Contractor was paid, but contractor did not pay laborers

[rakish75]

What is the name of your state?California

We just had our roof redone and paid the contractor in full. we just received a CALIFORNIA TWENTY DAY PRELIMINARY NOTICE. This notice informed us that the contractor did not pay for labor, services, and equipment in the completion of our roofing. It also warned that if the remaining bill is left unpaid, a mechanic's lien may be placed on our home. Can we dispute this on our own? Do we have to hire a lawyer? We tried calling the contractor but the company is not answering the phones. This would be like paying for a job we already paid for.

 

[HomeGuru]

What is the name of your state?California

We just had our roof redone and paid the contractor in full. we just received a CALIFORNIA TWENTY DAY PRELIMINARY NOTICE. This notice informed us that the contractor did not pay for labor, services, and equipment in the completion of our roofing. It also warned that if the remaining bill is left unpaid, a mechanic's lien may be placed on our home. Can we dispute this on our own?

**A: what is there to dispute? It is obvious that the workers did not get paid.
**********
Do we have to hire a lawyer?

**A: no, but it would be wise to do so.
********
We tried calling the contractor but the company is not answering the phones. This would be like paying for a job we already paid for.

**A: yes indeed.

 

[man-o-man]

Contact the Contractors State Licensing Board. Inform them of what has happened and ask how you should proceed from this point forward. There are laws to protect employees, laws to protect contractors, and laws to protect concumers. What you are experiencing is the ramification of laws to protect the employees; yes, I know, you did your part; but now your part becomes waving a "big stick" at the contractor.

They'll probably advise you to send a "certified letter" to the contractor informing him that you've already contacted the CSLB and that he now has three business days till you formally file a complaint with the Contractors State Licensing Board. The only thing that will stop you from taking this step is to pay his employees and stop the lein proceedings by providing proof of payment to you and to the appropriate agency. The CSLB can stop him from doing business (legally) by suspending or revoking his contractors license until he complies with the law (pays his workers).

You have paid once. I would leave it at that and let the lein happen, unless you're planning on selling, once he does pay his employees, make sure it is he that does the leg work to have the lein removed.

Having a lein on your property only means you can't sell the property until the lein is "satisfied". A "clear title" menas there are no leins and the property may be sold without encumberances; but it does not force you to pay the debt that is attached to the property. Once the contractor does pay the debt (to the employees) the lein should be removed from the title of your property.

If you pay the employees you will place your self in the position of the debt "collector" instead of leaving the employees in that position.

Most scrupulous contractors will inform you, at the time you are signing the contract, that a lein may be placed against your property for a variety of reasons by a variety of companies / individuals. The only reason for this is to insure payments due are made in a timely fashion.

Contractors with integrity will also stipulate in their contracts that once they have been "paid-in-full" they will insure that no leins will be placed on your property by providing you with a "release from lein" at the close of the contract. This states you agree that they have done what they agreed to do for you, and that they agree to pay all vendors, employees and suppliers to insure no leins are placed on your property because you have, in fact, paid them "in full."

 

[I AM ALWAYS LIABLE]

You have paid once. I would leave it at that and let the lein happen, unless you're planning on selling, once he does pay his employees, make sure it is he that does the leg work to have the lein removed.

Having a lein on your property only means you can't sell the property until the lein is "satisfied". A "clear title" menas there are no leins and the property may be sold without encumberances; but it does not force you to pay the debt that is attached to the property. Once the contractor does pay the debt (to the employees) the lein should be removed from the title of your property.

My response:

These are stupid, idiotic, comments. You'd "leave it at that"? "Man-o-man" should read this link: http://petit.philou.free.fr/

You talk as if a lien is nothing more than, perhaps, an "inconvenience" or something. That is absolutely wrong, and an irresponsible statement to any homeowner.

What happens when the contractor skips town?

I'll tell you what happens . . . It's called a lawsuit to "Foreclose Lien". The unpaid sub-contractor(s), and/or material suppliers, must bring this lawsuit, AND they file a "Lis Pendens" with the county recorder's office against the property in order to secure the property from sale, and preserve their lien rights. It's the homeowner that's ultimately responsible for payment. If that means "paying twice", then that's what's going to happen. Otherwise, the house gets sold at a foreclosure sale.

Any homeowner that has a contractor with a "crew" of people working on the house and property MUST obtain a lien release from EVERY person and every material supplier in order to safeguard their property. Anything less, under current California lien laws, is foolhardy, and playing Russian Roulette.

There's nothing that ANY State Agency can do in this circumstance. It's up to the homeowner to find, and sue, the general contractor - - otherwise, unless the other sub-contractors and material suppliers are paid, that property is going up for sale in a Lien Foreclosure Auction.

Our writer should read this link for further details:

http://www.cslb.ca.gov/forms/MechanicsLiens.asp

IAAL

 

[man-o-man]

It's easy to argue ......

..... with one statement taken out of context from a post and build a whole case around just that. I'm not going to waste our time with a come-back that will, no doubt, be delt with in the same manner. Nor will I react in the same manner, by picking something out of your post, and "soap box" that item.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

OP~

If you did contact the CSLB as I suggested in the first paragraph, then you'd know that just because a lein is threatened, or even placed, does not mean it's the end of the world, provided steps are being taken to deal with the situation.

The CSLB is a "big stick" and a tool you should use, they are there to provide a service to the community. If they can add to the "pressure" on this guy, then by all means take advantage of that tool. Putting him out of business is a big thing, getting bad public reports on his business practices can drive him out of business even more effectively that just loosing his Contractors License. Reputation is a big thing to Contractors.

Of course, if a lein is placed and not dealt with bad things can happen, but panicing because a procedure has begun is not an appropriate response either.

Just because the contractor is not answering his phone does not mean he's unreachable; he could be "served" with a summons by those who are skilled at tracking and finding those who are "on the lam."

I'm sure you followed the wonderful links IAAL provided and will be sure to get signed "releases" in return for any future payments you make to anyone (if it comes to that). Hopefully that expense can be postponed until you've taken this guy to court and forced him to pay (them or you). Either way ~ get those releases !!!!

So, educate your self, hire a lawyer if need be, but keep a cool head so you can respond without putting your self at more risk, financially or otherwise. It's not something to loose a whole bunch of sleep over, or do something out of anger or desparation that would hurt you more than him. All I meant by "leave it at that" was that it's just part of the dance; don't panic, just deal with it.

Foreclosure is a last resort move, and as long as the subs and suppliers know you are dealing with it, and they're kept abreast of the situation, they'll probably work with you instead of resorting to drastic measures.

But you knew that's what I meant, right OP?

 

[HomeGuru]

You have paid once. I would leave it at that and let the lein happen, unless you're planning on selling, once he does pay his employees, make sure it is he that does the leg work to have the lein removed.

Having a lein on your property only means you can't sell the property until the lein is "satisfied". A "clear title" menas there are no leins and the property may be sold without encumberances; but it does not force you to pay the debt that is attached to the property. Once the contractor does pay the debt (to the employees) the lein should be removed from the title of your property.


**A: what was taken out of context? Your statement to the writer is just plain lame and shows your ignorance. And what is a lein anyway?

 

[man-o-man]

HomeGuru ~ go up two posts (just above your last one.) What is obvious to many will become more apparent to you.

Typo's = ignorance ?

You can stop this now ..... this is the last time I'll suggest this.

Toe-to-toe is done in person, not on the internet. Here it means nothing. I won't waste more than this one short post to remind you of this. You can invest more of your time and energy being this way towards me if you wish, but it won't avail you further replies from me. I don't play that way.

 

[HomeGuru]

HomeGuru ~ go up two posts (just above your last one.) What is obvious to many will become more apparent to you.

Typo's = ignorance ?

You can stop this now ..... this is the last time I'll suggest this.

Toe-to-toe is done in person, not on the internet. Here it means nothing. I won't waste more than this one short post to remind you of this. You can invest more of your time and energy being this way towards me if you wish, but it won't avail you further replies from me. I don't play that way.

**A: ignorance. What is a lein?

 

[SUMMITVIEW]

Your ignorance is your culo....home CULO.....

 

[HomeGuru]

Your ignorance is your culo....home CULO.....

**A: VOMITVIEW's phrase of the week.

 

[Itzshowtyme]

you need to file a COMMERCIAL AFFIDAVIT against this contractor and then file a COMMERCIAL LIEN...that will get his attention...it will freeze his assets and can not be lifted until he satisfies your demands...

 

[HomeGuru]

you need to file a COMMERCIAL AFFIDAVIT against this contractor and then file a COMMERCIAL LIEN...that will get his attention...it will freeze his assets and can not be lifted until he satisfies your demands...

**A: do you really know what you are talking about?

 

[HomeGuru]

Your ignorance is your culo....home CULO.....

**A: referenced post.