breach of contract

[streep]

What is the name of your state? NC
I signed a contract with a licensed contractor for a given amount to build my home. He stated in the contract that he would complete it in approximately six months. It has now been a little over a year. He works very infrequently. The contract provides for draws at certain stages in the building of the house. I have been paying him at each draw. I recently discovered that he has not been paying his subcontractors and vendors completely. He has asked for advance payments four times and I have given them to him three times. The fourth time he asked for an advance, I refused and told him if it would speed the contract, I would pay subcontractors and vendors directly at my discretion. One of the subcontractors tells me he's going to place a lien on my house today. He says I can pay him directly without the contractor's signing off on him. In light of all the above, what are my options with this contractor and with this subcontractor.

Thank you.

 

[HomeGuru]

What is the name of your state? NC
I signed a contract with a licensed contractor for a given amount to build my home. He stated in the contract that he would complete it in approximately six months. It has now been a little over a year. He works very infrequently. The contract provides for draws at certain stages in the building of the house. I have been paying him at each draw. I recently discovered that he has not been paying his subcontractors and vendors completely. He has asked for advance payments four times and I have given them to him three times. The fourth time he asked for an advance, I refused and told him if it would speed the contract, I would pay subcontractors and vendors directly at my discretion. One of the subcontractors tells me he's going to place a lien on my house today. He says I can pay him directly without the contractor's signing off on him. In light of all the above, what are my options with this contractor and with this subcontractor.

Thank you.

**A: hire a real estate or construction attorney immediately.

 

[streep]

Could you elaborate? Why do you say hire an attorney immediately?

 

[HomeGuru]

Could you elaborate? Why do you say hire an attorney immediately?

**A: because there is an urgency to this matter. You have overpayed the contractor but more importantly one of the subs is going to file a lien against your home. Once a lien is filed, the mortgage lender is not going to be a happy camper and will stop funding.

 

[streep]

This is not a construction loan but the loan was obtained based on the value of the house before construction started.

 

[HomeGuru]

This is not a construction loan but the loan was obtained based on the value of the house before construction started.

**A: it makes no difference as the default provsions in your mortgage would be the same.