What is the name of your state? IL
Greetings:
I built a new house in Lake County, IL. The entire house was built at a factory. The panels were then brought to the site and assembled. The framing contract was for $83,000. I had visited the factory before signing the contract and they have shown me another house being built. They have also shown me a huge pile of their stock lumber. I had paid them $40,000 and the factory had given me lien waivers which I submitted to the title company and they reimbursed me. The job was 85% complete and I requested the title company rep to review and collect all lien waivers before making the next payment of $36,000. The title company collected a lien waiver from the factory which showed ALL MATERIALS FROM FULLY PAID STOCK. This was first week of March 2004.
In May 2004, I received a Mechanic's lien notice from the lumber supplier to the factory. The amount of lien was $54,000.
I contacted my real estate lawyer and he spoke to the lumber supplier's lawyer and explained that no lumber were delivered to the yard. The lumber supplier claim that some of the lumber were delivered to the worksite. I have a video showing the panels being picked up from the truck using a crane and being installed. My lawyer told me that going to court to remove the lien will cost us more money, so we wait and see the results of the lumber company's (who have personal guarantees from the two owners of the factory) effort to collect the money from the factory owners.
On Oct 29, 2004, the factory (which was a limited liability company) filed for bankruptcy.
When the Mechanic's lien came in May '04, the title company refused to disburse anymore money from the construction loan. I have managed, through family's help to finish the construction, get occupancy and is living in that house now.
My position is
(a) The house is built at the factory from in-stock lumber
(b) I don't have any knowledge of the arrangements between the lumber compnay and the factory
(c) I haven't seen any trucks delivering lumber to the house
(d) I haven't seen any raw lumber laying around the house
(e) I have seen the finished wall and floor panels coming in truck and being assembled.
My question is: Is waiting makes sense any more ? Should I sent notice demanding to withdraw the lien ?
Doesn't the title company have some responsibility ? They claim since we don't have lumber company listed as a sub-contractor to the factory, they are not obliged to collect lien waiver from the lumber company.
The title company was handling my file through an agent title company. When the lien issue came up, they fired that agent and then pulled the file to their corporate office and then reassigned to another agent title company. I have requested and obtained a full set of my file with the title company. It is missing some of the fax communication that I had with them.
When I asked for disbursement, the second title company agent, said that I have to sign an indemnity form absolving the title company (principal) of any responsibility. I refused.
I have told them that if a Judge or Jury finds that even though the house is built at a factory and no lumber delivered to the site, the title company is still responsible for getting a lien waiver from the lumber company, then I will hold the title company responsible not just for the lien amount, but also for the additional expenses, that I incurred, due to their refusal to disburse. These expenses include high interest credit card loans, extra cost on delayed construction etc.
Any comments or suggestions greatly appreciated
Thanks
Rk1990
Greetings:
I built a new house in Lake County, IL. The entire house was built at a factory. The panels were then brought to the site and assembled. The framing contract was for $83,000. I had visited the factory before signing the contract and they have shown me another house being built. They have also shown me a huge pile of their stock lumber. I had paid them $40,000 and the factory had given me lien waivers which I submitted to the title company and they reimbursed me. The job was 85% complete and I requested the title company rep to review and collect all lien waivers before making the next payment of $36,000. The title company collected a lien waiver from the factory which showed ALL MATERIALS FROM FULLY PAID STOCK. This was first week of March 2004.
In May 2004, I received a Mechanic's lien notice from the lumber supplier to the factory. The amount of lien was $54,000.
I contacted my real estate lawyer and he spoke to the lumber supplier's lawyer and explained that no lumber were delivered to the yard. The lumber supplier claim that some of the lumber were delivered to the worksite. I have a video showing the panels being picked up from the truck using a crane and being installed. My lawyer told me that going to court to remove the lien will cost us more money, so we wait and see the results of the lumber company's (who have personal guarantees from the two owners of the factory) effort to collect the money from the factory owners.
On Oct 29, 2004, the factory (which was a limited liability company) filed for bankruptcy.
When the Mechanic's lien came in May '04, the title company refused to disburse anymore money from the construction loan. I have managed, through family's help to finish the construction, get occupancy and is living in that house now.
My position is
(a) The house is built at the factory from in-stock lumber
(b) I don't have any knowledge of the arrangements between the lumber compnay and the factory
(c) I haven't seen any trucks delivering lumber to the house
(d) I haven't seen any raw lumber laying around the house
(e) I have seen the finished wall and floor panels coming in truck and being assembled.
My question is: Is waiting makes sense any more ? Should I sent notice demanding to withdraw the lien ?
Doesn't the title company have some responsibility ? They claim since we don't have lumber company listed as a sub-contractor to the factory, they are not obliged to collect lien waiver from the lumber company.
The title company was handling my file through an agent title company. When the lien issue came up, they fired that agent and then pulled the file to their corporate office and then reassigned to another agent title company. I have requested and obtained a full set of my file with the title company. It is missing some of the fax communication that I had with them.
When I asked for disbursement, the second title company agent, said that I have to sign an indemnity form absolving the title company (principal) of any responsibility. I refused.
I have told them that if a Judge or Jury finds that even though the house is built at a factory and no lumber delivered to the site, the title company is still responsible for getting a lien waiver from the lumber company, then I will hold the title company responsible not just for the lien amount, but also for the additional expenses, that I incurred, due to their refusal to disburse. These expenses include high interest credit card loans, extra cost on delayed construction etc.
Any comments or suggestions greatly appreciated
Thanks
Rk1990