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Old 06-20-2018, 08:11 AM
 
Location: Towson, MD
187 posts, read 92,087 times
Reputation: 810

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Also keep in mind that once the contractor is aware there is a sale of the property pending (as someone will contact him about the lien, title company or attorney), the contractor has zero incentive to settle as he will HAVE to be paid before the sale can go through.

My company occasionally places liens on real property. They simple sit there until the customer sells the house, unless satisfied earlier. We've had a couple customer really get angry at this, but once the lien is accepted by the state, it's a legal claim. Customers have had to pay us off, like it or not.
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Old 06-20-2018, 08:54 AM
 
1,807 posts, read 2,327,708 times
Reputation: 4107
Quote:
Originally Posted by rjf1958 View Post
Also keep in mind that once the contractor is aware there is a sale of the property pending (as someone will contact him about the lien, title company or attorney), the contractor has zero incentive to settle as he will HAVE to be paid before the sale can go through.

My company occasionally places liens on real property. They simple sit there until the customer sells the house, unless satisfied earlier. We've had a couple customer really get angry at this, but once the lien is accepted by the state, it's a legal claim. Customers have had to pay us off, like it or not.
You’re talking like you hit the jackpot. Aren’t these legitimate claims? I’d think you’d be pissed that you had to wait so long to get paid.
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Old 06-20-2018, 08:58 AM
 
Location: Cary, NC
31,595 posts, read 55,307,520 times
Reputation: 30150
Quote:
Originally Posted by dmills View Post
You’re talking like you hit the jackpot. Aren’t these legitimate claims? I’d think you’d be pissed that you had to wait so long to get paid.
6% interest on a judgement may well be the jackpot in today's interest environment.



https://law.justia.com/codes/virgini....1-330.54.html
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Old 06-20-2018, 09:06 AM
 
Location: Raleigh NC
7,758 posts, read 6,114,541 times
Reputation: 6882
Quote:
Originally Posted by dmills View Post
That’s the point. We offered just THAT. We offered to do ALL the repairs, and let him walk - for a small fee (price concession). He walks away, and the lien is resolved. It does t get any easier than that. He essentially “agreed” to that, then started this crazy stuff about not wanting to pay the contractor the money he owes.

If that was the way he felt, he had no business listing the property until he resolved the issue. He sounds like he is a cheap, greedy bas***d, with poor business ethics.
I think I would have wanted to know more about the why's of lien before I wrote an offer. You said you knew it existed. Did you know the $ amount?
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Old 06-20-2018, 09:33 AM
 
Location: Towson, MD
187 posts, read 92,087 times
Reputation: 810
Quote:
Originally Posted by dmills View Post
You’re talking like you hit the jackpot. Aren’t these legitimate claims? I’d think you’d be pissed that you had to wait so long to get paid.
It's a fail-safe. We only file when the customer refuses to pay and we've exhausted all other options except an actual suit. Our liens are generally from $1k - $4k. We'd prefer to get paid but this is an option. Of the liens we have filed, I think we've gotten paid on sale of house in two of them, but there are others out there.
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Old 06-20-2018, 09:34 AM
 
1,255 posts, read 808,888 times
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Quote:
Originally Posted by WoodburyWoody View Post
That was generous of you to refund their inspection costs.

Back to OP, $15 worth of repair work should be disclosed to buyers. From what you write, it sounds like only the lien but not the actual nature of the repair was disclosed.

That - and how it appears the seller is dealing with the contractor and stalling on the close - indicates it might be best to walk away. This may be only the beginning.

Or wait and see, understanding that you are at the seller's whims on this.

Good luck.
$15K worth ... ack, my mistake.
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Old 06-20-2018, 10:12 AM
 
Location: Raleigh
6,965 posts, read 5,187,171 times
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It's a possibility that the seller is so furious or indignant about being expected to pay the contractor that performed the work, that he'll slice his nose right off his face to spite him.

Some people will fight these things to the bitterest of ends.

A family member wanted a cabin getaway. One specific stretch of about 14-20 houses. He went so far as to write letters to most of the owners, excluding obviously his family members who already had bought there and old family friends that owned there that he knew weren't selling. He did get some interest that way, including the owner of the house he ultimately bought. Unfortunately, they were too far apart over what the potential seller wanted (needed) and what the buyer felt the market value was. A year or two later, he ended up losing it to foreclosure. He literally fought the foreclosure on every front you could imagine, including filing lawsuits claiming that the judge held a conflict of interest since his retirement fund/IRA/whatever was invested in mutual funds that included Bank of America stock, and it was B of A that was foreclosing on him. The foreclosure goes through, bank sells it...and original owner files a lien on it for the new outbuilding he'd put up. Eventually it settled in a quiet title action, but the date between closing and the offer acceptance was over a year, and another year waiting for it to hit the market after the foreclosure went through. It was no keys for cash deal either, he took it to the point that the sherriff had to evict him.

The thing about standing on a principle, whether that principle is exceedingly ridiculous and goofy, is that you have to take it beyond the most expedient, or financially prudent path.

Some cultures, including cultures that contributed mightily to this country, place an exceedingly high regard in Personal Pride, in not standing for an insult, etc...

Settling the lien would mean the contractor gets paid. That might an absolute no-no in his mind at any cost.
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Old 06-20-2018, 10:12 AM
 
1,807 posts, read 2,327,708 times
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Quote:
Originally Posted by Avalon08 View Post
Geezus, $15K??? I would certainly want to know what the repair was!!! And if it wasn't done properly, you are now stuck with it? Didn't this come up during the home inspection? I don't think you're doing your due diligence here.

So you think it's just that the seller didn't realize he's got to cough up $15K out of his profit/funds to pay off the lien before it closes? He sounds dumb if he didn't know that going in.

However, given the high price of whatever work was done, it sounds like it was something important. I would not go forward without knowing what it was all about....and probably, I wouldn't want to get involved.
Excellent point. That’s been a nagging thought (the significance of the $15k) rolling around in the back of my mind. Sometimes you have to trust your instinct. ��

Last edited by dmills; 06-20-2018 at 10:20 AM..
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Old 06-20-2018, 10:30 AM
 
Location: Raleigh
6,965 posts, read 5,187,171 times
Reputation: 9400
Quote:
Originally Posted by WoodburyWoody View Post
$15K worth ... ack, my mistake.
Who says they weren't disclosed? And what's to say it's a true "repair" as opposed to some sort of long term wear item (new roof, driveway, floors...) and the dispute lies in the color of the shingles or fit and finish of the tile work.
Quote:
Originally Posted by dmills View Post
You’re talking like you hit the jackpot. Aren’t these legitimate claims? I’d think you’d be pissed that you had to wait so long to get paid.
I think his point is that its functionally the nuclear option, the point where there is no settlement, arbitration, meeting of minds...sometimes it means that the contractor has won a judgement so a court has decided on the matter.
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Old 06-20-2018, 01:16 PM
 
1,255 posts, read 808,888 times
Reputation: 2247
Quote:
Originally Posted by JONOV View Post
Who says they weren't disclosed?
OP has stated not knowing what the $15k in repairs were along the way in this thread.

Unless you are saying it is all in the documents (disclosed) and OP missed that.
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