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2020 Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 7 - Consumer Protection
Chapter 88 - Deceptive Trade Practices
Subchapter 9 - Unfair Practices Related to Residential Real Estate Repair Contracts
§ 4-88-904. Commencement of work — Cancellation

Universal Citation: AR Code § 4-88-904 (2020)
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  1. (a) A residential contractor in a residential real estate repair contract with an insured shall not commence work until the insured's right to cancel under subsection (b) of this section has expired.

  2. (b) A person who has entered into a residential real estate repair contract with a residential contractor may cancel the residential real estate repair contract within three (3) business days after the insured has received written notice from the insurer in response to an insurance claim filed that all or any part of the claim or residential real estate repair contract is not a covered loss under the insurance policy.

  3. (c)

    1. (1) The insured cancels the residential real estate repair contract by giving written notice of cancellation to the residential contractor in person or by mailing it to the address stated in the residential real estate repair contract.

    2. (2) If the notice of cancellation is given by mail, it is effective upon deposit of the notice in the United States mail, postage prepaid, and properly addressed to the residential contractor.

    3. (3) The notice of cancellation is not required to be in a particular form and is sufficient if it expresses in writing an intention of the insured not to be bound by the residential real estate repair contract.

  4. (d)

    1. (1) Within ten (10) days after cancellation of a residential real estate repair contract, the residential contractor shall tender to the insured any payments, partial payments, or deposits made and any note or other evidence of indebtedness.

    2. (2) If the residential contractor has performed any emergency services, the residential contractor is entitled to the reasonable value of such emergency services.

  5. (e) Any provision in a residential real estate repair contract that requires the payment of a fee for anything except emergency services is not enforceable against the insured that has cancelled a residential real estate repair contract under this section.

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