Can a contractor take your deposit and go to jail?
Laws vary by state but here in Texas there is no licensing for contractors. But, taking money while providing no services has been prosecuted as fraud. It comes across the news here every once in a while that a crooked contractor has been sentenced to jail time, probation, and/or paying restitution.
Can you get your money back from a bad contractor?
At the least, those unhappy homeowners are victims of contractor incompetence, and at worst they’re victims of outright fraud and failure of performance. Many homeowners consider contractor failure and their financial losses part of being a homeowner, but others choose to go after the contractor to recover their money.
When do you get your 10% back from a contractor?
In some markets there is a convention to hold back 10% for up to 30 days. That allows time for issues to surface and call back the contractor to get them sorted. The final 10% is released when the customer signs off that the work is done.
Can a contractor carry the cost of a job?
I keep banging the gong, that smaller contractors can not afford to carry the cost of your job (depending on the size and value) And the ones that can will cost you more…that’s how they get to be that big. They collect more of your money per job than the lean running guys.
Can a contractor take the money and run?
They say they’re civil, not criminal. Because of that and because builders are not licensed in Texas, take-the-money-and-run contracting is an easy crime to get away with. Everyone just moves on.
What to do if contractor Won’t Pay Up?
If the contractor won’t pay up, then you get a hearing. You can usually represent yourself at the hearing. You don’t need a lawyer — but be thorough. If you prove your case, the state gives you the cash. Different states have different caps on the amount of money they will give you.
Can a contractor Cheat you Out of money?
Bad contractors don’t only cheat their clients out of money. They also cheat them out of time. Part of a contractor’s bid or estimate should always stipulate the intended time frame for a project. This doesn’t have to be a dead accurate number, and it can contain far more leeway with bigger projects.
Is it bad to pay a contractor upfront?
It is an extremely stupid to offer to pay a contractor the entire amount owed upfront. If you pay a contractor upfront, they can end up not doing a good job, or some will even take your money and disappear. I have actually seen some real estate traders on Youtube teaching people to do this in order to save money.