A Brampton woman says she feels completely robbed after losing $28,000 to a contractor who vanished after receiving an advance payment for a basement renovation project.
The Costly Contract
The Ontario resident hired the contractor and signed a formal agreement for the construction of a basement apartment. Trusting the signed contract, she provided a substantial upfront payment, a common practice that unfortunately left her vulnerable.
After receiving the payment, the contractor failed to return to the job site and became unresponsive. The homeowner was left with an unfinished basement and a significant financial loss, highlighting the risks associated with paying large sums before work is completed.
A Growing Problem for Homeowners
This incident is not isolated. Contractor fraud and renovation scams are persistent issues across Canada, particularly in active real estate markets. Scammers often use high-pressure tactics and promises of quick, cheap work to secure large deposits before disappearing.
The case underscores the critical importance of verifying contractor credentials and being cautious with advance payments. Consumer protection agencies consistently warn against paying more than a small deposit before work commences.
Protecting Yourself from Renovation Fraud
Experts recommend several steps to avoid falling victim to similar scams. Always get multiple quotes for any major home improvement project. Research the company thoroughly, checking for reviews and a verifiable business address.
Never pay the full project cost upfront. Instead, establish a payment schedule tied to the completion of specific project milestones. A reputable contractor will not demand full payment before starting work.
This Brampton woman's experience serves as a stark reminder for all homeowners to exercise due diligence when hiring contractors for renovation work.
