By: John Matarese , Emily Hanford-Ostmann

After meeting with a contractor at her home, homeowner Karen Toms agreed to pay $30,000 to have her kitchen cabinets refaced and new drawers installed.

"I normally don't sign," Toms said. "I want 24 hours to think about it. And the next thing I knew I was signing."

Her "what have I done" moment came later that night after finally reading reviews of the company.

"I woke up at 3 o'clock in the morning with buyer's remorse," she said. "I thought, 'I didn't even check on this company.'"

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Describing other customer reviews as "horrific," Toms reached out to the contractor hoping to cancel.

WATCH as the BBB explains when you have a right to cancel, and when you don't:

3-day right to cancel? When you have it, when you don't

The FTC's cooling-off rule and when it helps

The Federal Trade Commission's cooling-off rule gives consumers three days to cancel certain purchases — but deadlines and exceptions make it critical to act fast.

The rule applies to some sales made at:

• Your home
• Your workplace
• Your dorm
• A temporary sales location, like a hotel or convention center

"I don't want folks to assume that every purchase is going to come with a three-day cancellation period because it doesn't," said Josh Planos with the Better Business Bureau.

He said the rule mostly targets high-pressure door-to-door sales.

"The presentations that people have in home that are nearly always put under pressure," Planos explained, "people making pressure-packed decisions that they otherwise wouldn't."

Exceptions to the cooling-off rule

The cooling-off rule does not cover:

• Sales under $25
• Online, mail, or phone sales
• Sales at a seller's permanent place of business
• Emergency repairs

The rule never applies to:

• Real estate
• Insurance
• Vehicles (including new and used car purchases)

If you want to cancel a sale, Planos urges consumers to keep records of everything.

"We hear sad stories all the time from folks who clearly sound as though they were taken advantage of, but unless it's documented, it's really hard to prove that," Planos said.

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Toms wishes she had exercised her right to cancel but ultimately stayed with the company.

She is now struggling to get the project started, describing the contractor's communication as "radio silence."

If you signed a contract and have second thoughts, the cooling-off rule may give you a way out, but only if you act within three days, so you don't waste your money.

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