by Sean Hess (www.SeanHess.com), Broker and Manager for St. Augustine Team Realty (www.StAugustineTeamRealty.com)
I read an article last week in the St. Augustine Record about several homeowners in Commodores Club getting ripped off by the same contractor.
Basically the guy did the work, but didn’t pay for the supplies. The contractor took payment for the supplies (driveway pavers) as part of the cost of the job, then pocketed the money. So the suppliers ended up putting leins on each of the houses until such a time as the supplies are paid for. The upshot is if the owners ever want to sell the house, the liens have to be cleared before the house can be sold.
The simple way not to let this happen to you is to simply purchase the supplies yourself.
When you’ve decided which contractor to use, the contractor will have to estimate the amount of materials to be used. Have him give you the list of the amounts.
In the case of the driveway pavers you would then go to the building supply company, pick out the style you want, then order the amount that the contractor specified along with any extra materials needed. The building supply company will then deliver it to your house. And since you’re paying the building supply company yourself there’s no issue with a lein. You can do that with roof shingles or anything.
Even if it’s something like a concrete pour or roof trusses on an addition, you can still verify that the supplier has been paid before you let them onto the property. Something like a concrete pour might vary a little anyway, but you can at least contact the company to see what payment terms they have with the contractor.
You cannot take a lein lightly. I once recieved notice of a builders lein for some work that one of my neighbors was doing on his own house. It was a case of mistaken identity but I responded in the strongest possible terms that I would complain to the state agency that held the builder’s license and threatened legal action if it wasn’t removed immediately. Which they did do quickly.
A year or two ago in Jacksonville a city employee was driving around looking for homes with “for sale” signs: she would then file a bogus builder’s lein for a few thousand $$ on the property. Since the sellers had to clear the lein before selling, they usually just paid the bogus lein off instead of delaying the closing with legal action. The lady did end up in jail, but again it shows how seriously and how quickly you need to respond if you ever get one of these.
It’s almost like you have to act as the Supervisor on your own project.
In the old days when work was contracted the building supply company would hustle the supplies out immediately then file the lein (in case of a non-payment the first lein gets paid first). So, if you’ve already paid the contractor for the supplies and the supplies show up, refuse delivery until you can verify the goods have been paid for.
The last thing: if you do order work and you don’t pay for it when it’s finished, then count on a lein from the builder himself.
Tags: contractor rip offs, homes for sale in st. augustine, St. Augustine Real Estate
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