Scammers are using the internet to identify homes that are either for sale or vacant, and they’re getting more sophisticated in their tactics. Roofing contractors are being targeted during one of the most vulnerable times in a property's lifecycle: when it's listed for sale.

If you're a roofing professional, this article is essential reading. Several of our member contractors have recently been caught in fraudulent schemes related to real estate transactions. These scams are specifically designed to exploit the tight timelines, complex communications, and urgency that often accompany homes on the market.

Warning: Real Estate Scams Are Preying on Roofing Contractors

Scammers are increasingly impersonating clients associated with homes for sale (or vacant)—often properties owned by Limited Liability Companies (LLCs). While these leads may appear legitimate, they typically involve communication restricted to email or text, pressure to act quickly, and a client who disappears once the work is underway or complete.

In many cases, the actual property owner or real estate agent has no knowledge of the roofing work, leaving contractors unpaid and with limited recourse.

This blog post outlines two real-life scam scenarios, explains the likely end game of these schemes, and provides actionable strategies to help you protect your business before it’s too late. 

- Case 1: The Disappearing Client Scam

What began as a standard roofing lead turned into an expensive lesson. The client claimed to be a relative of the homeowner and requested a roof replacement for a house listed for sale.

Step-by-Step Breakdown

1. Site Visit and Quote
The property appeared active, with other trades on-site. An estimator provided quotes for both standing seam and shingle roofing. The client selected the shingle option.

2. Contract and Project Start
The contract was signed, a pre-invoice was issued, and work commenced. By the time the project reached 95% completion, no payment updates had been received.

3. The Vanishing Act
After multiple unsuccessful attempts to reach the client, the phone number provided was disconnected. A real estate agent then contacted the roofing team, urgently requesting gutter installation before the scheduled closing the next day—yet neither the seller’s nor buyer’s agent was aware of any roofing agreement.

4. The Discovery
Further investigation revealed that the supposed client had no connection to the property. The situation mirrored a known scam involving overpayment fraud, where a scammer sends a check that overpays, requests a refund for the difference, and then the original check bounces—leaving the contractor liable for the entire amount.

Outcome

The roofing work was completed to avoid jeopardizing the real estate closing, despite the client disappearing during the project. While this action maintained good relations with the agents involved, it resulted in nonpayment for the job.

This was a strategic decision, but not one that is universally recommended. Risk should always be carefully assessed, and payment secured before proceeding whenever possible.

- Case 2: The LLC Property Scam

In a separate wave of fraud, five roofing contractors in the metro area reported being scammed through properties listed for sale and owned by LLCs.

How It Happened

• Each contractor received a reroofing estimate request via email or text.
• After completing the work, the LLC owners denied authorizing any roofing services.
• They refused to pay, claiming they had no knowledge of the person who signed the contract.
• One company successfully recovered funds by filing a mechanic’s lien before the property sold.
• The others suffered financial losses due to poor timing or uncertainty about legal options.

- What’s the End Game?

While the initial loss may be limited to the cost of labor and materials, the real danger could come after the work is completed.

One prevailing theory suggests that once the roof is installed, the scammer may re-engage the contractor under the guise of finally issuing payment. They often ask for bank routing information to "process a direct deposit" or "expedite payment."

If that information is provided, the contractor could face an even greater loss—falling victim to bank fraud, identity theft, or unauthorized withdrawals, leaving the business out more than just the cost of a roof.

This adds a second layer of deception that goes beyond missed payments—it becomes a financial and data security threat to the company itself.

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- How to Protect Your Roofing Business From Real Estate Scams

These scams are becoming more frequent. Implement the following safeguards to protect your company:

These scams are becoming more frequent. Implement the following safeguards to protect your company: - 1. Verify Property Ownership

• Use county property records to confirm who owns the home.
• For LLC-owned properties, verify the registered agent via your state’s Secretary of State website.
• When in doubt, contact the listing agent to validate the scope of work and authorization.

2. Avoid Text-Only or Email-Only Communications

Do not move forward on a project without at least one verbal or in-person conversation. Direct interaction is often a strong indicator of legitimacy.

3. Be Alert to Overpayments

If a client offers to pay more than the agreed-upon amount and requests a refund, treat it as a red flag. Never issue refunds unless the original payment has fully cleared.

4. Never Refund Using Gift Cards

Gift cards are virtually untraceable and commonly used in scams. Any request for a refund via gift cards should immediately raise concern.

5. Consider Filing a Mechanic’s Lien

If you suspect fraud or experience nonpayment, a mechanic’s lien may provide a legal pathway to recover funds. Be aware of your state’s lien laws and filing deadlines.

6. Document Everything

Keep detailed records of all communication, signed contracts, change orders, and invoices. Transparency and documentation can protect your interests if a dispute arises.

7. Use Secure Payment Methods

ACH or wire transfers are more secure than checks. If you must accept a check, wait until it has cleared completely before beginning or continuing any work.

8. Never Share Bank Details Without Verification

Never provide routing or banking information without confirming the identity of the person making the payment through a verified, trusted source.

9. Report Suspected Fraud

If you believe you’ve been targeted, file a report with local law enforcement. Your report may help uncover a broader scam and protect others in the industry.

- Final Thoughts

These scam cases highlight a harsh reality: even seemingly legitimate jobs on homes for sale can be fraudulent. But with proper verification, open communication, and legal awareness, contractors can protect themselves from becoming victims.

These scams are evolving—from simple unpaid labor and materials to more complex financial fraud. Stay vigilant, stay informed, and take every precaution to verify the legitimacy of new clients.

Have you encountered a similar scam or have advice for your fellow contractors? Share your experience with CRA using our contact us page. By sharing knowledge, we strengthen the entire community.

For further reading on related contractor fraud, see this warning to real estate brokers about an insurance claim roofing scam and another for a concrete driveway contractor.

Article updated 5/06/2025 at 2:30 pm.