Carlos in Your Corner, 2/25/2012 on Property Source Radio.
by Carlos Rodriguez, Former NYS Assistant Attorney General
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Spring is in the air and so are some scams. We have received some reports of scams in our area that everyone needs to be aware of. They all include something along the lines of someone is in legal or medical trouble and you need to send money right away. Do not give them any information, get a name and return phone number (google that number and you may be surprised), and report to your local PD so we can track these incidents.
The next scam that always pops up in the spring is home repair scams. Sooner or later we all need work done to our homes so here are some warning signs and tips to help keep you safe:
Warning signs you should watch for include when a salesperson:
Contacts you first (comes to your home uninvited or contacts you by telephone);
Tells you that you need to make repairs immediately;
Talks too fast (to confuse you) and pressures you to sign papers today;
Tells you that they are doing work in your neighborhood and claims they have “extra materials” left from another job;
Offers to use your home as a “display home” or offers a discounted price or “discounts” for referrals, but only if you buy today!
Tells you something that sounds too good (or bad) to be true. (It probably is not true!)
Tips to Avoid Scams
Do your homework and be prepared:
Before you contact a home improvement company, decide first what you want to have done and how much you can afford to spend. Don’t let the company decide for you.
Talk to friends and family to get names of reputable contractors they have used.
If you need financing to pay for home repairs, shop around first. The financing offered by a contractor may be expensive, so check with banks, credit unions, etc., to see if you can find a better deal. Be wary of credit life insurance and credit disability insurance, as these can be very expensive and are rarely needed.
If you cannot afford to pay for home improvements in cash, many honest (and dishonest) home improvement companies will offer to finance the cost for you. Many times they want to take a mortgage (called a “deed of trust”) on your home. A deed of trust means that if you do not make all of your payments, you could lose your home! So think twice before signing a deed of trust or any other contract — ask yourself whether you are willing to risk losing your home if you get behind in your payments.
Get at least two estimates:
Many companies give free inspections and written estimates — get two or three before choosing a contractor. Remember that the lowest price is not always the best deal. Compare costs, materials, and methods suggested by different companies to decide what materials and methods are best for your home.
Check out the contractor:
Is the company reputable? How long has it been in business? Ask for references and then check them out! Make sure the company is licensed, bonded, and insured. Ask to see its certificate of insurance. Contact the Better Business Bureau and Attorney General to check on complaints.
Ask if there is a guarantee or warranty. If so, make sure it is in writing. If the company won’t put its promises in writing, look for another company which will.
Understand the contract:
Do not sign the contract until you read it carefully. If the salesperson pressures you to sign before you read and understand all of the contract – don’t sign it! Never rely on the salesperson to read or explain the contract to you. Ask a trusted friend or lawyer to assist you.
Do not let someone talk you into buying something you don’t need — or can’t afford.
Do not pay for repairs in advance. Pay the final payment only after the work is complete.
Do not sign a contract unless:
It includes a detailed description of the work to be done and specifies exactly what materials will be used and their quality;
All of the contractor’s promises are in writing;
The contract includes the starting date and estimated completion date; and
The contract is fair and the terms (including the price, finance charges and payments) are what you agreed on. If not, do not sign it!
Be sure to get a copy of everything you sign when you sign it.
Inspect the work
Make sure that the contractor has a City permit to do the work. Inspect all of the work very carefully to make sure it was done properly. If you have any doubts or questions, do NOT make your final payment or sign a “completion certificate” until the work is properly finished.