworn statement (affidavit) that all bills for labor and materials are paid, or listing who is still owed and how much (sec. 53.259).

  • Homestead lien warningIf they can put a lien on your home: show the rule's own words

    In the rule's words

    If the contract lets the contractor put a lien on your homestead, it must be in writing and signed before work starts, by both spouses if you are married. It must also carry the bold 'IMPORTANT NOTICE' warning that you could lose your home if you do not meet its terms (Property Code secs. 41.007 and 53.254).

  • Homestead lien conditionsRenovation liens: a wait and a 3-day cancel: show the rule's own words

    In the rule's words

    If that homestead lien is for repairing or renovating existing improvements, the Texas Constitution lets it be enforced against your home only if: both spouses consent in writing; you sign only at the office of a third-party lender, an attorney or a title company; you sign no sooner than the fifth day after you apply in writing for credit for the work; and the contract expressly lets you cancel without penalty within 3 days after everyone signs. The 5-day wait and the 3-day cancellation do not apply to immediate repairs of conditions that materially affect health or safety, if you acknowledge that in writing (Texas Constitution art. XVI, sec. 50(a)(5)).

  • Arbitration clause in boldIn a homestead improvement contract: show the rule's own words

    In the rule's words

    In a homestead improvement contract, a clause requiring binding arbitration must be in at least 10-point bold type, or it cannot be enforced against you (sec. 41.007).

  • Cancel statement & formsIf sold away from their office: show the rule's own words

    In the rule's words

    If you were sold the job away from the contractor's place of business, the contract must be in the language used in the sales pitch. It must show the date, the contractor's name and address and a bold cancellation statement near your signature, and come with two completed notice-of-cancellation forms (Business & Commerce Code secs. 601.052-601.053).

  • Deductible noticeInsurance-paid jobs of $1,000 or more: show the rule's own words

    In the rule's words

    If the job will be paid from a property insurance claim and costs $1,000 or more, the contract must carry a 12-point bold notice that Texas law requires you to pay your deductible (Business & Commerce Code sec. 27.02).

  • Solar: installer & permitsA licensed electrician named: show the rule's own words

    In the rule's words

    For a home solar sale or lease that includes installation, the contract must say a licensed electrical contractor will install the system and conspicuously give its name and license number (or a list of electrical contractors, one of whom must be chosen). It must say the seller will get the permits and the utility's approval to connect, give the last date to cancel and a mailing or email address for the notice, and, if a lender tied to or referred by the seller finances it, require that lender to cancel the loan if you cancel (Occupations Code secs. 1806.155-1806.156).

  • Solar: retailer registrationRetailer and salesperson numbers: show the rule's own words

    In the rule's words

    A registered solar retailer's contract must also show the name and registration number of the retailer and of the salesperson (Occupations Code sec. 1806.154(b)).

  • Disaster repair contractOut-of-area contractors after a disaster: show the rule's own words

    In the rule's words

    For repairs after a declared natural disaster, by a contractor that has not had a physical business address in your county or a neighboring county for at least a year, the contract must be in writing. It must carry a bold statement that the contractor may not require payment before work begins, or partial payments larger than the work done (Business & Commerce Code secs. 58.002-58.003).

On signing day

  • Keep a signed copy
  • Find the cancel notice
Sources29 official pages · checked Oct 4, 2026

Notes from our check

  • How the sources were read: statutes.capitol.texas.gov is a single-page app, so a plain fetch of its /Docs/ URLs returns only the site shell. On 2026-10-04 the independent verifier re-read every cited chapter (and Constitution art. XVI) from the files that app loads, served by the legislature at tcss.legis.texas.gov/resources/<code>/htm/<chapter>.htm. The app's own script has a route that handles /Docs/ paths, so the public links should open the chapter, but no one opened them in a browser; a person should open one once to confirm it renders. The Texas AG pages returned HTTP 402 to one automated fetcher but loaded normally with a browser user agent and were read in full. The TDLR, Sunset Commission, TSBPE and TDA pages were read directly. No web search was used.
  • DEPOSIT: no Texas statute was found that caps the deposit or down payment on residential home improvement contracts in general. The AG's home improvement page says homeowners should expect to pay part of the cost before work begins, except in certain cases after a disaster. depositCap is null, so the app must not state a Texas cap and must not infer one from another state.
  • Not a cap, disaster repairs (Business & Commerce Code ch. 58, secs. 58.001-58.003): after a natural disaster declared by the governor or a county judge, a disaster remediation contractor may not require full or partial payment before work begins, and partial payments may not exceed an amount reasonably proportionate to the work done, including materials delivered. The chapter does not apply to a contractor that has kept a physical business address in the property's county, or a neighboring county, for at least one year before the contract (sec. 58.002(b)). It cannot be waived (sec. 58.005).
  • Not a cap, trust funds and construction account (Property Code ch. 162): construction payments to a contractor are trust funds (sec. 162.001), and the owner is a beneficiary under a residential construction contract (sec. 162.003(b)). A contractor with a written contract over $5,000 to improve a residential homestead must deposit the trust funds in a construction account at a financial institution (sec. 162.006). The AG page says the same and suggests asking for written proof that the account exists.
  • Lien protection, not a deposit limit: during the work and for 30 days after completion the owner must reserve 10 percent of the contract price, or 10 percent of the value of the work done (Property Code sec. 53.101). The statutory disclosure (sec. 53.255) and the homestead-lien notice (sec. 53.254(g)) repeat this and tell owners to withhold the amount in any subcontractor's or supplier's written notice of claim, or risk a lien.
  • Homestead liens: Texas Constitution art. XVI, sec. 50(a)(5) (read on the legislature's site) adds a separate 3-day right to rescind for contracts that create a lien on a homestead for repairing or renovating existing improvements, plus the signing-place and 5-day rules in contractMust. It applies only to those lien contracts, so it is described in contractMust and not placed in the cancellation fields. The AG page also advises that a notary other than the salesperson witness the signature on a lien contract.
  • REGISTRATION: Texas has no statewide general contractor or home improvement contractor license or registration. The Texas Residential Construction Commission, which registered builders, was abolished and its Act expired on September 1, 2009 (Sunset Advisory Commission page). registration is null. Property Code sec. 41.007(a)(1)-(2) still requires a TRCC registration number and complaint address 'if the contractor is required to register as a builder with the commission.' No such registration exists any more, so the app must never ask for a TRCC number. Statewide licenses exist only for specific trades (see tradeCoverage); the AG page tells homeowners to check the state licensing agency when the worker is one 'who must be licensed by the state (such as an electrician)'. City or county contractor registration was not checked. The AG page says businesses must register with the Secretary of State, but that is entity registration, not a contractor credential.
  • CANCELLATION: the state's own right is Business & Commerce Code ch. 601, not the federal FTC rule. Sec. 601.054 lets a contractor use the FTC cooling-off forms to meet the notice rules. Chapter 601 does not define 'business day', so the app should not say whether Saturday counts. The solar statute (sec. 1806.156(a)) does define it and excludes Saturday, Sunday and legal holidays. The refund deadline is 10 BUSINESS days (sec. 601.154; the AG page says 'ten business days'), not calendar days, even though refundWithinDays only holds the number 10.
  • Cancellation details from ch. 601: the contractor must also tell you orally about the right to cancel at the time you sign (sec. 601.152). It is not entitled to pay for services performed under a canceled transaction (sec. 601.101). A sale that violates sec. 601.053(b) or Subchapter D is void (sec. 601.201). Exceptions not relevant to home improvement (farm equipment, insurance sales, some real-property sales) are left out of the exceptions list. Chapter 601 contains no emergency-repair waiver of its own.
  • Solar (Occupations Code ch. 1806): the 5-business-day right to cancel and the required contract terms have applied since September 1, 2025. Since September 1, 2026, solar retailers and solar salespersons must be registered with TDLR (TDLR 'What's in Effect When' page). Where ch. 1806 conflicts with ch. 601, ch. 1806 prevails (sec. 1806.006). Licensed electrical contractors that sell solar through their own employees are exempt from the solar registration but must follow secs. 1806.155-1806.156 (sec. 1806.004). The chapter does not apply to systems for temporary or emergency use or a single appliance, systems under one kilowatt peak, systems sold for commercial or nonresidential use or with new residential construction, or systems serving a multifamily dwelling that 'exceeds four dwelling units or stories' (sec. 1806.005). TDLR's 2025-09-10 news release instead says 'four or more' units or stories; the statute's wording is used here. TDLR's program page says it is suspending enforcement of its rules 16 TAC 71.41 (contract disclosures) and 71.43 (educational materials) until November 1, 2026; the statutory contract terms and cancellation right are not suspended.
  • Trades that were partly credentialed and left out of both lists: outdoor_landscaping, because only irrigation work needs a TCEQ license (Occupations Code sec. 1903.251). appliance-repair, because TDLR licenses residential appliance installation (connecting or disconnecting an appliance), not repair (secs. 1305.002(12-b), 1305.151). smart-home, because only alarm-system companies need a DPS license (sec. 1702.102). restoration and environmental-testing, because only mold assessment and remediation need TDLR licenses (sec. 1958.101), with exemptions such as projects under 25 contiguous square feet (sec. 1958.102(c)). pools, because TDLR licenses only pool-related electrical work, as residential appliance installation (sec. 1305.002). Roofing, windows_doors, flooring, painting, fencing, chimney-fireplace, foundation-waterproofing and the other slugs were not checked trade by trade and are left out.

General information from official Texas sources. For your situation, ask the state's consumer protection office or a lawyer.

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