§ 1695.5. — 1695.5. (Amended by Stats. 1997, Ch. 50, Sec. 2.)

California § 1695.5.

• Jurisdiction: California
• Code CIV: Civil Code - CIV
• Div. 3.: DIVISION 3. OBLIGATIONS
• Title: 5.
• Part 2.: TITLE 5. EXTINCTION OF CONTRACTS
• Ch. 2.5.: CHAPTER 2.5. Home Equity Sales Contracts

Text

(a)
The contract shall contain in immediate proximity to the space reserved for the equity seller’s signature a conspicuous statement in a size equal to at least 12-point bold type, if the contract is printed or in capital letters if the contract is typed, 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.”
The equity purchaser shall accurately enter the date and time of day on which the rescission right ends.
(b) The contract shall be accompanied by a completed form in duplicate, captioned “notice of cancellation” in a size equal to 12-point bold 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 equity seller executes any contract. This form shall be attached to the contract, shall be easily detachable, and shall
contain in type of at least 10-point, if the contract is printed or in capital letters if the contract is typed, the following statement written in the same language as used in the contract:
“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 cancellation notice, or send a telegram
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)
(c)
The equity purchaser shall provide the equity seller with a copy of the contract and the attached notice of cancellation.
(d)
Until the equity purchaser has complied with this section, the
equity seller may cancel the contract.

Legislative History

Amended by Stats. 1997, Ch. 50, Sec. 2. Effective January 1, 1998.