Notice of cancellation.

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(1) (a) The contract shall contain, as the last provision before the space reserved for the home owner's signature, a conspicuous statement in at least twelve-point bold-faced type, as follows:

You may cancel this contract for the sale of your house without any penalty or obligation at any time before (Date and time of day). See the attached notice of cancellation form for an explanation of this right.

(b) The equity purchaser shall accurately specify the date and time of day on which the cancellation right ends.

(2) The contract shall be accompanied by duplicate completed forms, captioned "notice of cancellation" in at least nine-point bold-faced type if the contract is printed or in capital letters if the contract is typed, followed by a space in which the equity purchaser shall enter the date on which the home owner executed the contract. Such form shall:

  1. Be attached to the contract;

  2. Be easily detachable; and

  3. Contain the following statement, in at least nine-point type if the contract is printed

or in capital letters if the contract is typed:

NOTICE OF CANCELLATION

(Enter date contract signed). You may cancel this contract for the sale of your house, without any penalty or obligation, at any time before (Enter date and time of day). To cancel this transaction, personally deliver a signed and dated copy of this Notice of Cancellation in the United States mail, postage prepaid, to , (Name of purchaser) at (Street address of purchaser's place of business) NOT LATER THAN

(Enter date and time of day). I hereby cancel this transaction (Date) (Seller's signature)

  1. The equity purchaser shall provide the home owner with a copy of the contract andthe attached notice of cancellation.

  2. Until the equity purchaser has complied with this section, the home owner may cancel the contract.

Source: L. 2006: Entire part added, p. 1340, § 1, effective May 30. L. 2010: IP(2) and IP(2)(c) amended, (HB 10-1133), ch. 350, p. 1617, § 6, effective January 1, 2011.


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