Arizona Attorney General Kris Mayes is warning residents about an increase of construction scams targeting small guest houses and casitas commonly built in backyards.
Families looking to build a guest house or casita should exercise caution as reports of construction scams increase. The scammers are accepting thousands of dollars for upfront payments, despite never breaking ground on the project.
AG spokesperson Richie Taylor says the fraudsters often make polished proposals to gain the trust of victims.
“Construction or home remodel is one of the biggest purchases that a family can make. Oftentimes, they tap into their home equity line of credit in their primary home to pay for a construction purchase like this," Taylor said.
Taylor gave some advice to avoid being scammed.
“Never pay upfront, never be pressured by someone who is promising to fulfill a project like this really quickly. Do your research, get multiple written estimates from different contractors, and use a credit card or even a construction loan, which you can pay over time as deadlines have been met so that you're not out the full amount," Taylor said.
Taylor said the Attorney General’s Office has received a spike in these scams over the last few months — possibly due to the increasing popularity of casitas and guest houses.
Taylor said victims should report these scams to the Registrar of Contractors at roc.az.gov, and file a report with local law agencies.
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