Arizona Attorney General Kris Mayes warned on Apr. 14 that homeowners seeking to build Accessory Dwelling Units (ADUs) are being targeted by a growing pattern of construction fraud. The scams have resulted in families losing significant amounts of money, with some losses reaching up to $250,000 after paying companies that collected large upfront payments but failed to begin or complete the work.
The warning is important as more residents look to add casitas, guest houses, or backyard rental units for family or rental purposes. Fraudulent contractors often present themselves as experts and collect deposits before stalling on promised work. They may also fail to obtain required permits and use another contractor’s license without authorization.
According to the Arizona Attorney General’s Office, “They make big promises,” presenting polished proposals and claiming expertise before collecting money from homeowners. Victims report that “large deposits were cashed within days of signing” while construction was repeatedly delayed. In many cases, city offices confirmed no permits were ever requested despite contractor assurances.
Mayes’ office advises residents to watch for red flags such as out-of-state companies claiming local operations, requests for large upfront payments via cash or digital means like Zelle or cryptocurrency, pressure tactics discouraging multiple quotes, and business addresses lacking a visible local presence. The office urges consumers to hire only licensed contractors in good standing with the Arizona Registrar of Contractors (ROC), get multiple written estimates detailing all terms and costs, avoid paying full amounts upfront, use credit cards when possible for added protection against fraud, and thoroughly research companies online.
The Arizona Attorney General’s Office functions as the state’s primary legal entity offering advocacy and protection for residents statewide according to the official website. It addresses issues such as elder abuse and civil rights violations through its cold case unit according to the official website, participates in federal lawsuits supporting fair housing initiatives according to the official website, and delivers comprehensive legal services across Arizona according to the official website.
Kris Mayes is Arizona’s 27th attorney general and is noted as the first mother in this role according to the official website. Residents who believe they have been victims of these scams are encouraged by her office to file complaints with state agencies including ROC at roc.az.gov/file-complaint or call (602) 542-1525; report incidents through BBB Scam Tracker; or contact the Attorney General’s Office directly at azag.gov/consumer.
