Risks of Hiring an Unlicensed Contractor

Buying a home is one of the biggest milestones in life—but it doesn’t end at closing. Whether you're planning renovations, making safety upgrades, or hiring someone to fix a few surprise issues, there’s one step every New Mexico homeowner should take before starting work: verify that your contractor is licensed.

The New Mexico Regulation & Licensing Department (RLD) has launched the Rebuilding New Mexico initiative to help homeowners—especially new ones—make smart, safe decisions when hiring professionals for any kind of construction, electrical, plumbing, or manufactured housing work.

Why does licensing matter? Licensed contractors are trained, tested, and held accountable to state standards. They’re required to follow the rules that keep your home safe and up to code.

The Rebuilding New Mexico page makes it simple. You can:

• Check if a contractor is licensed through state databases.

• Report unlicensed work if something doesn’t seem right.

• www.rld.nm.gov/rebuilding-new-mexico/

If you're settling into your new home and planning to make changes—big or small—this resource is a must. It’s there to protect your investment, your safety, and your peace of mind.

Unlicensed contractors often leave behind more than just unfinished work—they can create serious risks for homeowners. Warning signs include vague or missing contracts, requests for large cash payments up front, refusal to provide proof of licensing or insurance, and pressure to skip permits or inspections. If a contractor avoids written agreements or can’t be found in the state’s license lookup system, that’s a red flag. Trust your gut—if something feels off, it probably is.

Before you make that first call for repairs or remodeling, take a moment to verify the license. It’s a small step that makes a big difference.

For questions please call: 

Construction Industries Division: 505-222-9800

Manufactured Housing Division: 505-365-3429