Checklist: Preventing Builder Fraud

Tips by Real-Estate-Agents.com

When selecting a home professional, using a few guidelines can help protect you from fraudulent contractors. These warning signs indicate a contractor who may be running a scam:

  • Does not list a number in the phone book.
  • Asks you to get required building permits.
  • Only accepts cash.
  • Solicits door-to-door.
  • Says you will get a discount if you find other customers for that contractor.
  • Uses left-over materials to complete your job.
  • Tells you your job will be a demonstration.
  • Offers exceptionally long guarantees.
  • Asks you to pay for the entire job up front.
  • Suggests you borrow money from a lender the contractor knows.
  • Try to scare you into signing for repairs that they say are urgent.
  • Demands a lien on your property.

Always read and understand every word of a contract before signing it. If you don't understand something, ask for clarification, and NEVER sign a contract with a service professional who makes promises that sound too good to be true.

-- Tips courtesy of Service Magic

Check References for Contractors

Checklist: Questions for Your Architect

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