Home improvement companies frequently conduct business directly at consumers’ homes or through phone sales. If your business model involves personal solicitation outside your fixed location, understanding Florida’s home solicitation sale laws under Chapter 501, Florida Statutes, is critical. Violations can result in severe penalties, including misdemeanor or felony charges.
What Is a Home Solicitation Sale?
Under Florida Statute 501.021, a home solicitation sale involves selling, leasing, or renting consumer goods or services valued over $25 when:
- The sale occurs outside the seller’s fixed business location (e.g., at the buyer’s home), and
- The buyer agrees to the transaction away from the seller’s fixed place of business.
This includes unsolicited phone sales where there is no prior contact before delivery or performance. Notably, fairs, trade shows, and requested services are excluded.
Permit Requirements for Home Solicitation Sales
Mandatory Permits
Florida Statute 501.022 mandates that anyone conducting home solicitation sales must obtain a valid permit from the clerk of the circuit court in the county of operation. The application must include identification, fingerprints, and a criminal background check.
Exceptions
Some individuals are exempt from this requirement, including:
- Licensed professionals under Chapters 475 and 497.
- Sales made by invitation.
- Catalog or future delivery sales.
- Certain minors under adult supervision.
Buyer Rights and Your Responsibilities
Right to Cancel
Per Statute 501.025, consumers can cancel any home solicitation sale until midnight of the third business day after signing. You must inform buyers of this right clearly in writing.
Required Documentation
Statute 501.031 requires that sellers provide a written agreement showing the transaction date and a conspicuous notice of cancellation rights under the heading: “BUYER’S RIGHT TO CANCEL.”
Refund Obligations
If a sale is canceled, you must refund any payments and return any promissory notes within 10 days, as outlined in Statute 501.041. Failing to do so gives the buyer a lien on the goods.
Prohibited Practices and Enforcement
Misrepresentations
Statute 501.047 prohibits deceptive practices, such as:
- Misrepresenting terms or affiliations.
- Claiming the agreement is noncancelable.
- Making false claims about contests or job-related limitations.
Penalties
Violations of these statutes can result in first-degree misdemeanors or, upon repeat offenses, third-degree felonies under Statute 501.055.
How a Lawyer Can Help Your Business Stay Compliant
An attorney experienced in consumer protection law can help your business:
- Navigate permit requirements.
- Draft legally compliant contracts.
- Avoid prohibited practices.
- Defend against enforcement actions.
Don’t risk legal trouble. Compliance isn’t just about avoiding penalties—it’s about building consumer trust.
Frequently Asked Questions About Home Solicitation Sales
Do I need a permit if I only sell over the phone? Only if there is contact before delivery. Purely unsolicited phone sales without prior contact are exempt.
Are trade show sales considered home solicitation sales? No. Sales at fairs or commercial exhibits are excluded from these rules.
What if the buyer doesn’t return the goods after canceling? You may not collect payment unless you’ve complied with all refund requirements. The buyer has a lien until then.
What if my employee fails to carry their permit? They must carry and present their permit during solicitations. Failure to do so is a legal violation.
Conclusion
Home improvement business owners must fully understand and comply with Florida’s home solicitation sale statutes to avoid serious legal consequences. From obtaining the right permits to honoring buyer cancellation rights, every step matters.
If you need guidance on complying with home solicitation sale laws, contact Klein Law Group today or visit www.kleinattorneys.com to schedule a consultation
