Who to contact to check for liens, etc.
Annette Holbrook(z7a)
8 years ago
last modified: 8 years ago
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Annette Holbrook(z7a)
8 years agoRelated Discussions
GC Threatening Lien on Property
Comments (16)I don't think a lienholder can demand foreclosure on the property unless the amount owed meets or exceeds the value of the property itself. I'd imagine your property is worth much more than what you owe the guy. If its installed and you accept it, then you should pay for it. To do otherwise is akin to theft in my mind. No one should ever hire a contractor who is willing to work without a contract. Doing such is a mandate for a disaster, either for the contractor, the homeowner or both. Here in my state there is a limit on the amount of claim that can go to small claims court, above that the matter is taken to higher court which oftentimes requires an attorney to represent you. Every contract should have a very clear change order procedure and it should be followed. Every time I've had a customer not want to honor my change order procedure, they've been someone out to put the screws to us. Not to say that you are, but I am amazed that any experienced contractor would not give you an accounting of the change requested and have a signed agreement on it prior to proceeding. Also, $50 an hour is cheap. We bill at $65 for Time and Materials work, plus an upcharge for management or other fixed costs. Change orders are always Time and Materials and I will charge an additional fee for the cost of extra work, compiling quotes from subs, extra design work, engineering or if the customer needs an incentive to cool their heels and get back on earth. Also, you talk of delays the project, but did you consider the extra time involved in the changes and how they would effect the overall project schedule? The contractor's cavalier 'oh not much' response sounds like you two didn't do a sit down and really hash each portion of the project out, including changes. If the guy is willing to give you a clear accounting of the costs and labor, you are happy with the work (which apparently you are as you haven't complained), then pay up and take it as a lesson learned....See MoreContractor holdback and lien releases?
Comments (7)I can't thank you enough for these responses! weissman--Thank you for confirming what I thought: the contractor holdback is typically a percent of value for the entire job. And yes, momtotwinboys, I am very unsure how I'm supposed to know who all to request a lien release from?? I was thinking the same thing that I know the "big" subs--plumbing/electrical/HVAC/drywall etc-- but surely there are other folks too and what if one of these guys have "sub subs" and what if they come later saying they haven't been paid? tracie.erin-thank you for sharing the process for BofA releasing your funds, that was very helpful. It's easier when the bank is the "bad" guy requiring the holdback and lien releases and removes you from having to negotiate anything with the contractor. I've read to tie payments to milestones-our contractor intends to bill monthly for work that has been completed and really pushed back at the idea that I would hold back 10-15% of that because the work would be complete and he would be owed this. (and momtotwinboys-I couldn't imagine negotiating with our contractor that he'd receive his final 7.5% of the job 30 days after completion. How did you swing that?) I worry if I just try to just hold back something out of a final payment,it won't be enough of an incentive to keep him on the job if anything goes wrong...? Can anyone else offer feedback about what your lender requires and/or what you've negotiated with your contractor about the holdback? I'm learning a lot-thank you!...See MoreIs a lien only for money owed or.........
Comments (11)I am not doubting what you were told. Even if everything you say is true they still have the right to charge you. You can take them to court and have them change, you might get damages from them, and you might get them to lift any charges they have levied as unreasonable. But they still have the right to charge you if you signed the deed covenant. Sounds like you have a crappy HOA. You might well be able to challenge them in court and win. But your right to challenge the things in court exists in tandem with their rights to charge you in the first place. You have this idea that covenants can't overide city or state laws but it is more complicated than just yes or no. Courts have found both ways on that. Courts have often upheld that both noncompete agreements and agreements to indemnify others are allowed, while at other times they have struck them down. Your HOA agreement probably has an indemnity clause in it, that prohibits you from taking action directly against HOA representatives acting on behalf of the HOA. Furthermore, your deed covenants may have already assigned certain rights to the HOA that would normally be assigned only to an owner. Those may be found to be unenforceable at court but will likely require a court battle. Even if you are correct that they don't have the right to come on your property in your state and any deed covenant stating otherwise has been judged unenforceable, they can still charge you for all kinds of things and if you refuse to pay they can just foreclose on your house. There is a difference between breaking the law and committing a crime. Their coming on your property to say mow it, may well be breaking the law but it would definitely not be committing a crime and would land you in civil not criminal court. I am not getting where your cop friend is arresting them and I doubt that doing so would be looked on favorably. The one thing that many people forget is that judges are rarely unreasonable, in civil proceedings if your HOA came on your property and mowed your yard because you wouldn't, they may well be breaking the law in your state, but the judge may dismiss the case and yell at you along the way. On the other hand if the HOA was passing rules that are causing your property damage the judge would overrule them and probably yell at them....See MoreContractor is threatening a mechanics lien-- should I be scared?
Comments (15)As I referenced earlier, under California law, as a licensed general contractor, you can only record a mechanic’s lien after all work contracted for is completed, or you no longer have the ability to complete the work (project has shut down, you have been terminated, etc.). If you record a lien before the work is completed, you have created a premature lien, which is not valid and you must remove it. Therefore, it would be your decision to terminate the contract that would expose you to the possibility of a lien. When you terminate a contract you must immediately pay the GC for all the work he has done. If some of the work was unacceptable you must make that clear in writing when you send him what you think you owe him. You should also make it clear why you terminated the contract. A rejection of work by the building inspector will be helpful. Everything should be documented. If the amount in dispute gets down to a few hundred dollars it will probably not be worth it to him to file a lawsuit to enforce the lien which he must do within 90 days of filing the lien....See More
sushipup1
8 years agonosoccermom
8 years agosushipup1
8 years agolast modified: 8 years ago
weedyacres
8 years ago
Linda Doherty
8 years agofraker
8 years agoRon Natalie
8 years ago
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