Alarm contracts in Texas: no-contract options and your rights

By the BillAnswers team · Updated October 20, 2026 · How we check facts

In Texas, any company that sells, installs, services or monitors your alarm must hold a security services contractor license from the Texas Department of Public Safety (DPS), which you can check in the DPS TOPS search. You can skip a monitoring contract by installing and watching a system yourself, or by asking a licensed company for terms without a fixed term. If you sign at home with a salesperson, federal and Texas law let you cancel before midnight of the third business day.

Your options at a glance

Texas law does not require you to sign a monitoring contract to have an alarm. What it does require is that the company doing the work is licensed. This page names no alarm brands and has no paid links.

Setup	Who must hold a DPS license	What to check before you start
A company sells, installs and monitors	That company	Contract length, automatic renewal, early cancellation cost
You install, a company monitors	The monitoring company	Whether monitoring has a fixed term or can stop any month
You install and watch it yourself (self-monitored)	Nobody: chapter 1702 does not apply to an owner who installs on their own property	Who responds when it goes off, since no monitoring company is watching
You buy equipment online or in a store	Not the seller, if it sells only by e-commerce, over the counter or by mail	Return policy of the store

What Texas requires of alarm companies

Alarm companies are regulated by the Texas Department of Public Safety (DPS) Private Security Program under Texas Occupations Code chapter 1702.

Who needs a license. Section 1702.105 says a person acts as an alarm systems company if it "sells, installs, services, monitors, or responds to an alarm system or detection device." Section 1702.102 says that without a security services contractor license, a person may not act as an alarm systems company or offer to perform those services.
Who does not. Section 1702.328 says the chapter does not apply to a person who owns and installs an alarm device on their own property, or to a person who sells alarm systems exclusively by e-commerce, over the counter or by mail order.
Ads. Section 1702.131 says a licensed company's advertisement must contain the company name and address as stated in DPS records.
Written contract. Section 1702.288 requires DPS rules under which an alarm company must tell each client that the client is entitled to a written contract showing the fee arrangement and the services. The company must provide it within 7 days after you ask, dated and signed by the owner, the manager or a person they authorize.
If your contract is sold. Under the same section, if your alarm company sells your contract to another company, it must tell you within 7 days the new company's name, address, phone number and contact person. It must also tell you, when the contract is negotiated, that another licensed company may provide some services by subcontracting.

How to look up a company's DPS license

Open the DPS TOPS search.
Choose Businesses.
Type the company name. DPS says that if you get too many results you can add the license number, state, zip code or license type, and if you get none you can add an asterisk (for example, "York*").
Compare the name and address in the result with the ad, the salesperson's card and the contract.
If you cannot find the company, ask for its DPS license number and search again before you sign anything.

No-contract and self-monitored options

Self-monitored systems. You buy the equipment, install it yourself and get the alerts. There is no monitoring contract because no company is monitoring. The trade-off is that you decide what to do when an alarm goes off.

Professional monitoring without a fixed term. Some companies offer monitoring you can stop without a long commitment. Terms differ by company, so ask for the term in writing and read the cancellation section of the contract before you pay.

Professional monitoring with a contract. If you choose a contract, the questions below help you see the full cost before you sign.

Your right to cancel a sale made at your home

Two rules give a three-day window to cancel sales made in person away from the seller's business, such as at your front door:

FTC Cooling-Off Rule (16 CFR part 429). It covers a sale where the seller personally solicits you and you agree at a place other than the seller's place of business, for $25 or more at your home or $130 or more at other places such as a hotel room or fair. You may cancel before midnight of the third business day after the sale. The FTC counts every calendar day as a business day except Sundays and federal holidays.
Texas Business and Commerce Code chapter 601. It covers similar sales of goods or services over $25 and gives the same deadline. Section 601.101 says the merchant is not entitled to pay for services performed under a canceled transaction.

Under both rules, the seller must give you the contract or receipt with a notice of cancellation form in duplicate, in the same language used in the sales presentation. If you cancel, payments must be returned within 10 business days after the seller receives your notice. To cancel, mail or deliver a signed and dated copy of the notice, or any other written notice, to the address on the form before the deadline, and keep proof.

These rules do not cover sales made after you negotiated at the seller's store, and the FTC rule does not cover sales made entirely by mail or phone. For a contract you start online, by phone or in a store, read the contract's own cancellation terms before you sign.

Questions to ask before you sign

What is your DPS license number, and does the name and address in TOPS match yours?
How long is the monitoring term, and does it renew automatically?
What does it cost to cancel early, and what happens if I move?
Is the equipment mine, or leased, and what happens to it if I cancel?
Can the monthly price change during the term?
Will another company do the monitoring or service?
Can I have the full written contract with the fee arrangement before I sign?
If you are selling at my home, where is my notice of cancellation?

BillAnswers (PRIMEZEN LLC) does not sell, install or monitor alarm systems.

Just moved? See the moving to Texas checklist for every bill and agency step, and how much movers cost if you are still planning the move.

Common questions

Does an alarm company need a license in Texas?

Yes. Texas Occupations Code 1702.102 says a person may not act as an alarm systems company, or offer those services, without a security services contractor license. Section 1702.105 defines an alarm systems company as one that sells, installs, services, monitors or responds to an alarm system.

How do I check an alarm company's license?

Use the DPS TOPS search at tops.portal.texas.gov, choose Businesses and search the company name. Check that the name and address match the ad and the contract.

Can I cancel an alarm contract I signed at my door?

Usually yes, if a salesperson sold it to you at your home for $25 or more. The FTC Cooling-Off Rule and Texas Business and Commerce Code chapter 601 let you cancel before midnight of the third business day after you sign.

Do I need a license to install my own alarm?

No. Texas Occupations Code 1702.328 says chapter 1702 does not apply to a person who owns and installs an alarm device on their own property.

Am I entitled to a written alarm contract?

Yes. Section 1702.288 requires DPS rules under which an alarm company tells clients they are entitled to a written contract showing the fee arrangement, delivered within 7 days after you ask for it.

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Last updated: October 20, 2026