Homeowners should be aware of ‘green scams’

Millions of homeowners are trying to save energy, but some are unwittingly ripe for a rip-off.

Q. A young man came to our door and said he could install a complete solar-panel heating system on our roof for $4,500, adding that the system “would pay for itself” within four years through savings on our energy bills and federal tax credits. It sounded like a good deal to us, especially because we’re doing our best to save the environment, so we signed a contract and gave him a $1,000 check as a down payment for the work. The check was cashed immediately, but no one ever showed up to do the installation. We tried to call the man, but his phone is disconnected, and then tried to visit his office, but found that the address is nonexistent. What can we do now?

A. Not much. You could sue the young man and his company in small claims court and win, but your chances of actually collecting the money are slim: Even if you find the guy (assuming that he gave you his real name), he is probably broke and cannot pay you back.

It sounds as if you have become the latest victim of the growing number of “green” scams, in which fly-by-night contractors or salespeople line their pockets by targeting environmentally conscious homeowners.

There are a number of different green scams going on today, the Federal Trade Commission states. The one you apparently fell for is popular among con artists who offer to make energysaving improvements but never deliver. Homeowners should ask for references before signing a contract for such work and, more importantly, call the state’s licensing board to ensure that the contractor is legitimate and also contact the local Better Business Bureau to check out his record.

Another green ruse is based on the energy-saving audits offered by many utility companies across the nation. In such a scam, one or two people claiming to be from a local utility may show up at your door and offer a free audit: They may just want to case your home for a future burglary, or one might distract you while the other steals your jewelry and other small valuables. Protect yourself by demanding to see their identification cards, then calling the utility to verify their legitimacy before letting them inside your home.

Also be wary of official-looking computer emails from companies, local utilities or even the Department of Energy that offer free services or rebates if you fill out a simple form or agree to take an online survey. Many such emails are generated by scamsters seeking information that will enable them to steal your identity, while others are designed by hackers who want to infect your computer with a virus.

Q. We live in a townhome development. One of the directors of our homeowners association recently resigned because his employer transferred him out of town, and the remaining board members appointed a first-class jerk to take his place instead of calling for a vote by all homeowners to find a replacement. Was this action legal?

A. Probably, although you would need to check your HOA’s bylaws for a definitive answer.

The bylaws of most associations permit their boards to appoint a replacement to a seat that suddenly becomes vacant. That id because calling for a special election could be costly and time-consuming.

Haul out your copy of the HOA’s bylaws and reread it. Complain directly to the board if your interpretation of the rules suggests that the directors acted improperly. If you are not satisfied with the answer, contact your state’s department of real estate or similar regulatory agency for help.

Q. We accepted an offer for our home two weeks ago, after three months of marketing it for sale. Now we have asked our real estate agent to take our “for sale” sign down because we’re sick of looking at it and people are still knocking on our door and asking to take a tour. The agent says we should leave the sign up. What do you think?

A. You should probably leave the sign up for at least two or three more weeks. A proposed sale can fall apart for any number of reasons, especially now that banks have recently tightened their loan requirements. Keeping the sign up for a while longer could help you secure a second or third “backup” offer, which would come in handy if your current buyer cannot get a mortgage.

It is rude for potential buyers simply to hammer on a seller’s door instead of calling first to make an appointment. If it is a serious problem, ask your agent to put a small “sale pending” or “do not disturb occupants” sign atop the larger for-sale sign. The smaller sign likely will discourage pesky lookie-loos from bothering you but will not scare off serious buyers.

Send questions to David Myers, P.O. Box 4405, Culver City, CA 90231-2960, and we’ll try to respond in a future column.