Beware of People Posing as Licensed Contractors Seeking Jobs and More

By
Real Estate Agent with Sun Lakes Realty DRE #01492138

Beware of People Posing as Licensed Contractors Seeking Jobs and More

 

Beware of People Posing as Licensed Contractors Seeking Jobs and MoreRecently in the Inland Emipre in CA, the State Contractors Licensing Board targeted people who were contacting  many homeowners after the fires last summer. One agent posed as a homowner and asked applicants to submit bids. Anyone who takes a job over $500 must have a contractors license in the state of CA.

This was a joint effort of the CSLB all over the state and over 75 were arrested for warrants. "Homeowners should be nervous when they hear the background of some of the people we caught in these stings," CSLB Registrar Steve Sands said. "Unlicensed, illegal activity that puts homeowners at risk and legitimate contractors at a competitive disadvantage will not be tolerated."

Many of the 75 arrestees were on probation and parole for various offenses including burglary, assault and sex crimes. Possibly they were not really interested in doing construction but just wanted to get inside the homeowner's home.

Things to Remember when hiring a contractor:

1. Get 3 bids and remember the cheapest is not always the best.

2. Check their name on the state web site or call if you are not internet savvy.

3. Any job over $500, requires a licensed contractor.

4. It is against the law to advertise as a licensed contractor if they are not.

5. Sometimes it is good to get a referral from a neighbor, friend or relative.

6. Never pay more than 10% of the job upfront.

7. Sometimes you can pay directly for the supplies at the Home Improvment stores and make sure they are delivering to your job site.

8. If you are a victim or suspect someone of attempting to pass themselves off, contact the CSLB immediately. You can contact your local police jurisdiction as many will take reports.

9. Unfortunately this is just a misdomeanor so if they are convicted, they will only get up to 6 months in jail and $5,000 in fines. Homeowners must be the eyes and ears for the CA Contractors State License Board.

Many states vary their charges and penalties but all states have regulations and work hard to stop this fraud. Be sure to report it if you are a victim of a crime or know someone who was.

Thanks for Reading my Blog

 

Unlicensed Workers Posing as Licensed ContractorsCalifornia is a dream-come-true state no matter what your needs or wants are. We have year round warm weather, beautiful beaches, rustic mountains and desert communities. If you are looking for a home in Southern California, please contact me. I am a local California Realtor, live in the Inland Empire community and am aware of the local market. I am here to help you find a home or to sell the home you currently own. California has great opportunities to view Nature and Bird Watching. Whatever your needs are, you will find it here in California! From the Inland Empire you are 45 minutes to the beaches, mountains or desert. Housing is affordable in the Inland Empire area!

Kristin Hamilton DRE #01492138 Keller Williams Realty – I am a full time agent and deal in all types of real estate transactions. Trusts, Probate, Short Sales, Standard Listing, Single Family Homes, Apartments 1-4 units, Duplexes and Condos. I am also an experienced REO agent. I sell real estate in the Riverside, San Bernardino, Orange, and Los Angeles Counties. I am a trained and experienced Short Sale agent. If you are looking for a professional and experienced agent, I am just a click away. Google me at Kristin Hamilton-Real Estate Agent. Homeowners and Buyers both will find my services top notch and successful. Call me to sell your home; both traditional and short sales.

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If you want to sell your home, call Kristin @909-557-6966 or email me at kristinhamilton@kw.com

Google me at Kristin Hamilton, Keller Williams Realty, Redlands, CA. ©

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Comments (14)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I find at leaast one phoney guy pops up around my way as well now an then.. Keep a look out and be safe. ;)

Oct 16, 2013 02:31 PM
William Johnson
Retired - La Jolla, CA
Retired Real Estate Professional
Hi Kristine, an excellent post. I am guessing that this is post with the photo and text wrap you inquired about. Hopefully the instruction I sent works for you. Let me know.
Oct 16, 2013 03:33 PM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Excellent topic Kristin, there is value in hiring a licensed contractor. You still need to do your homework but there is recourse if they are licensed and a problem comes up.

I think it is important to note that the $500 limit that you referred to includes the cost of materials.

Oct 16, 2013 03:52 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kristin what a great post, I always check even Agents/ Realtor's licenses when they submit offers so I do not find unexpected surprises....

Oct 16, 2013 03:53 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is an excellent topic for continuing discussion. Real estate professionals need to be very careful when recommending contractors. There could be liability for recommending an unlicensed person or company.

Oct 17, 2013 02:07 AM
Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR
BROKER of Green Realty Properties® - 954-667-7253 - Davie, FL
Top Listing Broker

I agree with all especially the #1 "the cheapest is not always the best". Well written post Kristin. Thanks for sharing. 

Oct 17, 2013 02:56 AM
Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Laura,

I highly promote employment but if they are skilled, they can take the 10 week class and take the state exam. I have several friends who had worked as handymen for many years and under licensed professionals and then when they were ready, they took the test and now they have their license. It was a proud day for them. Unskilled unlicensed people give the others a bad name and need to be shut down.

Oct 17, 2013 03:34 AM
Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi William,

Yes this is the post I wanted to wrap the picture around the text but maybe will do another one instead and practice first so I don't mess this one up. Thanks for stopping and for the nice comments. I am sure the state was working in your jurisdiction too. Even the licensed guys will report someone who is not or if their license# belongs to another person. I have seen this many times.

Oct 17, 2013 03:38 AM
Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Tom,

Thanks for stopping by and if all the licensed contractors were as smart and as professional, California would be in a much better situation to give good, and fair service. Unfortunately some of these guys are just fraudsters and will steal the homeowners deposit and never come back or break into the home and burglarize them as many times you must give a key to your contractor. And what if you give them a credit card # as that can cause terrible repercussions for a long time. Thanks for stopping by. 

Oct 17, 2013 03:42 AM
Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Endre,

I agree and always check other agents when they submit offers and a few times have found they are licensed but not working under anyone and just inactive. Also lenders are on the state site and need to be checked if you do not know them or the company they are working for. I do not want any surprises either.

Oct 17, 2013 03:44 AM
Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Roy,

Yes you are so right and when my clients ask me, I always say you should hire a licensed contractor with no exceptions. Sometimes they can find a friend who recommends a painter but I rarely do as I do not want problems later. Carpeting, hire a contractor or go to a carpet store and anything else; cabinets, remodeling bathrooms and kitchens, closet doors, lights etc. I recommend my pool guy and gardener but that is all.

Oct 17, 2013 03:49 AM
Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Patty,

Thanks for the kind words. In our business, we sometimes see and hear sad news about clients and friends getting ripped off and it is not good. Happy Autumn.

Oct 17, 2013 03:50 AM
Jared Garfield
Rich Life Real Estate Team - Buford, GA
Invest With The Best For The Highest Returns!

Kristin, 


This is so important, I had a client who refused to use the contractor I recommended that had done more than 50 full renovations for me on investment properties because he was a few hundred dollars higher.  She used someone who claimed to be licensed but was not and that "contractor" embezzled $35,000 and she had to sue him and press criminal charges.  The guy went to jail, but she never saw a penny!

Oct 19, 2013 12:35 AM
Tom Larsen
The Larsen Protection Team - Williamsville, NY
We Shop, You Save!

Ask for a "Certificate of Insurance" from their insurance broker for proof they are insured. the Good contractor's have it the lousy one's keep letting their's lapse for non-payment. The Certificate should have dates of coverage, who the carrier is and how much insurance they carry. It should also list the homeowner in the "certificate holder" box and be emailed to you DIRECTLY from that insurance broker.

I had a client who was insured one year then never renewed his policy. Whited out the previous certificate I had given him and passed it off as the current years proof. If a client of his called (they did, that is how we found out) to ask us for proof, we wouldn't have given it out, as his insurance had lapsed!

Please tell your Realtor colleague's this tip, it may save someone $35,000 like in Jared's case. In New York State, no contractor's license is required to do work, so there are more shady one's here that, say, California.

Beware the guy with the pick-up truck, a magnetic sign on it and some business cards!

Tom Larsen, insurance broker.

 

 

Oct 19, 2013 02:36 AM

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