Home Repair & Contractor Fraud
The Oklahoma Real Estate Commission offers this guide to help homeowners avoid home-repair and contractor scams. The Commission licenses real estate brokers and sales associates; it does not regulate contractors, so complaints about a contractor should go to the appropriate state agency.
What is the Scam?
Scammers use false or misleading claims to convince homeowners that repairs are needed when they are not. Some may even intentionally damage property to create a need for services such as utility work, tree removal, or roof repairs.
Others perform unnecessary repairs, use inferior materials, charge for work they never performed, or increase the agreed-upon price without the homeowner's approval.
Scammers may pretend to represent government agencies, utility companies, or insurance companies to gain a homeowner's trust.
Some scammers target homeowners after storms or natural disasters, taking advantage of urgent repair needs and property damage.
Some contractors accept payment or deposits but never begin or complete the promised work.
Warning Signs
- Is not licensed or registered for the work (when that is required) or won't provide proof.
- Show up uninvited, especially after a storm, or pressures you to decide immediately.
- Demands cash or gift cards, or a large payment before work begins.
- Offer a discount for "leftover materials," or a price far below everyone else.
- Ask you to sign a blank or incomplete contract.
- Offer to waive, absorb, or reimburse your insurance deductible.
- Claim to be approved or endorsed by the government or your insurer without proof; or pressures you to sign before you contact your insurer.
- Ask you to sign your insurance claim/an "assignment of benefits" without clearly explaining it.
- Use unmarked vehicles or has no verifiable business address.
How to Protect Yourself
- Consider getting several written estimates and check references, reviews, and complaint history.
- Confirm any required license or registration, if applicable. Some individuals in Construction industries are overseen by the Construction Industries Board. Check city and county requirements too.
- Ask for proof of liability insurance (and workers' compensation, if applicable), and confirm who is responsible for any permits.
- Understand your own insurance coverage; don't rely on the contractor to tell you what is covered.
- Use traceable payments such as a check or credit card and avoid paying in full before the work is finished.
- Read the contract before signing. Make sure it has no blank spaces; a start and completion date; clear payment terms; clear scope and materials; warranty details; and the contractor's correct name, address, and license or registration number. Put any change in work or price in writing.
- Photograph the property before and after work.
- Keep all estimates, contracts, invoices, receipts, and messages.
- Never sign anything you do not understand.
If You Suspect Fraud
Stop further payments or work until you have reviewed your options.
Document the damage or unfinished work and keep all records.
Notify your insurer if a claim is involved, and report suspected insurance fraud.
Contact local law enforcement if you believe a crime has occurred.
