Real Estate News and Advice
November 11, 2009
Today's Insider REALTOR Secret


Search Realty Times
 









Today's Insider REALTOR Secret



Ultimate Real Estate Success SuperConference





NEED HELP?

Click for Live Support


Call: 214-353-6980








Home Repair Scams: Don't Become a Victim

So far in Alberta this year, four home renovation contractors have been convicted of renovation fraud activities. A year ago, a London, Ontario man pleaded guilty to 19 counts of fraud, in which most of the victims were seniors, in renovation scams to support an alleged gambling habit. An Ontario driveway paver was found guilty of unfair business practices when consumers from Sarnia to Belleville complained about the work. One owner's vehicle sank into the asphalt when it was parked, according to Ontario's Ministry of Consumer and Business Services.

Year after year, across Canada, gullible consumers fall victim to renovation scams. The Canadian Council of Better Business Bureaus says general contractors and home renovation were among the top 10 complaints received by consumers in May this year.

Most problems relating to home renovations involve contractors who solicit contracts door-to-door, says the Consumer Services Division, Alberta Government Services.

In a seniors fraud awareness program, the division says that in many cases, these disreputable contractors have searched out potential victims based on their age and the age of their houses.

In a typical case, the contractor says he "just happened to be in the area" and "noticed that your bricks are loose" or "the roof needs fixing" or something similar. In many cases, the work doesn't need doing at all. A contractor promises that since he is in the neighbourhood, he can "give you a special price", and he may also promise a discount if you allow him to advertise your work. Some offer "lifetime warranties" that mean nothing because you won't be able to find them if anything goes wrong.

Consumers should immediately be suspicious of any contractor who shows up unexpectedly, with an great offer. Another tipoff that he could be a scam artist is if he offers a quick quote on a job without carefully investigating the work that has to be done, and if he demands a large amount of money up front for building materials. He might also offer to work without a contract or for cash, which he promises will save you money.

Homeowners who have been duped by such pitches have paid out deposits for materials and then never seen the contractor again. Or, the work has been substandard or completely overpriced.

No matter what story you hear at the door, it's always best to take your time before making any renovation decisions. Here are some other common-sense ideas when you need home repairs or renovations:

  • Ask for references and check them.

  • Ask for more than one quote. Most experts recommend that you obtain at least three written estimates. Never accept an estimate over the telephone or without having the contractor inspect the area to be renovated.

  • Make sure the estimate includes all the work that is to be done.

  • Expect to be asked some questions, says the Ontario Ministry of Consumer and Business Services. For example, the company should want to know the quality of materials you expect.

  • Insist on a contract, which should spell out in detail the work to be done, the estimated cost and the time it will take to complete the work. Above all, make sure the contract includes the name and address of the contractor.

  • In Alberta, contractors who sell their services door-to-door are required to be licenseds as prepaid contractors and post a security with Alberta Government Services. Ask to see a copy of this business licence.

  • If in doubt, check the company out with the local Better Business Bureau, you provincial consumer ministry, your local licensing commission or the police department.

  • If a seniors' discount is being offered, check with friends and relatives to see if it really is a discount.

  • Ask questions and don't always believe the answers.

  • Make sure the warranty is clearly spelled out in writing.

  • Always remember that if somebody offers you something that sounds too good to be true, it probably is.
  • Published: July 18, 2002

    Use of this article without permission is a violation of federal copyright laws.




    Jim Adair is editor of REM: Canada's Real Estate Magazine, a business publication for real estate agents and brokers. He has been writing about Canadian real estate, home building and renovation issues for more than 30 years. You can contact Jim at .






    Real Estate News Network

    You must enable Javascript to view the Video content and Navigation on this site.





    Mortgage Rates
    30 Year Fixed: 4.98%
    15 Year Fixed: 4.40%
    1 Year Adj: 4.47%
    (U.S. Weekly Averages)

    Today's Headlines


    Spotlight


    Let Webcast City webcast your message.



    Agent Publicity | Market Conditions Interview | Local Market Conditions | Video Newsletter | Article Index | Terms & Conditions | Privacy | Contact Us

    Copyright © 2002 Realty Times®. All Rights Reserved.