A written contract between a person and a residential contractor for the performance
of repair work on a residential building shall:
(1) include a notice of the person's right to cancel the contract, as described in
Section 13-50-202, that is in substantially the following form:
“Utah Code Section 13-50-202 provides that if, when you signed this contract, the residential contractor knew
or should have known that you intended that all or part of the contract would be paid
with proceeds of a property and casualty insurance policy, you may cancel this contract
within five business days after the day on which you receive written notification
from your property and casualty insurer that your claim, or a portion of your claim,
has been denied”;
(2) state the mailing address where the residential contractor receives written notice;
(3) include a detachable copy of a notice of cancellation that is in substantially
the following form:
“NOTICE OF CANCELLATION
If your property and casualty insurer denies your claim, or a portion of your claim,
to pay for the repair work to be provided under this contract, you may cancel the
contract by mailing or delivering a signed and dated copy of this cancellation notice
or any other written cancellation notice to ______ (name of residential contractor) at ______ (address where residential contractor receives notices) any time within five business
days after the day on which you receive written notice from your property and casualty
insurer that your claim, or a portion of your claim, for coverage of the repair services
described in this contract has been denied. If you cancel, any payments made by you under the contract will be returned within
10 business days after the day on which the residential contractor receives your written
cancellation notice, except that the residential contractor may retain or collect
the reasonable value of any repair work actually performed, if you expressly instructed
the residential contractor to perform the repair work without waiting for notice of
coverage from your property and casualty insurer.
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