Understanding Contractor Scams: Things to note
Large Upfront Payments
Licensing and Insurance Issues
Operating without proper licenses and insurance is a red flag. These documents are essential for protecting your interests. Prefer builders who are registered with prestigious associations like Trion Warranty Corporation and provide 1, 2, and 7-year Tarion warranty for new homes.
Payment Scams
Be cautious of requests for additional payments or changes to the payment schedule without a clear explanation.
Unscrupulous contractors may try to inflate costs mid-project or request payments earlier than agreed upon, leaving you vulnerable to financial loss. A legitimate contractor should always provide a detailed explanation and documentation for any changes to the budget or timeline, ensuring that you understand why adjustments are necessary.
Thoroughly Research Potential Contractors
Verify Licenses and Insurance
Visit Completed Projects
Detailed Contracts and Payment Plans
Detailed Contract
Payment Schedule
Change Orders
Monitor the Construction Process Closely
Site Visits
Documentation
Protecting your financial investment if you’re a foreign investor
Escrow Accounts
Avoid Cash Payments
Review Contracts Carefully
Conclusion
Building a custom home is an exciting experience, but it’s essential to approach it with caution. By understanding the common tactics used by scammers and taking proactive steps to protect yourself, you can significantly reduce the risk of falling victim to fraud. Thorough research, detailed contracts, and active monitoring are key to ensuring a successful and stress-free home building experience.
Protect your dream home from contractor scams. Contact Saldan Homes today for expert guidance and reliable custom home builders in Canada. Our experienced team can help you navigate the construction process with confidence.
