Inquire Before You Hire

Carolyn Ballou from the Department of Consumer Affairs spoke to Public Issues Forum this morning about the “Inquire Before You Hire” program. REALTORS® make many referrals to clients, for all sorts of services. And it is important for a REALTOR® to verify the individual they are sending their client to have the appropriate license.

Individuals may not be licensed because they are unfamiliar with the process, language barriers may exist, or they may be unable to afford the fees. There are also more sinister reasons someone may not have the required license. They may lack the necessary education, they may not pass a background check, or their license may have been previously revoked or suspended.

Unlicensed people fail to pay taxes, they don’t provide workers necessary insurance, and may not pay minimum wage. This underground economy negatively impacts community services due to the decreased tax revenue. And, they are able to underbid licensed individuals who pay their fair share of taxes and wages.

These individuals have the capacity to harm the reputation your business depends on. In Sacramento, a man posing as a contractor took the entire life savings of an elderly couple and ran. He left them $250,000 in the hole and their house in ruins. In Los Angeles an unlicensed electrician faces criminal charges for allegedly installing hidden cameras in the bathrooms of some of his female clients. And an unlicensed tree trimmer in Santa Barbara County scammed residents out of more than $10,000, as he targeted elderly residents asking for a down payment for work and not returning to do the job.

As REALTORS® you represent a higher ethical standard and work hard on behalf of your clients to grow your reputation and business. Don’t let an unlicensed individual harm your good name. To verify your referrals, or report unlicensed activity please visit http://www.inquirebeforeyouhire.ca.gov/ or call 1-877-786-7852.

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