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CONSTRUCTION REMEDIES

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LDAVIES

Guest
What are the best remedies for a liecnsed contractor who improves a property that is being sold, the buyer and seller dispute who is going to pay the bill - the work was done while the seller owned the property but the buyer requested upgrades and signed the invoice? The escrow has closed and 90 days have past so I believe a mechanic's lien is out. The escrow company is still holding the funds.
 


HomeGuru

Senior Member
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by LDAVIES:
What are the best remedies for a liecnsed contractor who improves a property that is being sold, the buyer and seller dispute who is going to pay the bill - the work was done while the seller owned the property but the buyer requested upgrades and signed the invoice? The escrow has closed and 90 days have past so I believe a mechanic's lien is out. The escrow company is still holding the funds. <HR></BLOCKQUOTE>

You may still have mechanic lien rights so check your State laws. Some states have the time period to file a mechanics lien triggered by a legal public publication notice sometimes called a Notice of Substantial Completion.
If you are indeed barred from filing a mechanics lien, you could just sue to collect. Send escrow a certified letter to release the funds to you to prepare for legal action.

In the future have a contract signed by both the Seller and Buyer with preapproved escrow instructions. The party that is responsible to PAY for the work must sign the contract. So even if the Buyer will benefit, but the Seller pays, Seller must sign the contract. If Buyer asks for upgrades and additional work over and above the original contract, have the Buyer sign a separate contract.
 

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