
Cancellation of Contracts Made in a Consumer's Home or Place of Work Etc Regulations 2008
Commencement:
The Regulations came into force on 1st October 2008
Scope:
The Regulations are aimed at those who enter into a contract with a consumer at their home or workplace. They also cover contracts made at another individual’s home or on an excursion organised by a trader away from their business premises. These Regulations apply throughout the United Kingdom.
The Regulations replace the 'Cancellation of Contracts Concluded Away from Business Premises Regulations 1987' and extend the law on cooling-off periods and cancellation rights for consumers. The Regulations cover contracts that are made during both solicited and unsolicited visits by traders. The Regulations will apply to all contracts with a total payment of more than £35 and they provide consumers with a minimum seven calendar day cooling off period and cancellation rights. The Regulations also require cancellation rights to be clearly and prominently displayed in any written contract or provided in writing if there is no written contract.
Notice must be given in any contract covered by these Regulations of the right to cancel. Failure to include required information in the notice of the right to cancel will constitute an offence, at level 5 of the standard scale, currently a maximum fine of £5,000. (An example notice for this purpose is provided in the Library area of the Letlink webite – see Letting Statutes and Forms section).
Property management professionals who visit client landlords at their home or other non-business premises, are now legally required to have cancellation wording in their terms of business, and may wish to review their paperwork.
Exclusions:
The exclusions to these Regulations are set out in Schedule 3 and include contracts “for the construction, sale or rental of immovable property or a contract concerning other rights relating to immovable property other than—
(a) a contract for the construction of extensions, patios, conservatories or driveways;
(b) a contract for the supply of goods and their incorporation in immovable property; and
(c) a contract for the repair, refurbishment or improvement of immovable property.”
Whilst tenancy agreements will not be affected, these Regulations may apply to other types of legal agreements such as agency agreements between agent and landlord, or rent guarantees.
Previous Regulations:
These regulations revoke the Cancellation of Contracts Concluded Away from Business Premises Regulations 1987.
Sources for Further Information:
- OPSI website for an explanatory note and the text of the Regulations at http://www.opsi.gov.uk/si/si2008/pdf/uksi_20081816_en.pdf
- The Office of Fair Trading
- Your local Trading Standards Department
This summary is intended to assist landlords and letting agents to understand the effect of the Regulations. It is not an authoritative interpretation - this is a matter for the courts. For more detail, you should refer to the text of the Regulations themselves.



