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License to Steal

By
Real Estate Broker/Owner with UNcommon Homes

If you're a licensed Maryland Home Improvement Contractor you have been issued a License to Steal.

How's that possible you say?

Here's how.

 

  1. Get you MHIC license, it's very easy, you don't even have to know anything about construction.  The test is an open book test on laws and regulations.  It's Simple!
  2. Next, put an ad in the paper, cost, about $50 per week.
  3. Wait for the phone to ring.
  4. Visit unsuspecting home owners and give estimates for work.  You can easily "low ball" your bids so you make sure you get the job.
  5. Take a deposit, current law allows up to 1/3 of total job cost.  $90,000 total job = $30,000 deposit before you ever drive one nail.  J
  6. Use the money to buy low quality material and begin work.
  7. After few days "walk off the job" and don't return, keep the balance of any payments.
  8. Next file a "mechanics lien" against the home/homeowner.  You can make a false claim that the owner refused to make additional payments for work.  You can tie up their home for years in litigation, or at least threaten to.
  9. The unsuspecting home owner will have to hire an attorney which will cost them thousands just to prove your claim is bogus.  You may even be able to win {Judges are generally ignorant of construction practices and make bad rulings based on their ignorance.  With enough bogus paperwork you can confuse the judge.  Who will probably rule in your favor} and get more money - even without your own attorney. 
  10. If you don't want to litigate, which you don't, you have more home owners to scam, you can go to the homeowner, tell them you'll withdraw your mechanics lien if they sign a "settlelement" agreement absolving you of any wrongdoing and they must let you keep their money.  If you're really bold you can demand even more money {extortion}.  It's cheaper for the owner to forfeit the $30,000, $40,000 or even $50,000 you have kept, than it is to spend $80,000 or more in attorney's fees to fight you.
  11. The best part is the homeowner can't file a complaint with DLLR because the local court supersedes DLLR administrative law hearings.  DLLR is powerless to touch you!

Great scam huh!

Ya wanna know who set up this great scam for you?  The Maryland Home Improvement Commission and the Department of Licensing and Regulation.

How do I know this works?   I've heard of a contractor who pulls this stunt all the time.   Contact me and I'll tell ya who it is so you don't get burned.

There are ways to protect yourself from all unscrupulous contractors, contact me and I'll tell you how.

Jeff Underwood, Architect, Broker, Builder 410-730-2185, uncommon@comcast.net

Posted by

You’ve sold the home.  You got the price your sellers wanted.  Now what?  The appraiser calls, don’t panic, you’re prepared – or are you?

Here are a few tips for you to assist the appraiser and ensure a smooth path to closing.

Make every effort to be available to the appraiser for the requested inspection date or make sure he has convenient access.

If you attend the inspection do not distract the appraiser during the inspection.

Advise the appraiser of all the homes, you, your office and competitors have sold in the neighborhood.  Let him know YOU are the expert in the neighborhood [even if your not].

Appraisers want statistics and FACTS regarding values, amenities, neighborhood and market area data.  Provide a highlight sheet of all pertinent patent and latent information about the house, i.e. furnace updated, roof replaced, electric upgraded etc…

Provide the sales contract with all addenda and agreements.  Appraisers must consider ALL value-influencing factors.  Undisclosed terms or conditions could adversely influence the reliability of the appraisal report.

Provide a copy of the current deed.  The appraiser needs to know the exact legal description, how title is held and any encumbrances, restrictions, covenants and easements that may affect value.

Providing a site drawing with location and house dimensions is also very useful.  With the site plan, the appraiser can confirm the legal description, lot size, location in or near flood zones and the square footage of the dwelling.

Provide a recent tax bill.  Again, this document will corroborate the legal description, states the annual taxes and occasionally provides the site size.

Provide the appraiser at least three relevant sales – don’t just give him the highest sales you can find.  Remember, he has access to all the data and can corroborate whatever you give him.  If your sales aren’t relevant you lose credibility and the appraiser may not rely on your expertise.  Try to find relevant sales less than 90 days old; you can still supply sales up to six months old.  You should also provide any pending sales and several active listings.  Sold, Pending and Active listings are ALL valuable tools to the experienced appraiser.

Any other information you have floor plans, condominium documents, local developer plans, home inspection reports etc…  all help the appraiser reach accurate conclusions and enhances the opinion of value.

Show All Comments Sort:
Dawn Workman
Veracity Real Estate Group, LLC - Camas, WA
Camas Real Estate Expert, MBA, 480-540-8100
WOW that is terrible.  I tell my clients it is important they hire someone they know or someone I know, but there that rule of thumb is critical!
Jul 12, 2007 05:31 PM
Dawn Workman
Veracity Real Estate Group, LLC - Camas, WA
Camas Real Estate Expert, MBA, 480-540-8100
WOW that is terrible.  I tell my clients it is important they hire someone they know or someone I know, but there that rule of thumb is critical!
Jul 12, 2007 05:31 PM
Paul Moye
Benchmark Realty - Franklin, TN
Broker, GRI, SRES
Good info for consumers to read, it happens in GA, NC and TN as well everyday.
Jul 13, 2007 12:26 AM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation
As a Maryland Realtor for almost 35 years, I have never encountered a contractor that was anything other than a total professional.  Some do better work than others, some charge more/less than others, but none have been the slightest bit "unscrupulous."  It sounds like you must have had a bad experience, which is unfortunate, but it's very misleading to paint the entire industry statewide with such a negative label - like calling all real estate agent unscrupulous because one is, somewhere in MD.  Just my opinion.
Jul 13, 2007 12:35 PM
Anonymous
Jeff Underwood

I have been involved with the real estate and home improvement/building industry for 30 years and there are more bad apples than good. I have hired good contractors and bad.

The point of the article is to make consumers aware that the state of Maryland is impotent in enforcing laws.  The attorney general and MHIC have both agreed that what is stated in "License to steal" is 100% correct and they are POWERLESS to stop it.  I offer this article for consumer awareness.  I have a "bullet proof" way to prevent such occurrences in the future.  If anyone wants advice on how to prevent unscrupulous contractors form taking advantage contact me anytime.

Jeff Underwood

Jul 14, 2007 12:43 AM
#5