What we verified in “Contractor and home repair scams: how to protect yourself”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. California's Contractors State License Board (CSLB) describes these dishonest-contractor scams: a door-to-door solicitor offers roofing, painting or paving at a reduced price and, once paid, does little or no work and abandons the job; pressure to decide immediately, without comparing bids or checking licenses; a 'free inspection' followed by scares about wiring, plumbing or the roof to sell unnecessary, overpriced work; demands for cash, sometimes driving you to the bank to withdraw it; down payments larger than the law allows; and claims that a written contract is unnecessary.

   Sources 1 · What You Should Know Before You Hire a Contractor (CSLB): 'A solicitor offers to do roofing, painting or paving work at a reduced price. Once payment is made, little or no work is done and the project is abandoned'; 'An unscrupulous contractor pushes for an immediate decision about work'; 'A deceitful contractor offers to perform a free inspection'; 'The alarmed homeowner agrees to unnecessary and over-priced work'; 'A contractor demands cash payments, sometimes going so far as to drive the victim to the bank to withdraw funds'; 'takes more for a down payment than is allowed by law'; 'A contractor states that a written contract is unnecessary' · Checked October 17, 2026

2. According to the CSLB, in California anyone doing home improvement work valued at $500 or more must be licensed by the CSLB; you can verify a license online or at (800) 321-2752; a down payment cannot exceed 10 percent of the project price or $1,000, whichever is less; and it recommends not paying cash, putting a payment schedule in the contract and not letting payments get ahead of the work.

   Sources 1 · What You Should Know Before You Hire a Contractor (CSLB): 'Anyone performing home improvement work valued at $500 or more must be licensed by the Contractors State License Board'; 'verify license status on-line or by calling (800) 321-CSLB (2752)'; 'By law, a down payment cannot exceed 10 percent of the project price or $1,000, whichever is less'; 'Don't pay cash'; 'Include a payment schedule in your written contract'; 'Don't let payments get ahead of the work' · Checked October 17, 2026

3. According to the CSLB, most licensed contractors are competent, honest, hardworking and financially responsible; in California all contractor ads must show the state license number, but seeing a license number doesn't mean the license is valid, so check its status; when the contractor visits, ask for the pocket license and a picture ID and confirm it is the same person; salespeople working for a contractor must be registered as Home Improvement Salespersons; and it recommends getting at least three written bids on the same plans and being wary of one much lower than the others.

   Sources 2 · How do I find the right licensed contractor? (CSLB): 'Most licensed contractors are competent, honest, hardworking and financially responsible'; 'must have the contractor's state license number'; 'Seeing a license number doesn't necessarily mean the license is valid'; 'ask to see their pocket license, along with a picture I.D.'; 'Make sure the person you're dealing with is the same person on the license'; 'Those people must be registered with CSLB as a Home Improvement Salesperson'; 'Get at least three written bids on your project'; 'beware of any bid that is substantially lower than the others' · Checked October 17, 2026

4. The CSLB's license lookup lets you search by license number, business name, contractor name or Home Improvement Salesperson registration, and shows information including complaint disclosure.

   Sources 3 · Check a Contractor License or Home Improvement Salesperson (HIS) Registration (CSLB): 'Look up a contractor license or Home Improvement Salesperson (HIS) registration to verify information, including complaint disclosure'; 'Enter the contractor license number to check the status of their license'; 'Enter the Contractor Business Name to check the status of their license'; 'Enter a Salespersons name to check the status of their registration' · Checked October 17, 2026

5. According to the CSLB, in California there must be a written contract for every home improvement project over $500 in combined labor and materials, and changes must be in writing too; the contract should detail the work, price, payment timing, who gets permits and when the job will be finished, and identify the contractor with address and license number; never sign a blank or partially blank contract; record changes in a signed 'change order'; you may cancel within three days of signing, in writing, mailed before midnight of the third day; and the down payment should never exceed 10 percent of the contract price or $1,000, whichever is less.

   Sources 4 · What Should I Look for in a Contract and Binding Agreements? (CSLB): 'there must be a written contract for all home improvement projects over $500 in combined labor and materials costs'; 'any changes made to that contract must be in writing'; 'It should detail the work, price, when payments will be made, who gets the necessary building permits, and when the job will be finished'; 'give their address and license number'; 'Never sign a blank or partially blank contract'; 'change order'; 'You may cancel within three (3) days of signing a contract, but it must be mailed before midnight of the third day'; 'That down payment should never exceed 10 percent of the contract price or $1,000, whichever is less' · Checked October 17, 2026

6. In Florida, the Department of Business and Professional Regulation (DBPR) has an online license search where you can search by name, license number, city or county, or license type.

   Sources 5 · Licensing Portal - License Search (Florida DBPR): 'Verify a Licensee'; 'Search by Name'; 'Search by License Number'; 'Search by City or County'; 'Search by License Type' · Checked October 17, 2026

7. According to the CFPB, to choose a contractor ask people you trust for referrals, contact your local builders' association and get written estimates from two or three contractors to compare; don't pick someone going door to door, someone from out of state or someone who refuses to show ID or contact information, and don't pay up front without a signed contract; ask for the contractor's license or registration number and look it up on your state contracting board or agency's website, or call its hotline, and if they aren't listed they are not a good option; also check with your state licensing board and attorney general for complaints; ask about general liability and workers' compensation insurance; and ask whether a building permit is required and who will get it.

   Sources 6 · How can I find and work with contractors to rebuild after a disaster? (reviewed June 27, 2024): 'Ask for referrals from people you trust'; 'Reach out to your local builders' association or remodelers' council'; 'Get written estimates from at least two to three contractors to compare offers'; 'Pick someone going door to door'; 'Pick someone from out of state'; 'Work with someone who refuses to show ID or contact information'; 'Make any upfront payments without a signed contract'; 'look it up on your state contracting board or agency's website, or call their hotline to make sure it's valid'; 'If they aren't listed, they're not a good option'; 'check with your state's licensing board and state attorneys general office'; 'Do you have general liability insurance and workers' compensation coverage?'; 'Is a building permit required and who is responsible for getting that permit?' · Checked October 17, 2026

8. According to the CFPB, never sign a contract without reading it carefully, and ask questions; you can always walk away if you feel uncomfortable; the contract should state who pays for materials, their quantity and quality, who gets permits, start and completion dates, the total price and a payment schedule, and all verbal promises; get copies of the signed contract, guarantees and warranties before work begins; get a receipt for every payment; don't pay with cash; don't make the final payment until the work is completed to your satisfaction; and you may want a lawyer to review a contract for a significant amount.

   Sources 6 · How can I find and work with contractors to rebuild after a disaster?: 'Never sign a contract without carefully reading it, and always ask questions'; 'you can always walk away if you feel uncomfortable'; 'Who will pay for materials'; 'Quantity and quality of materials'; 'Who will obtain necessary permits or licenses'; 'Project start and completion dates'; 'A total price and a schedule for any payments'; 'All verbal promises'; 'Get copies of these documents before work begins'; 'Get a receipt for all payments'; 'Pay with cash'; 'Make the final payment until the work is completed to your satisfaction'; 'you may want to have it reviewed by a lawyer' · Checked October 17, 2026

9. According to the CFPB, if repairs weren't done properly or you think you were ripped off, you can complain to your local law enforcement agency and your state attorney general, complain to the state or local agency that licenses or regulates contractors, and contact a lawyer about a lawsuit for damages; and if you borrow money for repairs, shop for the best lender yourself instead of just taking the contractor's referral.

   Sources 6 · How can I find and work with contractors to rebuild after a disaster?: 'Make a complaint to your local law enforcement agency and your state attorney general'; 'Make a complaint to the state or local agency that licenses or regulates contractors'; 'Contact a lawyer and consider bringing a lawsuit for damages'; 'Don't just take a contractor's referral without shopping for other lenders and checking references' · Checked October 17, 2026

10. According to the CFPB, after a disaster contractors may come to your door offering repairs; be wary of door-to-door contractors, unsolicited 'opportunities' and high-pressure tactics to make you decide fast; be suspicious of 'limited time only' deals, claims that material prices will rise and offers to move you to the front of the line; ask for identification and a contractor's license and call the organization to confirm; never pay by wire transfer, gift card, virtual currency or cash, because it can be harder to get your money back; wait to make the final payment until the work is done to your satisfaction; and if you think you faced price gouging, contact your state attorney general.

    Sources 7 · How do I avoid scams and fraud after a disaster? (reviewed September 5, 2025): 'contractors and others may arrive at your door offering to help with home repair'; 'Beware of contractors going door-to-door and people offering unsolicited'; 'high-pressure tactics to force you to make a snap decision'; 'limited time only'; 'Be suspicious of anyone offering to move you to the front of the line'; 'Can I see your identification and contractor's license?'; 'call the organization the person claims to work for to confirm'; 'Never pay by wire transfer, gift card, virtual currency, or cash'; 'make the final payment until the work is done to your satisfaction'; 'contact your state attorney general' · Checked October 17, 2026

11. According to the CFPB, if a salesperson or contractor offers you a PACE loan for a repair or energy-efficiency upgrade, understand the risks before signing: you repay it through your property taxes, which go up, sometimes a lot; you could lose your home in a tax sale; most lenders will not refinance your mortgage if you have a PACE loan; salespeople may claim, without having to prove it, that the upgrades 'pay for themselves'; and you may have limited ways to dispute the work once you sign.

    Sources 8 · I am considering a PACE loan for home improvements. What should I keep in mind before signing up? (reviewed September 11, 2024): 'If a salesperson or contractor offers you a PACE loan'; 'You will have to make payments for PACE loans through your property taxes'; 'For some homeowners, the increase can be large'; 'This could also put you at risk of losing your home through a tax sale'; 'Most lenders will not refinance your mortgage or give you a new mortgage if you have an outstanding PACE loan'; 'Salespeople may tell you— but are not required to prove— that the proposed improvements'; 'Limited means to dispute the work or costs once you sign up' · Checked October 17, 2026

12. According to the CFPB, be wary of contractors who suggest a reverse mortgage to pay for home repairs, because it may be a scam, and don't let yourself be pressured.

    Sources 9 · What is a reverse mortgage? (reviewed August 28, 2026): 'Beware of contractors who approach you about getting a reverse mortgage loan to pay for repairs to your homes. It may be a scam'; 'Don't let yourself be pressured into getting a reverse mortgage loan' · Checked October 17, 2026

13. Under the FTC Cooling-Off Rule (16 CFR §429.0), a door-to-door sale is a sale of goods or services for personal, family or household purposes in which the seller solicits you in person and you agree to buy somewhere other than the seller's place of business, such as your home, even if you invited the seller, with a price of $25 or more at your home or $130 or more elsewhere; it excludes, among others, sales you negotiated earlier at the seller's store, real estate and insurance sales, credit that already carries a federal right of rescission, and bona fide personal emergencies where you asked for the service and waived cancellation in a handwritten note; and a business day is any day except Sunday and federal holidays.

    Sources 10 · 16 CFR §429.0(a) ('the seller or his representative personally solicits the sale, including those in response to or following an invitation by the buyer'; 'sales at the buyer's residence'; 'a purchase price of $25 or more if the sale is made at the buyer's residence or a purchase price of $130 or more if the sale is made at locations other than the buyer's residence'; 'in the course of a visit by the buyer to a retail business establishment'; 'accorded the right of rescission by the provisions of the Consumer Credit Protection Act'; 'bona fide immediate personal emergency'; 'in the buyer's handwriting'; 'Pertaining to the sale or rental of real property, to the sale of insurance'), (b) ('primarily for personal, family, or household purposes') and (f) ('Any calendar day except Sunday or any federal holiday') · Checked October 17, 2026

14. Under the Cooling-Off Rule (16 CFR §429.1), in a door-to-door sale the seller must give you at signing a complete contract or receipt in the same language used to sell to you (for example, Spanish), with the date and the seller's name and address, and the statement that you may cancel before midnight of the third business day; it must give you two copies of a form titled 'NOTICE OF CANCELLATION' or 'NOTICE OF RIGHT TO CANCEL' and tell you orally about your right to cancel; to cancel, you mail or deliver a signed and dated copy of the notice or another written notice; the seller must refund all payments within 10 business days of receiving it; and it may not misrepresent your right to cancel or make you waive it.

    Sources 11 · 16 CFR §429.1(a) ('in the same language, e.g., Spanish, as that principally used in the oral sales presentation'; 'You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction'), (b) ('NOTICE OF RIGHT TO CANCEL'; 'NOTICE OF CANCELLATION'; 'within THREE BUSINESS DAYS from the above date'; 'mail or deliver a signed and dated copy of this Cancellation Notice or any other written notice'), (d) ('any waiver of any of the rights to which the buyer is entitled'), (e) ('Fail to inform each buyer orally'), (f) ('Misrepresent in any manner the buyer's right to cancel') and (g) ('within 10 business days after the receipt of such notice'; 'Refund all payments made under the contract or sale') · Checked October 17, 2026

15. Under Regulation Z (12 CFR §1026.23), if a loan places a security interest (lien) on your principal home, you may cancel it until midnight of the third business day after signing, delivery of the notice or delivery of the material disclosures, whichever is last; you cancel in writing; and during that period no money may be disbursed (except into escrow), no services performed and no materials delivered.

    Sources 12 · 12 CFR §1026.23(a)(1) ('a security interest is or will be retained or acquired in a consumer's principal dwelling'), (a)(2) ('by mail, telegram or other means of written communication'), (a)(3)(i) ('until midnight of the third business day following consummation') and (c) ('no money shall be disbursed other than in escrow, no services shall be performed and no materials delivered until the rescission period has expired') · Checked October 17, 2026