reglab/statecodes huggingface dataset:
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2 - Rescission › Section 1689.11.

1689.11. (a) Except as provided in subdivision (c) of Section 1689.10, within 20 days after a home solicitation contract or offer has been canceled, the buyer, upon demand, must tender to the seller any goods delivered by the seller pursuant to the sale or offer, but he is not obligated to tender at any place other than his own address. If the seller fails to demand possession of goods within 20 days after cancellation, the goods become the property of the buyer without obligation to pay for them.
(b) The buyer has a duty to take reasonable care of the goods in his possession both prior to cancellation and during the 20-day period following. During the 20-day period after cancellation, except for the buyer’s duty of care, the goods are at the seller’s risk.
(c) If the seller has performed any services pursuant to a home solicitation contract or offer prior to its cancellation, the seller is entitled to no compensation. If the seller’s services result in the alteration of property of the buyer, the seller shall restore the property to substantially as good condition as it was at the time the services were rendered.
(Amended by Stats. 1973, Ch. 554.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2 - Rescission › Section 1689.12.

1689.12. Any waiver or confession of judgment of the provisions of Sections 1689.5 to 1689.11, inclusive, shall be deemed contrary to public policy and shall be void and unenforceable.
(Amended by Stats. 1973, Ch. 554.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2 - Rescission › Section 1689.13.

1689.13. Sections 1689.5, 1689.6, 1689.7, 1689.10, 1689.12, and 1689.14 do not apply to a contract that meets all of the following requirements:
(a) The contract is initiated by the buyer or the buyer’s agent or insurance representative.
(b) The contract is executed in connection with making of emergency or immediately necessary repairs that are necessary for the immediate protection of persons or real or personal property.
(c) (1) The buyer gives the seller a separate statement that is dated and signed that describes the situation that requires immediate remedy, and expressly acknowledges and waives the right to cancel the sale within three, five, or seven business days, whichever applies.
(2) The waiver of the five-day right to cancel added by the act that amended paragraph (1) shall apply to contracts entered into, or offers to purchase conveyed, on or after January 1, 2021.
(Amended by Stats. 2020, Ch. 158, Sec. 7. (AB 2471) Effective January 1, 2021.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2 - Rescission › Section 1689.14.

1689.14. (a) Any home solicitation contract or offer for the repair or restoration of residential premises signed by the buyer on or after the date on which a disaster causes damage to the residential premises, but not later than midnight of the seventh business day after this date, shall be void, unless the buyer or his or her agent or insurance representative solicited the contract or offer at the appropriate trade premises of the seller. Any contract covered by this subdivision shall not be void if solicited by the buyer or his or her agent or insurance representative regardless of where the contract is made. For purposes of this section, buyer solicitation includes a telephone call from the buyer to the appropriate trade premises of the seller whether or not the call is in response to a prior home solicitation.
(b) As used in this section and Section 1689.6, “disaster” means an earthquake, flood, fire, hurricane, riot, storm, tidal wave, or other similar sudden or catastrophic occurrence for which a state of emergency has been declared by the President of the United States or the Governor or for which a local emergency has been declared by the executive officer or governing body of any city, county, or city and county.
(Amended by Stats. 1995, Ch. 123, Sec. 1. Effective July 18, 1995.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2 - Rescission › Section 1689.15.

1689.15. Notwithstanding any other provision of law, a contractor who is duly licensed pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code may commence work on a service and repair project as soon as the buyer receives a signed and dated copy of a service and repair contract that meets all of the contract requirements specified in Section 7159.10 of the Business and Professions Code. The buyer retains any right of cancellation applicable to home solicitations under Sections 1689.5 to 1689.14, inclusive, until such time as the buyer receives a signed and dated copy of a service and repair contract that meets all of the contract requirements specified in Section 7159.10 of the Business and Professions Code and the licensee in fact commences that project, at which time any cancellation rights provided in Sections 1689.5 to 1689.14, inclusive, are extinguished by operation of law.
(Amended by Stats. 2005, Ch. 385, Sec. 13. Effective January 1, 2006.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2 - Rescission › Section 1689.20.

1689.20. (a) (1) In addition to any other right to revoke an offer, the buyer has the right to cancel a seminar sales solicitation contract or offer until midnight of the third business day, or until midnight of the fifth business day if the buyer is a senior citizen, after the day on which the buyer signs an agreement or offer to purchase which complies with Section 1689.21.
(2) The five-day right to cancel added by the act that amended paragraph (1) shall apply to contracts entered into, or offers to purchase conveyed, on or after January 1, 2021.
(b) Cancellation occurs when the buyer gives written notice of cancellation to the seller at the address specified in the agreement or offer.
(c) Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid.
(d) Notice of cancellation given by the buyer need not take the particular form as provided with the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the seminar sales solicitation contract or offer.
(Amended by Stats. 2020, Ch. 158, Sec. 8. (AB 2471) Effective January 1, 2021.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2 - Rescission › Section 1689.22.

1689.22. (a) Except as provided in Sections 1689.20 and 1689.21, within 10 days after a seminar sales solicitation contract or offer has been cancelled, the seller must tender to the buyer any payments made by the buyer and any note or other evidence of indebtedness.
(b) If the downpayment includes goods traded in, the goods must be tendered in substantially as good condition as when received.
(c) Until the seller has complied with the obligations imposed by Sections 1689.20 and 1689.21, the buyer may retain possession of goods delivered to him or her by the seller and has a lien on the goods for any recovery to which he or she is entitled.
(Added by Stats. 1989, Ch. 724, Sec. 3.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2 - Rescission › Section 1689.23.

1689.23. (a) Except as provided in subdivision (c) of Section 1689.22, within 20 days after a seminar sales solicitation contract or offer has been canceled, the buyer, upon demand, must tender to the seller any goods delivered by the seller pursuant to the sale or offer, but he or she is not obligated to tender at any place other than his or her own address. If the seller fails to demand possession of goods within 20 days after cancellation, the goods become the property of the buyer without obligation to pay for them.
(b) The buyer has a duty to take reasonable care of the goods in his or her possession, both prior to cancellation and during the 20-day period following. During the 20-day period after cancellation, except for the buyer’s duty of care, the goods are at the seller’s risk.
(c) If the seller has performed any services pursuant to a seminar sales solicitation contract or offer prior to its cancellation, the seller is entitled to no compensation. If the seller’s services result in the alteration of property of the buyer, the seller shall restore the property to substantially as good condition as it was at the time the services were rendered.
(Added by Stats. 1989, Ch. 724, Sec. 4.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2 - Rescission › Section 1690.

1690. A stipulation that errors of description shall not avoid a contract, or shall be the subject of compensation, or both, does not take away the right of rescission for fraud, nor for mistake, where such mistake is in a matter essential to the inducement of the contract, and is not capable of exact and entire compensation.
(Enacted 1872.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2 - Rescission › Section 1691.

1691. Subject to Section 1693, to effect a rescission a party to the contract must, promptly upon discovering the facts which entitle him to rescind if he is free from duress, menace, undue influence or disability and is aware of his right to rescind:
(a) Give notice of rescission to the party as to whom he rescinds; and
(b) Restore to the other party everything of value which he has received from him under the contract or offer to restore the same upon condition that the other party do likewise, unless the latter is unable or positively refuses to do so.
When notice of rescission has not otherwise been given or an offer to restore the benefits received under the contract has not otherwise been made, the service of a pleading in an action or proceeding that seeks relief based on rescission shall be deemed to be such notice or offer or both.
(Amended by Stats. 1961, Ch. 589.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2 - Rescission › Section 1692.

1692. When a contract has been rescinded in whole or in part, any party to the contract may seek relief based upon such rescission by (a) bringing an action to recover any money or thing owing to him by any other party to the contract as a consequence of such rescission or for any other relief to which he may be entitled under the circumstances or (b) asserting such rescission by way of defense or cross-complaint.
If in an action or proceeding a party seeks relief based upon rescission and the court determines that the contract has not been rescinded, the court may grant any party to the action any other relief to which he may be entitled under the circumstances.
A claim for damages is not inconsistent with a claim for relief based upon rescission. The aggrieved party shall be awarded complete relief, including restitution of benefits, if any, conferred by him as a result of the transaction and any consequential damages to which he is entitled; but such relief shall not include duplicate or inconsistent items of recovery.
If in an action or proceeding a party seeks relief based upon rescission, the court may require the party to whom such relief is granted to make any compensation to the other which justice may require and may otherwise in its judgment adjust the equities between the parties.
(Amended by Stats. 1971, Ch. 244.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2 - Rescission › Section 1693.

1693. When relief based upon rescission is claimed in an action or proceeding, such relief shall not be denied because of delay in giving notice of rescission unless such delay has been substantially prejudicial to the other party.
A party who has received benefits by reason of a contract that is subject to rescission and who in an action or proceeding seeks relief based upon rescission shall not be denied relief because of a delay in restoring or in tendering restoration of such benefits before judgment unless such delay has been substantially prejudicial to the other party; but the court may make a tender of restoration a condition of its judgment.
(Added by Stats. 1961, Ch. 589.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.1 - Dating Service Contracts › Section 1694.

1694. (a) As used in this chapter, a dating service contract is any contract with any organization that offers dating, matrimonial, or social referral services by any of the following means:
(1) An exchange of names, telephone numbers, addresses, and statistics.
(2) A photograph or video selection process.
(3) Personal introductions provided by the organization at its place of business.
(4) A social environment provided by the organization intended primarily as an alternative to other singles’ bars or club-type environments.
(b) As used in this chapter, an “online dating service” means any person or organization engaged in the business of offering dating, matrimonial, or social referral services online, where the services are offered primarily online, such as by means of an Internet Web site or a mobile application.
(Amended by Stats. 2017, Ch. 578, Sec. 1. (AB 314) Effective January 1, 2018.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.1 - Dating Service Contracts › Section 1694.1.

1694.1. (a) In addition to any other right to revoke an offer, the buyer has the right to cancel a dating service contract or offer, until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services.
(b) (1) Cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
(2) In the case of a dating service contract with an online dating service, cancellation occurs when the buyer gives written notice of cancellation by email to an email address provided by the seller. Additional electronic means of cancellation may be provided by the agreement or offer.
(c) Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid.
(d) Notice of cancellation given by the buyer need not take the particular form as provided in the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the dating service contract.
(e) All moneys paid pursuant to any contract for dating services shall be refunded within 10 days of receipt of the notice of cancellation.
(f) The buyer may notify the dating service of his or her intent to cancel the contract within the three-day period specified in this section and stop the processing of a credit card voucher or check by telephone notification to the dating service. However, this does not negate the obligation of the buyer to cancel the contract by mail, email or other electronic means, telegram, or delivery as required pursuant to this section.
(Amended by Stats. 2017, Ch. 578, Sec. 2. (AB 314) Effective January 1, 2018.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.1 - Dating Service Contracts › Section 1694.3.

1694.3. (a) Every dating service contract shall contain language providing that:
(1) If by reason of death or disability the buyer is unable to receive all services for which the buyer has contracted, the buyer and the buyer’s estate may elect to be relieved of the obligation to make payments for services other than those received before death or the onset of disability, except as provided in paragraph (4).
(2) If the buyer has prepaid any amount for services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer or his or her representative.
(3) “Disability” means a condition which precludes the buyer from physically using the services specified in the contract during the term of disability and the condition is verified in writing by a physician designated and remunerated by the buyer. The written verification of the physician shall be presented to the seller.
(4) If the physician determines that the duration of the disability will be less than six months, the seller may extend the term of the contract for a period of six months at no additional charge to the buyer in lieu of cancellation.
(b) (1) If the buyer relocates his or her primary residence further than 50 miles from the dating service office and is unable to transfer the contract to a comparable facility, the buyer may elect to be relieved of the obligation to make payment for services other than those received prior to that relocation, and if the buyer has prepaid any amount for dating services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer. A buyer who elects to be relieved of further obligation pursuant to this subdivision may be charged a predetermined fee not to exceed one hundred dollars ($100) or, if more than half the life of the contract has expired, a predetermined fee not to exceed fifty dollars ($50).
(2) Paragraph (1) shall not apply to online dating services that are generally available to users on a regional, national, or global basis.
(c) In addition to any other requirements, online dating services shall also maintain both of the following features:
(1) A reference or link to dating safety awareness information that includes, at a minimum, a list or descriptions of safety measures reasonably aimed at increasing awareness of safer dating practices.
(2) A means to report issues or concerns relating to the behavior of other users of the online dating service arising out of their use of the service.
(Amended by Stats. 2017, Ch. 578, Sec. 4. (AB 314) Effective January 1, 2018.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.1 - Dating Service Contracts › Section 1694.4.

1694.4. (a) Any contract for dating services which does not comply with this chapter is void and unenforceable.
(b) Any contract for dating services entered into under willful and fraudulent or misleading information or advertisements of the seller is void and unenforceable.
(c) Any buyer injured by a violation of this chapter may bring an action for the recovery of damages in a court of competent jurisdiction. Judgment may be entered for three times the amount at which the actual damages are assessed. Reasonable attorney fees may be awarded to the prevailing party.
(d) Notwithstanding the provisions of any contract to the contrary, whenever the contract price is payable in installments and the buyer is relieved from making further payments or entitled to a refund under this chapter, the buyer shall be entitled to receive a refund or refund credit of that portion of the cash price as is allocable to the services not actually received by the buyer. The refund of any finance charge shall be computed according to the “sum of the balance method,” also known as the “Rule of 78.”
(e) Any waiver by the buyer of this chapter is void and unenforceable.
(Added by Stats. 1989, Ch. 138, Sec. 1.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.2 - Weight Loss Contracts › Section 1694.5.

1694.5. (a) As used in this chapter, a weight loss contract is a contract with any weight loss program or center that offers any of the following:
(1) Instruction, counseling, supervision, or assistance in weight reduction, body shaping, diet, and eating habits, by persons who are not licensed health care professionals.
(2) Use of facilities of a weight loss center for any of the purposes specified in paragraph (1).
(3) Membership in any group, club, association, or organization formed for any of the purposes specified in paragraph (1).
(4) Prepackaged, or premeasured “diet foods” provided by the weight loss program or center.
(b) This chapter does not apply to any contract for health studio services as defined in Section 1812.81.
(Added by Stats. 1989, Ch. 138, Sec. 2.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.2 - Weight Loss Contracts › Section 1694.6.

1694.6. (a) In addition to any other right to revoke an offer, the buyer has the right to cancel a weight loss contract or offer until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services.
(b) Cancellation occurs when the buyer gives written notice of cancellation by mail, telegram, or delivery to the seller at the address specified in the agreement or offer.
(c) Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid.
(d) Notice of cancellation given by the buyer need not take the particular form as provided in the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the weight loss contract.
(e) All moneys paid pursuant to any weight loss contract shall be refunded within 10 days of receipt of the notice of cancellation.
(f) The buyer may notify the weight loss program of his or her intent to cancel the contract within the three-day period specified in this section and stop the processing of a credit card voucher or check by telephone notification to the weight loss program. However, this does not negate the obligation of the buyer to cancel the contract by mail, telegram, or delivery as required pursuant to this section.
(Amended by Stats. 1993, Ch. 359, Sec. 3. Effective January 1, 1994.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.2 - Weight Loss Contracts › Section 1694.7.

1694.7. (a) A weight loss contract shall be in writing. A copy of the contract shall be provided to the buyer at the time he or she signs the contract.
(b) Every weight loss contract shall contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, as follows:
“You, the buyer, may cancel this agreement, without any penalty or obligation, at any time prior to midnight of the original contract seller’s third business day following the date of this contract, excluding Sundays and holidays. To cancel this agreement, mail or deliver a signed and dated notice, or send a telegram which states that you, the buyer, are canceling this agreement, or words of similar effect. This notice shall be sent to:
_____ (Name of the business that sold you the contract) _____
_____ (Address of the business that sold you the contract) _____ .”
(c) The weight loss contract shall contain on the first page, in a type size no smaller than that generally used in the body of the document, the name and address of the weight loss program operator to which the notice of cancellation is to be mailed; and the date the buyer signed the contract.
(d) No weight loss contract shall require payments or financing by the buyer over a period in excess of two years from the date the contract is entered into, nor shall the term of any such contract be measured by the life of the buyer. The services to be rendered to the buyer under the contract shall not extend for more than three years after the date the contract is entered into.
(e) If a weight loss contract is not in compliance with this chapter, the buyer may, at any time, cancel the contract.
(Amended by Stats. 1993, Ch. 359, Sec. 4. Effective January 1, 1994.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.2 - Weight Loss Contracts › Section 1694.8.

1694.8. Every weight loss contract shall contain language providing that:
(a) If by reason of death or disability the buyer is unable to receive all services for which the buyer has contracted, the buyer and the buyer’s estate may elect to be relieved of the obligation to make payments for services other than those received before death or the onset of disability, except as provided in paragraph (3).
(1) If the buyer has prepaid any amount for services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer or his or her representative.
(2) “Disability” means a condition which precludes the buyer from physically using the services specified in the contract during the term of disability and the condition is verified in writing by a physician designated and remunerated by the buyer. The written verification of the physician shall be presented to the seller.
(3) If the physician determines that the duration of the disability will be less than six months, the seller may extend the term of the contract for a period of six months at no additional charge to the buyer in lieu of cancellation.
(b) If the buyer relocates his or her primary residence further than 50 miles from the weight loss center and is unable to transfer the contract to a comparable facility, the buyer may elect to be relieved of the obligation to make payment for services other than those received prior to that relocation, and if the buyer has prepaid any amount for weight loss services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer. A buyer who elects to be relieved of further obligation pursuant to this subdivision may be charged a predetermined fee not to exceed one hundred dollars ($100) or, if more than half the life of the contract has expired, a predetermined fee not to exceed fifty dollars ($50).
(Added by Stats. 1989, Ch. 138, Sec. 2.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.2 - Weight Loss Contracts › Section 1694.9.

1694.9. (a) Any contract for weight loss services which does not comply with this chapter is void and unenforceable.
(b) Any contract for weight loss services entered into under willful and fraudulent or misleading information or advertisements of the seller is void and unenforceable.
(c) Any buyer injured by a violation of this chapter may bring an action for the recovery of damages in a court of competent jurisdiction. Judgment may be entered for three times the amount at which the actual damages are assessed if the violation is willful. Reasonable attorney fees may be awarded to the prevailing party.
(d) Notwithstanding the provisions of any contract to the contrary, whenever the contract price is payable in installments and the buyer is relieved from making further payments or entitled to a refund under this chapter, the buyer shall be entitled to receive a refund or refund credit of that portion of the cash price as is allocable to the services not actually received by the buyer. The refund of any finance charge shall be computed according to the “sum of the balance method,” also known as the “Rule of 78.”
(e) Any waiver by the buyer of this chapter is void and unenforceable.
(Added by Stats. 1989, Ch. 138, Sec. 2.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.

1695. (a) The Legislature finds and declares that homeowners whose residences are in foreclosure have been subjected to fraud, deception, and unfair dealing by home equity purchasers. The recent rapid escalation of home values, particularly in the urban areas, has resulted in a significant increase in home equities which are usually the greatest financial asset held by the homeowners of this state. During the time period between the commencement of foreclosure proceedings and the scheduled foreclosure sale date, homeowners in financial distress, especially the poor, elderly, and financially unsophisticated, are vulnerable to the importunities of equity purchasers who induce homeowners to sell their homes for a small fraction of their fair market values through the use of schemes which often involve oral and written misrepresentations, deceit, intimidation, and other unreasonable commercial practices.
(b) The Legislature declares that it is the express policy of the state to preserve and guard the precious asset of home equity, and the social as well as the economic value of homeownership.
(c) The Legislature further finds that equity purchasers have a significant impact upon the economy and well-being of this state and its local communities, and therefore the provisions of this chapter are necessary to promote the public welfare.
(d) The intent and purposes of this chapter are the following:
(1) To provide each homeowner with information necessary to make an informed and intelligent decision regarding the sale of his or her home to an equity purchaser; to require that the sales agreement be expressed in writing; to safeguard the public against deceit and financial hardship; to insure, foster, and encourage fair dealing in the sale and purchase of homes in foreclosure; to prohibit representations that tend to mislead; to prohibit or restrict unfair contract terms; to afford homeowners a reasonable and meaningful opportunity to rescind sales to equity purchasers; and to preserve and protect home equities for the homeowners of this state.
(2) This chapter shall be liberally construed to effectuate this intent and to achieve these purposes.
(Added by Stats. 1979, Ch. 1029.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.1.

1695.1. The following definitions apply to this chapter:
(a) “Equity purchaser” means any person who acquires title to any residence in foreclosure, except a person who acquires such title as follows:
(1) For the purpose of using such property as a personal residence.
(2) By a deed in lieu of foreclosure of any voluntary lien or encumbrance of record.
(3) By a deed from a trustee acting under the power of sale contained in a deed of trust or mortgage at a foreclosure sale conducted pursuant to Article 1 (commencing with Section 2920) of Chapter 2 of Title 14 of Part 4 of Division 3.
(4) At any sale of property authorized by statute.
(5) By order or judgment of any court.
(6) From a spouse, blood relative, or blood relative of a spouse.
(b) “Residence in foreclosure” and “residential real property in foreclosure” means residential real property consisting of one- to four-family dwelling units, one of which the owner occupies as his or her principal place of residence, and against which there is an outstanding notice of default, recorded pursuant to Article 1 (commencing with Section 2920) of Chapter 2 of Title 14 of Part 4 of Division 3.
(c) “Equity seller” means any seller of a residence in foreclosure.
(d) “Business day” means any calendar day except Sunday, or the following business holidays: New Year’s Day, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans’ Day, Thanksgiving Day, and Christmas Day.
(e) “Contract” means any offer or any contract, agreement, or arrangement, or any term thereof, between an equity purchaser and equity seller incident to the sale of a residence in foreclosure.
(f) “Property owner” means the record title owner of the residential real property in foreclosure at the time the notice of default was recorded.
(Amended by Stats. 1980, Ch. 423, Sec. 4. Effective July 11, 1980.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.2.

1695.2. Every contract shall be written in letters of a size equal to 10-point bold type, in the same language principally used by the equity purchaser and equity seller to negotiate the sale of the residence in foreclosure and shall be fully completed and signed and dated by the equity seller and equity purchaser prior to the execution of any instrument of conveyance of the residence in foreclosure.
(Added by Stats. 1979, Ch. 1029.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.3.

1695.3. Every contract shall contain the entire agreement of the parties and shall include the following terms:
(a) The name, business address, and the telephone number of the equity purchaser.
(b) The address of the residence in foreclosure.
(c) The total consideration to be given by the equity purchaser in connection with or incident to the sale.
(d) A complete description of the terms of payment or other consideration including, but not limited to, any services of any nature which the equity purchaser represents he will perform for the equity seller before or after the sale.
(e) The time at which possession is to be transferred to the equity purchaser.
(f) The terms of any rental agreement.
(g) A notice of cancellation as provided in subdivision (b) of Section 1695.5.
(h) The following notice in at least 14-point boldface type, if the contract is printed or in capital letters if the contract is typed, and completed with the name of the equity purchaser, immediately above the statement required by Section 1695.5(a):
“NOTICE REQUIRED BY CALIFORNIA LAW
Until your right to cancel this contract has ended,
_____ (Name) _____
or anyone working for   _____ (Name) _____
CANNOT ask you to sign or have you sign any deed or any other document.”
The contract required by this section shall survive delivery of any instrument of conveyance of the residence in foreclosure, and shall have no effect on persons other than the parties to the contract.
(Amended by Stats. 1980, Ch. 423, Sec. 5. Effective July 11, 1980.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.4.

1695.4. (a) In addition to any other right of rescission, the equity seller has the right to cancel any contract with an equity purchaser until midnight of the fifth business day following the day on which the equity seller signs a contract that complies with this chapter or until 8 a.m. on the day scheduled for the sale of the property pursuant to a power of sale conferred in a deed of trust, whichever occurs first.
(b) Cancellation occurs when the equity seller personally delivers written notice of cancellation to the address specified in the contract or sends a telegram indicating cancellation to that address.
(c) A notice of cancellation given by the equity seller need not take the particular form as provided with the contract and, however expressed, is effective if it indicates the intention of the equity seller not to be bound by the contract.
(Amended by Stats. 1997, Ch. 50, Sec. 1. Effective January 1, 1998.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.5.

1695.5. (a) The contract shall contain in immediate proximity to the space reserved for the equity seller’s signature a conspicuous statement in a size equal to at least 12-point bold type, if the contract is printed or in capital letters if the contract is typed, as follows:
“You may cancel this contract for the sale of your house with­out any penalty or obligation at any time before
_____ (Date and time of day) _____ .
See the attached notice of cancellation form for an explanation of this right.”
The equity purchaser shall accurately enter the date and time of day on which the rescission right ends.
(b) The contract shall be accompanied by a completed form in duplicate, captioned “notice of cancellation” in a size equal to 12-point bold type, if the contract is printed or in capital letters if the contract is typed, followed by a space in which the equity purchaser shall enter the date on which the equity seller executes any contract. This form shall be attached to the contract, shall be easily detachable, and shall contain in type of at least 10-point, if the contract is printed or in capital letters if the contract is typed, the following statement written in the same language as used in the contract:
“NOTICE OF CANCELLATION
_____ (Enter date contract signed) _____
You may cancel this contract for the sale of your house, without any penalty or obligation, at any time before
_____ (Enter date and time of day) _____ .
To cancel this transaction, personally deliver a signed and dated copy of this cancellation notice, or send a telegram
to  _____ (Name of purchaser) _____ ,
at  _____ (Street address of purchaser’s place of business) _____
NOT LATER THAN (Enter date and time of day) .
I hereby cancel this transaction _____ (Date) _____ .
(Seller’s signature)”
(c) The equity purchaser shall provide the equity seller with a copy of the contract and the attached notice of cancellation.
(d) Until the equity purchaser has complied with this section, the equity seller may cancel the contract.
(Amended by Stats. 1997, Ch. 50, Sec. 2. Effective January 1, 1998.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.6.

1695.6. (a) The contract as required by Sections 1695.2, 1695.3, and 1695.5, shall be provided and completed in conformity with those sections by the equity purchaser.
(b) Until the time within which the equity seller may cancel the transaction has fully elapsed, the equity purchaser shall not do any of the following:
(1) Accept from any equity seller an execution of, or induce any equity seller to execute, any instrument of conveyance of any interest in the residence in foreclosure.
(2) Record with the county recorder any document, including, but not limited to, any instrument of conveyance, signed by the equity seller.
(3) Transfer or encumber or purport to transfer or encumber any interest in the residence in foreclosure to any third party, provided no grant of any interest or encumbrance shall be defeated or affected as against a bona fide purchaser or encumbrancer for value and without notice of a violation of this chapter, and knowledge on the part of any such person or entity that the property was “residential real property in foreclosure” shall not constitute notice of a violation of this chapter. This section shall not be deemed to abrogate any duty of inquiry which exists as to rights or interests of persons in possession of the residential real property in foreclosure.
(4) Pay the equity seller any consideration.
(c) Within 10 days following receipt of a notice of cancellation given in accordance with Sections 1695.4 and 1695.5, the equity purchaser shall return without condition any original contract and any other documents signed by the equity seller.
(d) An equity purchaser shall make no untrue or misleading statements regarding the value of the residence in foreclosure, the amount of proceeds the equity seller will receive after a foreclosure sale, any contract term, the equity seller’s rights or obligations incident to or arising out of the sale transaction, the nature of any document which the equity purchaser induces the equity seller to sign, or any other untrue or misleading statement concerning the sale of the residence in foreclosure to the equity purchaser.
(e) Whenever any equity purchaser purports to hold title as a result of any transaction in which the equity seller grants the residence in foreclosure by any instrument which purports to be an absolute conveyance and reserves or is given by the equity purchaser an option to repurchase such residence, the equity purchaser shall not cause any encumbrance or encumbrances to be placed on such property or grant any interest in such property to any other person without the written consent of the equity seller. Nothing in this subdivision shall preclude the application of paragraph (3) of subdivision (b).
(Amended by Stats. 1997, Ch. 50, Sec. 3. Effective January 1, 1998.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.7.

1695.7. An equity seller may bring an action for the recovery of damages or other equitable relief against an equity purchaser for a violation of any subdivision of Section 1695.6 or Section 1695.13. The equity seller shall recover actual damages plus reasonable attorneys’ fees and costs. In addition, the court may award exemplary damages or equitable relief, or both, if the court deems such award proper, but in any event shall award exemplary damages in an amount not less than three times the equity seller’s actual damages for any violation of paragraph (3) of subdivision (b) of Section 1695.6 or Section 1695.13; or the court may award a civil penalty of up to two thousand five hundred dollars ($2,500), but it may not award both exemplary damages and a civil penalty. Any action brought pursuant to this section shall be commenced within four years after the date of the alleged violation.
(Amended by Stats. 2003, Ch. 74, Sec. 1. Effective January 1, 2004.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.8.

1695.8. Any equity purchaser who violates any subdivision of Section 1695.6 or who engages in any practice which would operate as a fraud or deceit upon an equity seller shall, upon conviction, be punished by a fine of not more than twenty-five thousand dollars ($25,000), by imprisonment in the county jail for not more than one year, or pursuant to subdivision (h) of Section 1170 of the Penal Code, or by both that fine and imprisonment for each violation.
(Amended by Stats. 2011, Ch. 15, Sec. 32. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.9.

1695.9. The provisions of this chapter are not exclusive and are in addition to any other requirements, rights, remedies, and penalties provided by law.
(Added by Stats. 1979, Ch. 1029.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.10.

1695.10. Any waiver of the provisions of this chapter shall be void and unenforceable as contrary to the public policy.
(Added by Stats. 1979, Ch. 1029.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.11.

1695.11. If any provision of this chapter, or if any application thereof to any person or circumstance is held unconstitutional, the remainder of this chapter and the application of its provisions to other persons and circumstances shall not be affected thereby.
(Added by Stats. 1979, Ch. 1029.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.12.

1695.12. In any transaction in which an equity seller purports to grant a residence in foreclosure to an equity purchaser by any instrument which appears to be an absolute conveyance and reserves to himself or herself or is given by the equity purchaser an option to repurchase, such transaction shall create a presumption affecting the burden of proof, which may be overcome by clear and convincing evidence to the contrary that the transaction is a loan transaction, and the purported absolute conveyance is a mortgage; however, such presumption shall not apply to a bona fide purchaser or encumbrancer for value without notice of a violation of this chapter, and knowledge on the part of any such person or entity that the property was “residential real property in foreclosure” shall not constitute notice of a violation of this chapter. This section shall not be deemed to abrogate any duty of inquiry which exists as to rights or interests of persons in possession of the residential real property in foreclosure.
(Amended by Stats. 1980, Ch. 423, Sec. 9. Effective July 11, 1980.)
2023 California Code › Civil Code - CIV › DIVISION 3 - OBLIGATIONS › PART 2 - CONTRACTS › TITLE 5 - EXTINCTION OF CONTRACTS › CHAPTER 2.5 - Home Equity Sales Contracts › Section 1695.13.

1695.13. It is unlawful for any person to initiate, enter into, negotiate, or consummate any transaction involving residential real property in foreclosure, as defined in Section 1695.1, if such person, by the terms of such transaction, takes unconscionable advantage of the property owner in foreclosure.
(Added by Stats. 1980, Ch. 423, Sec. 10. Effective July 11, 1980.)