How long do I have to cancel a contract signed at home?

Federal FTC rules give you 3 business days to cancel any contract for $25 or more signed at your home — including door-to-door and in-home security sales. The 3 business days start the day after you sign. Saturdays count, Sundays and federal holidays don't.

Do I have to give a reason to cancel within 3 days?

No. The 3-day cooling-off window is unconditional. You can cancel for any reason or no reason at all. The seller cannot ask why and cannot deny the cancellation.

What if I signed online or in a store?

The federal 3-day rule covers contracts signed at your home or anywhere outside the seller's normal place of business. Contracts signed online or at the brand's office may not have the same federal protection — check your specific contract for any contractual rescission window.

Can the company charge a restocking or activation fee if I cancel within 3 days?

No. The federal cooling-off rule prohibits any cancellation fee, restocking fee, or activation charge for cancellations within the 3-business-day window. Any deposit must be refunded within 10 days.

Just Signed a Security Contract? Here's What to Do in the Next 72 Hours

TL;DR

If you signed a home security contract at your home — door-to-door pitch, in-home consultation, kitchen-table closing — federal FTC rules give you 3 business days to cancel for any reason, no questions asked, no fees. The window starts the day after signing. To use it: send written notice by certified mail or hand delivery within 3 business days, refuse equipment installation if it hasn't happened, and document everything. Most people miss the window because they don't realize the clock is ticking. Don't.

Run the contract through the Analyzer first — paste the text or upload the PDF — so you know exactly what you signed before deciding whether to rescind.

The 3-business-day countdown — how it actually works

The clock:

Starts the day after you signed (not the day of)
Counts business days only — Saturdays count, Sundays and federal holidays don't
Ends at midnight on the third business day

Example: sign Tuesday evening at 7pm. The clock starts Wednesday. You have until midnight Friday (Wed + Thu + Fri = 3 business days).

Example 2: sign Friday evening. The clock starts Saturday. Saturday counts (business day). Sunday doesn't. Monday and Tuesday count. You have until midnight Tuesday.

Example 3: sign the day before a federal holiday. That holiday doesn't count. You get an extra day.

What qualifies you for the cooling-off rule

Yes:

Signed at your home (door-to-door, in-home consultation, family member's home where you were the customer)
Contract value $25 or more
Goods/services bought for personal/household use

Maybe (read the contract carefully):

Signed at a temporary location (hotel ballroom, trade show booth)
Signed online but installed by a tech who came to your home

No (federal rule doesn't apply, but contract may have its own rescission clause):

Signed at the brand's office or store
Signed entirely online with no in-home component
Signed for business/commercial use

If you're unsure, default to assuming you have the right and send the cancellation notice within 3 business days. Worst case the seller declines and you negotiate from there. Best case you walk away free.

The exact step-by-step (do this in the next hour if applicable)

Step 1: Find your copy of the contract

The seller is required to give you a copy at signing — including any attached financing agreements. If you don't have one, request it in writing immediately. The 3-day clock keeps running while you wait.

Step 2: Run the contract through the Analyzer

Paste the text or upload the PDF. The Analyzer will:

Identify if there's an equipment-financing agreement separate from the service contract (you'll need to cancel both)
Surface the cancellation address (often hidden in the fine print)
Flag any auto-renewal, ETF, or financing clauses you may want to escape from

This usually takes 2 minutes and tells you exactly what you signed.

Step 3: Decide

You have three options:

Rescind everything within 3 days — if you're not confident, this is the safe default. You can always re-sign later if you decide the deal is right.
Keep the deal — if the Analyzer comes back with a clean A or B grade and the price/value works for you.
Negotiate adjustments — call the rep and ask for the changes you want (rate adjustment, escalator removal, term reduction). Make rescission your fallback if they won't budge.

Step 4: If rescinding, write the notice

The seller is required to give you a "Notice of Cancellation" form at signing. If they did, fill it out, sign it, date it, and send it. If they didn't (or you can't find it), write your own. Plain language is fine:

"I, [your name], hereby cancel my purchase of [brief description] under contract dated [date] with [Brand name]. I am exercising my federal right of cancellation under FTC Cooling-Off Rule. Please refund all monies paid and remove any installed equipment at no cost to me.

Date: [date]

Signature: [your signature]"

Step 5: Send it the right way

Best: Certified mail with return receipt. The postmark proves the date.

Acceptable: Hand delivery to a person at the address on the contract, with a witness, and request a signed acknowledgment.

OK as backup: Email with delivery confirmation, ALSO followed by certified mail. Email alone is risky — some contracts don't recognize email cancellation.

Send to BOTH addresses:

The address on the service contract
The address on the financing contract (if separate)

Step 6: Refuse installation

If the rep is scheduled to come install equipment, call to cancel the appointment. If equipment is already in your home but not yet installed, ask them to pick it up immediately. If equipment is installed, federal rules require the seller to remove it at no cost during the cancellation window.

Step 7: Document everything

Save your certified-mail receipt
Save a copy of the cancellation notice
Save any email confirmation
Photograph any equipment status
Note any phone calls (date, time, person, what was said)

Step 8: Watch for the refund (10-day window)

Federal rules require the seller to refund all money within 10 days of receiving your cancellation notice. If they don't, file a complaint with:

Your state's Attorney General consumer-protection division
The FTC at reportfraud.ftc.gov
Your credit card issuer (chargeback)

What to do if you're past the 3-day window

If you signed more than 3 business days ago, the federal cooling-off rule no longer applies. But you still have options. Read I Already Signed — Escape Paths for the full decision tree, including:

State-specific extended cooling-off rights (some states give 30+ days for certain contracts)
Service-failure dispute paths
Move clauses
Negotiated retention exits

What if the rep is pressuring you to install today

Don't. Ask them to schedule installation 4 business days out. If they refuse, that itself is a strong signal. A legitimate seller has no reason to block your cooling-off window.

If they say "the discount only holds if we install today" — the discount is a pressure tactic, not a real promo. Real promos survive a 4-day delay.

Free tools that pair with this guide:

Contract Analyzer — A–F grade on what you just signed
I Already Signed — Escape Paths — for past the 3-day window
ETF Calculator — what it costs to leave later
Cancellation Letter Template — plug-and-play letter with the right legal phrasing

This is consumer education, not legal advice. SecurityCompass HQ is independent.