KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Understanding the 3 day notice of cancellation February 14, 2025 ******************** Understanding the 3 day notice of cancellation ******************** What is the 3 day notice of cancellation; when and how is it to be presented to customers? The issue becomes even more confusing when you present your contracts for electronic signature or when you mail the contract to the customer for signature [if anyone still does that]. First some basics. The 3 day notice of cancellation is often referred to as the Cooling Off Period. It allows the customer 3 days from execution of the contract to cancel with impunity. Contractors, and that includes you, are not supposed to begin performance of the contract until the customer has had 3 days to reconsider and cancel. The penalty for ignoring the 3 day cooling off period is fairly severe; the customer can require you to remove whatever you’ve installed and restore the premises to pre-installation condition. The customer can refuse to proceed with the contract by exercising the rescission right. If you stop work, demand payment for the work you did, even if completed, and you try to sue to recover for your work, you should not win. The 3 day cancellation right is for consumers only, and only for household, residential, work. It will not apply to commercial customers. The 3 day notice is required by Federal Law and it’s also required in most if not all states. Not only that, you are required to use the precise statutory language, layout and font size required by the statute. Don’t confuse the Notice of Cancellation that is included in your consumer contract with the actually Cancellation Form. The Notice of Cancellation is supposed to be placed directly above the where the customer is to sign the agreement. The actual Cancellation Form [also in required form] is a separate paper or page. It is designed to be signed by the customer who wants to rescind and sent to you. The 3 day notice of cancellation laws have struggled to keep up with technology. New laws now permit the customer to notify you in most any manner in which the contract was executed. So if it’s in person in the house [or elsewhere other than your retail place of business – such as Home Depot] you will leave the customer with a Cancellation Form that can be signed and delivered to you via mail, email or fax. The notice will specify how it’s to be delivered, though you will find that any method will be acceptable, especially if you get the cancellation form. When the contract is signed electronically you still give a copy of the Cancellation Form and the customer will be able to cancel electronically. If you mail the contract to the customer, mail the Cancellation Form too. Once that contract is fully executed [you can sign in advance before sending] the customer will have 3 days from when the customer signs the contract and delivers it back to you to use the Cancellation Form to cancel, even if the customer sat with the contract for a long time before deciding to sign and send it back to you. The right to rescind can be exercised at any time until that Cancellation Form is provided with a fully executed contract. While we don’t see many cases where this comes up as an issue when the relationship has been going on for some time, service being provided and payments being made, but it’s theoretically possible. For that reason another very good reason exists for properly complying with the 3 day notice of cancellation, potential buyers of your residential accounts may refuse to bid on those accounts if you have routinely failed to comply with the 3 day right to rescission laws. You also may end up the target of an aggressive Attorney Generally who will want you to notify your residential customers that they have a right to cancel and get their money back. That prospect, no matter how remote, should be enough to encourage your compliance. When you purchase a K&K residential contract we properly place the Cancellation Notice and we provide the proper Cancellation Form; use these forms as we have provided them. *************************** Featured listings of alarm companies or accounts for sale ************************** If you are ready to sell or buy K&K is here to represent your legal interests in the transaction. As leading experts in the alarm/security/fire industry there is no learning curve and you can rely on our guidance throughout the process. Sellers can also look to K&K to broker the accounts or company for sale. The broker fee is one month net RMR, which is typically half of what the traditional brokers in the industry charge. If interested in listing with K&K contract Ken Kirschenbaum, Esq at 5165 747 6700 x 301 or Ken@Kirschenbaumesq.com. Active listings are found on The Alarm Exchange in the Merger and Acquisition Category. For those of you looking to acquire accounts here are the current listings available. If interested contact Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com **** NEW For Sale: Queens, NY. Approx. 100 security alarm accounts, divided evenly between residential and commercial customers, with aggregate of approximately $17,000 monitoring net RMR. Accounts located in 5 boroughs of NYC and Nassau County. Equipment: Hirsch Electronics, Bosch Cctv, Avigilon- Access / Cctv, Speco Cctv, Honeywell – Access Control / Panic / Intrusion, Resideo Panic / Intrusion; panels: Intrusion / Panic: Vista 20, Vista 40, Vista 128, Proa7; operation software: Hirsch Velocity, Microkey Central Station Software, Avigilon- Various, Speco Blue. Service calls “per call”. For more information contact our attorney Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com. K&K NDA will be required for more info and to contact Seller direct.
NEW Looking to purchase residential alarm accounts: East coast. We are ready, willing and able to purchase with minimum nonsense and delay; top multiples; contact Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com
NEW For Sale: Houston, Texas 350 alarm monitoring accounts; 78% residential; 22% commercial; 4 commercial fire alarms. Monitoring Net RMR $9.000; Fire Alarm Inspection and Service RMR $333 for commercial fire. Most accounts cellular, M2M cellular, some on alarm.com. If interest contact our attorney Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com; K&K NDA will be required for more information.
NEW For Sale: Riverside, CA: 171 alarm monitoring accounts; 90 alarm.com; 81 CMS; 43% residential; 57% commercial. Monitoring Net RMR $11.000; written contracts; Alarm.com, Uniview and Ubiquiti, 2GIG panels and Honeywell Vista; Quickbooks and alarm.com software; 3 techs; service vehicles. If interested contact our attorney Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com; K&K NDA will be required for more information.
For Sale: Southern California: commercial Net RMR $17,000.00; approximately 80 customers with 324 locations. No fire. Concentrated in Los Angeles, Riverside, San Bernardino, and San Diego counties. Third party vendors: Brivo, Eagle Eye, Cradlepoint. Equipment: Genetec, Brivo, Eagle Eye, Ocularius, DMP, Dell, Axis. Monitoring center: NMC. Most under K&K contracts. Panels: DMP. Significant EBITDA. More information requires a K&K NDA. Contact Ken Kirschenbaum at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com
For Sale: Nassau County, New York. approx 221 alarm accounts. residential 190; commercial security and fire 31; RMR approx $13,230.00 [res $8844; comm security and fire $2118; Inspection RMR $2268; Resideo / Honeywell; some Radionics. Vista 20P / Vista 128BPT. Most accounts on updated K&K contracts. Contact Ken Kirschenbaum,Esq at 516 747 6700 x 301 or Ken@Kirschenbaumesq.com. K&K NDA will be required for more information. For Sale. Phoenix area, Arizona., 181 alarm monitoring accounts [115 res; 66 commercial; commercial fire 5]. Net RMR $4700.00; DSC panel and equipment; Microkey software. Older contracts for most part. K&K NDA required for more information. Contact Ken Kirschenbaum,Esq at ken@kirschenbaumesq.com or 516 747 6700 x 301.
For Sale: Poughkeepsie, NY. Number of accounts 1580; Residential 30% or 471 accounts; Commercial 70% or 1109 accounts, Monitoring NET RMR approximately $50,000; RMR for Inspections $9,798, RMR for Service $17,345; Central Station Safeco and Affiliated Monitoring; Central Station monthly $15,414; Number of techs 7; Accounts are concentrated in Dutchess County NY; Equipment Honeywell Firelite Hikvision Unifi CDVIC; Panels Honeywell Firelite Silent Knight; Software Compass Silent Knight Software Suite HSS Strium Finder Napco Quick Loader. Contact Ken Kirschenbaum,Esq at 516 747 6700 301 or Ken@Kirschenbaumesq.com if serious buyer ready to close within 30 days.
For Sale: 15 Deep Sentinel accts; north of San Diego, Ca [one in La and one in Bay area]. RMR approx $5100; monitoring charges approx $1600 RMR. One year guarantee; 31 X; 20% Hold Back. Contact Ken Kirschenbaum for further info. 516 747 6700 x 301 or Ken@Kirschenbaumesq.com
For Sale: Shrevesport, Louisiana over 1300 Alarm accounts; residential and commercial, over 45K RMR monitoring accounts; Kirschenbaum Contracts. mid-sized turn-key operation fully staffed with RMR and growth. Contact our attorney Ken Kirschenbaum,Esq for details. Ken@Kirschenbaumesq.com or 516 747 6700 x 301 ***************************** STANDARD FORMS Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
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