Contractor License Borrowing in Douglas County, Colorado: What Homeowners Need to Know

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What Is License Borrowing?

License borrowing happens when an unlicensed contractor uses another contractor’s license to pull permits, bid on work, or perform construction. In Colorado, this practice is illegal and can put homeowners at serious risk of unsafe work, financial loss, and liability exposure.

Simply put: If the person doing the work isn’t properly licensed, your project — and your protection — are in jeopardy.

Why Is License Borrowing a Big Problem?

  • Unsafe or non-code-compliant work that can compromise your home’s safety.
  • No warranty protections if the work is defective.
  • Insurance companies may deny claims related to unlicensed work.
  • Permits can be revoked, stopping your project and causing fines.
  • You, the homeowner, could be held financially liable for damages or injuries.

Important: Colorado law treats license borrowing as fraud, with potential for heavy fines and even criminal prosecution.

Watch: Why Contractor Licensing Matters


How to Verify a Contractor’s License in Douglas County

Before you hire any contractor for your home project, it’s crucial to verify that they are properly licensed. In Douglas County and cities like Castle Rock, you can easily check licensing records online to ensure your contractor is legitimate and authorized to perform the work.

Be sure to search using both the contractor’s personal name and company name, as licenses can be listed under either depending on how they registered with the county or city.

1. Check Douglas County Contractor Licensing

Douglas County requires contractors to be licensed for most types of construction and remodeling projects. You can verify a contractor’s license quickly using the county’s official lookup tool:

Search by company name, license number, or contractor type. Ensure the license is active, valid for the type of work, and free from disciplinary actions.

2. Check Town of Castle Rock Contractor Licensing

If your project is located within the Town of Castle Rock, contractors must also be licensed through the city. Verifying their city license is a critical extra step to ensure full compliance:

Use the “Contractor Search” feature to confirm that your contractor is approved for the type of work you need. Always ensure that licenses are current and active.

Warning Signs of License Borrowing

  • The contractor asks you to pull the permit yourself.
  • The company name on permits doesn’t match the contractor you’re hiring.
  • The contractor claims they are “working under another license.”
  • They provide vague or incomplete license information.
  • The bid price seems unusually low compared to competitors.

Pro Tip: Always double-check license details — don’t just take verbal assurances. Verify independently through the official portals.

Where License Borrowing Commonly Happens

Many homeowners find contractors through online platforms, but not all listings are trustworthy. License borrowing — and outright unlicensed contracting — often occurs in:

  • Facebook Groups and Marketplace
  • Nextdoor neighborhood posts
  • Craigslist home services listings
  • Local online classifieds
  • Flyers posted in coffee shops, parks, or community centers

While many legitimate contractors advertise through these channels, it’s extremely important to always verify licensing before hiring anyone. Protect yourself by checking:

Remember: A flashy ad or a friendly conversation doesn’t guarantee a contractor is properly licensed. Always verify first using official tools.

What to Do If You Suspect Contractor License Fraud

If you suspect that a contractor is working without the proper license or using another contractor’s credentials, it’s important to act quickly to protect yourself and your property.

  • Stop the work immediately if it is safe to do so.
  • Document everything — take photos, save contracts, collect invoices, and keep all communication records.
  • Report the contractor to the Douglas County Building Division or the Town of Castle Rock Building Department.
  • File a complaint with the Colorado Attorney General’s Office through StopFraudColorado.gov.

In some cases, you may also want to consult with an attorney who specializes in construction law to understand your options for recovering damages or completing your project safely and legally.

Final Thoughts: Protect Yourself and Your Investment

Hiring a properly licensed contractor is the foundation of a successful, safe, and legally protected home improvement project. License borrowing is more common than you might think — but with the right steps, you can avoid the risks and hire with confidence.

Always take a few minutes to verify licenses at the state, county, and town level. Protect your home, your family, and your financial investment by choosing qualified, licensed professionals for every project.

Frequently Asked Questions

Is it illegal to use someone else’s contractor license in Colorado?

Yes. License borrowing is considered fraud under Colorado law and can result in misdemeanor or felony charges, civil penalties, and license revocation.

How can I tell if a contractor is using a borrowed license?

Warning signs include being asked to pull the permit yourself, mismatched names on permits, or vague answers when you ask about licensing. Always verify through official state, county, and town portals.

What should I do if I already hired a contractor and suspect they aren’t licensed?

Stop the work if possible, document everything, and report the situation to the Douglas County Building Division, the Town of Castle Rock, and the Colorado Attorney General’s Office through StopFraudColorado.gov.

Do handyman services require a license in Douglas County?

It depends on the scope of work. Minor repairs often don’t require a license, but anything involving structural changes, electrical, plumbing, or mechanical work typically does. Always verify before hiring, even for small projects.