The average homeowner doesn’t realize how exposed they are until something goes wrong. Most projects start with a handshake and a check. There’s no neutral third party, no escrow holding the money, and no mediation clause in the contract. If things fall apart, both sides lose—money, time, and reputation.

Even when licenses and insurance are mentioned, they’re rarely verified. Many homeowners assume the state or city has already vetted contractors. In reality, that burden falls entirely on the consumer, who usually has no idea where to start.

And from the contractor’s side, there’s an equally dangerous trap: verbal agreements followed by a written contract presented at the last minute. Too many contractors negotiate verbally, then sign the client’s paperwork without a legal review. It feels efficient in the moment—but when things go wrong, they discover hidden clauses, payment terms, and liability traps they never agreed to. Preparation, not speed, is the real safeguard.

When verbal agreements aren’t honored, the response you’ll almost always hear is, “Do you have that in writing?” Those six words end most disputes before they start—and they’re a harsh reminder that if it isn’t written down, it didn’t happen. Documentation is your only protection when memories fade or intentions shift.