Case Updates: A Missing Cancellation Notice Does Not Automatically Void an Ohio Home-Improvement Contract

A recent Ohio appellate decision provides an important reminder for homeowners and contractors dealing with the Home Solicitation Sales Act.

In Grinder v. Schaaf, 2026-Ohio-312, a contractor obtained a judgment for nearly $100,000 and an order permitting foreclosure of a mechanic’s lien against the homeowner’s property. The homeowner argued that the contractor should not recover because the parties’ agreement did not contain the cancellation language required by the Home Solicitation Sales Act (“HSSA”). 

The Eleventh District agreed that the HSSA applied—but still ruled in favor of the contractor.

The HSSA Applied to the Transaction

The HSSA generally applies when a contractor personally solicits or negotiates a sale of consumer goods or services at a buyer’s residence and the agreement is made there.

Importantly, the court held that the Act could apply even though the homeowner originally contacted the contractor. The statutory exception for buyer-initiated contact generally requires the contractor to maintain a fixed business location where the relevant services are regularly offered or displayed.

The court also found that the Act was not limited to work performed at the homeowner’s primary residence. The contract was negotiated at her residence, even though the repairs involved a different property. 

A Noncompliant Contract Is Not Automatically Invalid

The contractor’s agreement did not contain the required notice advising the homeowner of her three-business-day right to cancel.

That omission was significant, but it did not automatically invalidate the agreement.

The Eleventh District explained that the HSSA is not “self-executing.” In other words, a contractor’s failure to provide the required cancellation notice does not, by itself, cancel the contract, eliminate the contractor’s right to payment, or automatically entitle the homeowner to a refund.

Instead, when the required notice is missing, the homeowner’s right to cancel remains open. The homeowner must still exercise that right by delivering written notice of cancellation through one of the methods authorized by the statute. 

In Grinder, the homeowner never provided a valid cancellation notice. Because she did not properly cancel the agreement, she could not rely on the HSSA to recover her deposit or defeat the contractor’s payment claim. 

Why the Decision Matters

The distinction is important for both sides of a residential-construction dispute.

A homeowner should not assume that discovering missing cancellation language automatically defeats the contractor’s claims. The homeowner may need to send a timely and properly drafted cancellation notice before becoming entitled to the HSSA’s refund remedies.

Contractors should not view the decision as permission to disregard the statute. When the required notice is omitted, the homeowner’s right to cancel may remain available long after the ordinary three-day period would have expired. Once valid cancellation notice is received, the contractor may be required to refund payments and address any indebtedness or security interest arising from the transaction.

The Mechanic’s Lien Also Survived a Notary Challenge

The homeowner separately argued that the mechanic’s-lien affidavit was defective because the notarial certificate used acknowledgment language rather than language showing that an oath had been administered.

The Eleventh District recognized conflicting Ohio authority on that issue. Nevertheless, it followed the Ohio Supreme Court’s most recent controlling decision and held that the lien affidavit was valid because the document itself stated that the contractor had been “first duly sworn.” 

The court ultimately affirmed the contractor’s monetary judgment, mechanic’s lien, and foreclosure order.

The Practical Takeaway

The HSSA can provide powerful protection to Ohio homeowners, but those protections may depend on taking the correct procedural steps. A defective contract is not necessarily the same as a canceled contract.

Before sending a cancellation notice, filing a mechanic’s lien, or pursuing payment under a residential-construction agreement, both homeowners and contractors should understand how the HSSA applies and what actions are required to preserve their rights.

This article is provided for general informational purposes only and does not constitute legal advice. The application of the Home Solicitation Sales Act and Ohio’s mechanic’s-lien statutes depends on the facts of each transaction.