Checklist: Preventing Builder Fraud

Tips from 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