ASSEMBLY REGULATED PROFESSIONS COMMITTEE

STATEMENT TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 551

STATE OF NEW JERSEY

DATED:  FEBRUARY 10, 2025

      The Assembly Regulated Professions Committee reports favorably an Assembly Committee Substitute for Assembly Bill No. 551.

      This bill permits certain consumers up to five business days to cancel home improvement contracts and up to three business days to cancel certain consumer contracts.

      Currently, all consumers have up to three business days to cancel a home improvement contract for any reason.  Under the bill, a consumer aged 60 years or older or a consumer with an intellectual disability may cancel a home improvement contract for any reason before midnight of the fifth business day after the consumer receives a copy of the signed contract. The bill requires a home improvement contract to contain a conspicuous notice printed in at least 10-point bold-faced type advising consumers aged 60 years or older and consumers with an intellectual disability of their ability to cancel the contract within five business days. Under the bill, all goods delivered to the consumer pursuant to the cancelled home improvement contract are required to be returned within 30 days of the contract’s cancellation.

      In the case of a contract for the sale of goods priced at $500 or more, a consumer aged 60 years or older or a consumer with an intellectual disability may cancel a contract for any reason before midnight of the third business day after the consumer enters into the contract.  The bill requires all moneys paid pursuant to the cancelled contract to be refunded within 30 days of receipt of the notice of cancellation, and all goods delivered pursuant to the contract to be returned within 30 days of the contract’s cancellation.

      The bill clarifies that provisions in the bill that allow certain consumers to cancel a contract for the sale of goods priced at $500 do not apply to contracts related to the sale or purchase of real estate or real estate brokerage services.

      The bill reflects the potential need of certain consumers for more time to review a home improvement or consumer contract.