rite to rescind

What is the name of your state (Michigan)?
On the August 11, 2008 I signed a purchase agreement to purchase a motorhome from a wholesale company. On August 12, 2008 I contacted the agent to inform him I was no longer interested in completing the transaction due to my own personal reasons. Is there a Rite to Rescind law in the State of Michigan for the purchase of personal property? Is he entitled to keep my $300 deposit? There was no language in the purchase agreement indicating the deposit was nonrefundable. Please advise!!!

cyncyr said:

On the August 11, 2008 I signed a purchase agreement to purchase a motorhome from a wholesale company. On August 12, 2008 I contacted the agent to inform him I was no longer interested in completing the transaction due to my own personal reasons. Is there a Rite to Rescind law in the State of Michigan for the purchase of personal property?

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Unless the agreement has a cancellation clause in it, there is no inherent statutory right to cancel the agreement without recourse.

Here is a link to the MI statute covering right to cancel sales contracts:
Michigan Legislature

Is he entitled to keep my $300 deposit?

Yes. The 'deposit' was a 'hold' on the vehicle and the seller has the right to retain the deposit if you change your mind.

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I am afraid, cyncyr, that even if Michigan's Consumer Protection laws covered the purchase of your motorhome, which they don't appear to, you would have had only three business days in which to cancel your purchase.

The would-be purchaser of a product, who decides to cancel the purchase, is liable for the reasonable costs of the seller - a maximum amount of 20% of the value of the total obligation or $500, whichever is smaller. If the $300 is less than 20% of the purchase price of the motorhome, to which the contract obligated you, then the seller can reasonably withhold this amount.

In Michigan, there is usually no right to cancel a contract or have your money refunded, unless the signed contract has a cancellation clause in it, or unless there is a money-back guarantee which must be honored, or unless the goods are defective or damaged.

There are a few exceptions which you can review at AG - Attorney General - Michigan's Home Solicitation Sales Act (HSSA), Michigan's Gift Promotion Act, and Home Equity Loans. In addition, the FTC has a federal "Cooling Off Rule" which applies to some purchases. Again, there is a maximum three-day cancellation period that applies to all of these, so your motorhome purchase would not be covered.

Sorry.