Important Considerations Before Signing a Contract
by Patrick Schurr | Contributor
Follow these guidelines to safeguard yourself against dishonest contractors and inadequate repairs.
PART ONE: BE WARY OF UNINVITED SALES VISITS!
Exercise caution when a salesperson shows up at your home unexpectedly. Two prevalent sales tactics often linked to home improvement scams include:
– The salesperson claims they “were in your neighborhood and noticed that you needed siding, storm windows, or some other improvement.”
– The salesperson states they “just completed work in your neighborhood” and have “surplus building materials that are just enough to repave your driveway or reshingle your roof.”
Both of these approaches should raise alarm bells. Contractors typically do not canvass neighborhoods to find homes in need of repairs in an efficient manner.
While it’s common for contractors to place signs in yards where they are working to attract nearby clients, they usually do not go door-to-door selling leftover supplies. It’s more typical for them to use excess materials on their next legitimate job.
Home improvement scams often thrive in the aftermath of disasters, particularly after severe storms like those recently experienced in Plano and North Texas. While some genuine repair specialists may go door-to-door in these situations, many con artists take advantage of the chaos.
PART TWO: RESEARCH YOUR CONTRACTOR
Take the necessary time to carefully choose the professional who will work on your home. Opt for a contractor with a verified physical address. While many in construction use cell phones, it is crucial to ensure you can locate anyone who works on your property if issues arise.
Seeking bids from multiple contractors for any planned work on your home is advisable. Obtain these bids in writing, focusing on specifics about what will be accomplished.
Ask for references. If you hire a professional who requires a state license (like an electrician), reach out to the licensing agency to verify their credentials and check for any complaints.
PART THREE: ENSURE EVERYTHING IS IN WRITING
Most home repairs and renovations should be governed by a written contract between the homeowner and contractor. Authentic businesses typically want a contract for their protection, and a solid contract should provide safeguards for the homeowner as well.
DO NOT sign a contract that contains any blank spaces. There are instances where these blanks get filled in later, and the new terms may not be beneficial to you.
DO NOT sign a contract until you have read and comprehended every provision. It can sometimes be challenging to extricate yourself from a signed agreement.
Make sure all promises made to you are included in the written contract. Insist on a document that clearly outlines what the contractor will do, the starting date for the work, and the completion date. Ensure it includes all the details promised by the salesperson or contractor, along with the costs for special orders and materials.
Retain copies of all documents you sign at the time of signing.
PART FOUR: ESSENTIAL ELEMENTS OF THE CONTRACT
Any contract you agree to for work on your property must feature the following warning adjacent to your signature line:
“Important Notice: You and your contractor are responsible for fulfilling the terms and conditions of this contract. If you sign this contract and fail to adhere to its terms, you may forfeit your legal ownership rights to your home. Understand your legal rights and obligations.”
When you sign a contract for home improvements, the contractor can legally place a lien on your property, provided they comply with the Texas Property Code. If you sign a contract that includes the aforementioned language and later fail to make payments, you risk the company enforcing their lien. Additionally, if your contractor neglects to pay subcontractors and suppliers, YOU may bear responsibility, even if you did not contract directly with them.
If the cost of your homestead improvement exceeds $5,000, Texas law mandates that the contractor deposit your payments into a construction account at a financial institution. Request written proof of this construction account’s existence. Keep track of the deposits and disbursements made to subcontractors, laborers, and vendors.
Just that simple, right?!
Patrick Schurr, a partner with the law firm of Scheef & Stone, L.L.P., represents both large and mid-sized corporate clients as well as individuals, including financial institutions, manufacturers, distributors, and construction industry companies. He handles complex commercial litigation and bankruptcy-related litigation, in addition to representing clients in contract disputes and collection cases in Texas state and federal courts, focusing on trials and pre-trial settlements. He earned his J.D. from Texas Tech University in 1989 and his B.A. from Vanderbilt University in 1986.
For inquiries or consultations, reach Patrick at 214.472.2136 or patrick.schurr@solidcounsel.com.
