How Can Toronto Homeowners Protect Themselves From Being Pulled Under With A Sinking Contracting Company?
Toronto Homeowners Should Never Pay For Work Upfront
Some recent news out of the United States has shone light on two important and financially dangerous aspects of having work done around or on your home. One issue is that if a company is paid upfront for all of the work, there is little recourse for homeowners if the company goes out of business before the work is completed. The other is that contractors usually pick up materials on credit with companies and use your home as collateral. This way when they don’t pay their tab, the supplier can come after homeowners, and sometimes to the tune of thousands of dollars.
When working with contractors, Toronto homeowners should do their research.
One roofing company shut down in the middle of several projects after completing only half of the work but getting all of the pay, while a swimming pool installer did the same, but now homeowners are being targeted by subcontractors looking for payment for services rendered, even though the homeowners already paid the company in full. They’ve also received letters from concrete companies saying there’s a pending lien on their home for supplies, despite the fact that they also paid for those very same supplies already.
Never pay for a full contracting or renovation job completely up front. A deposit is usually necessary, but avoid any company or individual that requires a complete payment upfront. Do your research on companies before you hire them, and ask for references. Most importantly, follow up on those references and ask the company’s other clients how well the project went, what the workers were like and whether there were any unexpected problems or fees and how those issues were resolved.
How Can Toronto Homeowners Protect Themselves From Being Pulled Under With A Sinking Contracting Company? is a post from: Toronto Real Estate Updates