Little Help? Regarding home improvements for landlord, also a car loan (cash) I gave to landlord.

[Justifiably PO’d]

What is the name of your state?Illinois
I rented a house from a “cousin”. I rented it with the oral agreement that I would do construction improvements to the house (90 year old house), I would pay for the materials because he had no money, and we would share the profit from the increased value. He offered to sell me the house for 200 K about 2 or 3 months into the situation. Now that I am just about done, he says the house is worth 350k.
I had a 2nd heart attack just about a year ago (open heart, quad bypass). He came to the hospital to get my keys, as soon as I came out from the surgery. After I recovered, I had noticed he had been stealing some things so I put security cameras in the house (wifi), and the very next day i was getting alarms. I called him while he was in the house (i did not know what my rights were as a tenant), and said “WTF?”….so that started the war we are currently in.
I have app. 12K of my money invested in materials including the 1800.00 car loan.
I have invested a lot of labor in the house.
I paid the rent on time every month.
He has stolen well over 1000.00 worth of tools and material from me.
He gave me a 30 day notice to vacate at the end of this month. I have no problem with that.
There are a lot of other details, like the camera’s caught him going through my mail, including looking through my trash, but i want to be brief.
Of course I don’t have anything in writing, we were “cousins”! LOL (on me).

Questions: Can I file a lien on the house and/or car? Are there any other options for me?

I sincerely appreciate any advice.

 

[LdiJ]

What is the name of your state?Illinois
I rented a house from a “cousin”. I rented it with the oral agreement that I would do construction improvements to the house (90 year old house), I would pay for the materials because he had no money, and we would share the profit from the increased value. He offered to sell me the house for 200 K about 2 or 3 months into the situation. Now that I am just about done, he says the house is worth 350k.
I had a 2nd heart attack just about a year ago (open heart, quad bypass). He came to the hospital to get my keys, as soon as I came out from the surgery. After I recovered, I had noticed he had been stealing some things so I put security cameras in the house (wifi), and the very next day i was getting alarms. I called him while he was in the house (i did not know what my rights were as a tenant), and said “WTF?”….so that started the war we are currently in.
I have app. 12K of my money invested in materials including the 1800.00 car loan.
I have invested a lot of labor in the house.
I paid the rent on time every month.
He has stolen well over 1000.00 worth of tools and material from me.
He gave me a 30 day notice to vacate at the end of this month. I have no problem with that.
There are a lot of other details, like the camera’s caught him going through my mail, including looking through my trash, but i want to be brief.
Of course I don’t have anything in writing, we were “cousins”! LOL (on me).

Questions: Can I file a lien on the house and/or car? Are there any other options for me?

I sincerely appreciate any advice.

If I were in your shoes I would probably sue him for the materials and labor, the tools and things that he took, and anything else he owes you. If you win the suit and get a judgment, then for sure you can put a lien on the home. You are probably going to need an attorney for that as it appears to be over any small claims court limits.

Otherwise, you would have to see if you qualify for a mechanic's lien. However, that would not include your tools and things that he stole.

 

[zddoodah]

I rented a house from a “cousin”.

I doubt it matters, but why is the word "cousin" in quotation marks?

we would share the profit from the increased value.

Share...50/50? Something else? How is "increased profit" determined under your agreement? Did you have the house appraised prior to beginning the improvements?

He offered to sell me the house for 200 K about 2 or 3 months into the situation.

How long ago was this? Was the offer made in writing? Did the offer have an expiration date?

he says the house is worth 350k.

Based on what?

including the 1800.00 car loan.

This is the first reference in your post to a car loan. What does this mean?

Questions: Can I file a lien on the house

You can, but I doubt it would be valid.

and/or car?

Again, unlikely. However, since you provided no relevant facts about this car/loan, it's impossible to know for sure.

Are there any other options for me?

If you answer the questions I asked, I may be able to address this.

 

[not2cleverRed]

I have app. 12K of my money invested in materials including the 1800.00 car loan.

What does the $1800 car loan have to do with materials? The car is not structurally part of the house, is it?!

Did you have a written lease at least?

 

[adjusterjack]

I doubt it matters, but why is the word "cousin" in quotation marks?

Should be obvious that he is emphasizing "cousin" to indicate that he was a damned fool to get into this deal with a relative in the first place. Z - you really need to learn how to read between the lines. LOL.

 

[Zigner]

Should be obvious that he is emphasizing "cousin" to indicate that he was a damned fool to get into this deal with a relative in the first place. Z - you really need to learn how to read between the lines. LOL.

That could be one interpretation, but I'm with Z (the other Z) on this one. I pictured this more as the OP dealing with the child of a person who he called his aunt (or uncle) his entire life, but was never actually related to. I think we all (or at least a good number of us) have people like that. Heck, I'm "uncle" to several young-uns that are of no relation to me.

 

[LdiJ]

That could be one interpretation, but I'm with Z (the other Z) on this one. I pictured this more as the OP dealing with the child of a person who he called his aunt (or uncle) his entire life, but was never actually related to. I think we all (or at least a good number of us) have people like that. Heck, I'm "uncle" to several young-uns that are of no relation to me.

Heck I am grandma to at least a half dozen children to whom I am not related, even by marriage.

 

[Litigator22]

If I were in your shoes I would probably sue him for the materials and labor, the tools and things that he took, and anything else he owes you. If you win the suit and get a judgment, then for sure you can put a lien on the home. You are probably going to need an attorney for that as it appears to be over any small claims court limits.

Otherwise, you would have to see if you qualify for a mechanic's lien. However, that would not include your tools and things that he stole.

Obtain a money judgment against the property owner and THEN see if the OP qualifies for a mechanic's lien?

That advice is as equally flawed as suggesting that a mortgage lender first take a money judgement against the defaulting mortgagor/borrower and then attempt to foreclose the mortgage. Or, in the instance of an auto loan have the lender sue the borrower on the past due promissory note and forsake repossessing the vehicle pledged to secure the loan.

Metaphorically speaking might it occur to you that putting the cart in front of the donkey in such a way defeats the very purpose of having a cart?

Also, if you have the urge to offer uneducated opinions on mechanics lien laws in the OP' state of Illinois I suggest that you first study the state's Mechanic's Lien Act. https://law.justia.com/codes/illinois/2010/chapter770/2254.html

 

[Taxing Matters]

Questions: Can I file a lien on the house and/or car? Are there any other options for me?

There are two basic ways to get a lien on property. The first is to get a voluntary lien on the property at the time you make the deal. That means getting him to execute a mortgage on the property or lien on the car title and get them recorded with the proper recording offices. Then if the person defaults on the contract, you have the remedy of foreclosing the mortgage or taking possession of the car, sell the assets, and get your money.

You didn't do that, which leaves the other way to get a lien: you sue him for what you believe he owes you and if the court agrees he owes you something, the court will give you a judgment for the amount the court determined you are owed. You'd then record the judgment as provided in the laws of your state and then set out to attach non exempt property that he has.

You then need to work out if there is any value in the assets that you can get by executing on the judgment lien. For the real estate, your lien will be behind any real estate taxes owed, any mortgages on the property recorded before your lien was recorded, and any other liens attaching the property before your lien was recorded. You also need to work out what the house might realistically fetch at a forced sale. Bids at a forced sale are typically significantly below fair market value (FMV) and what the costs will be for pursuing the foreclosure of the judgment lien. Doing all that will tell you if it's worthwhile to make that effort. Similarly, for his car, there may be a lien on the title for an auto loan he's paying off. If so, there is a good chance that he may owe more than the vehicle is actually work. You also need to account for any exemption that state law may give that protects a certain amount of the value of one vehicle from being taken by creditors.

There is one other possibility here, you might be able to get a mechanics lien on the home for at least the value of the materials you put into the place. I don't know your state's law on that, and there are typically very specific steps required to perfect that kind of lien. If you get any part wrong, you may fail to get the lien. Time is usually not your friend when it comes to mechanics liens, so the sooner you look into that, the better shot you'd have.

I suggest you see a civil litigation attorney to sort out what real chance you have to win if you sue and how much you realistically might recover. The fact that the agreement is not in writing will be a significant problem, particularly with respect to claiming an interest in the real estate. That's something you'd need to discuss with the lawyer as well. A lot civil litigation attorneys give free or low cost initial consultations, so it shouldn't cost you all that much to find out if there's any recourse here for you.

In the future, get every agreement that involves a significant commitment from you, whether in money, time, materials, or whatever in writing at the outset. That makes enforcing the agreement later much easier since it cuts out most disputes as to what the agreement was, if the agreement is well written.

 

[LdiJ]

Obtain a money judgment against the property owner and THEN see if the OP qualifies for a mechanic's lien?

That advice is as equally flawed as suggesting that a mortgage lender first take a money judgement against the defaulting mortgagor/borrower and then attempt to foreclose the mortgage. Or, in the instance of an auto loan have the lender sue the borrower on the past due promissory note and forsake repossessing the vehicle pledged to secure the loan.

Metaphorically speaking might it occur to you that putting the cart in front of the donkey in such a way defeats the very purpose of having a cart?

Also, if you have the urge to offer uneducated opinions on mechanics lien laws in the OP' state of Illinois I suggest that you first study the state's Mechanic's Lien Act. https://law.justia.com/codes/illinois/2010/chapter770/2254.html

Pound sand Litigator. What he is owed is more than what would be covered by a mechanic's lien therefore it is NOT his best solution, IF he even qualifies. I clearly did not express an opinion as to whether or not he qualifies. Or did you just neglect to actually read what both he and I wrote?

 

[zddoodah]

If I were in your shoes I would probably sue him for the materials and labor, the tools and things that he took, and anything else he owes you. If you win the suit and get a judgment, then for sure you can put a lien on the home.

Obtain a money judgment against the property owner and THEN see if the OP qualifies for a mechanic's lien?

I don't see anything in LdiJ's post referring to a mechanic's lien. What LdiJ wroe was that, if the OP gets a judgment, "then for sure [the OP] can put a lien on the home." Again, the word "mechanic's" didn't appear at all. Obtaining a judgment allows the judgment creditor to create a judgment lien that attaches to all real property owned by the judgment debtor. While it wouldn't specifically be against any particular property, it has the same effect.

Also, if you have the urge to offer uneducated opinions on mechanics lien laws in the OP' state of Illinois I suggest that you first study the state's Mechanic's Lien Act.

And if you have the urge to speak ignorantly about different types of liens, perhaps you ought to educate yourself. Wow....

 

[LdiJ]

I don't see anything in LdiJ's post referring to a mechanic's lien. What LdiJ wroe was that, if the OP gets a judgment, "then for sure [the OP] can put a lien on the home." Again, the word "mechanic's" didn't appear at all. Obtaining a judgment allows the judgment creditor to create a judgment lien that attaches to all real property owned by the judgment debtor. While it wouldn't specifically be against any particular property, it has the same effect.




And if you have the urge to speak ignorantly about different types of liens, perhaps you ought to educate yourself. Wow....

I am quoting myself below

If I were in your shoes I would probably sue him for the materials and labor, the tools and things that he took, and anything else he owes you. If you win the suit and get a judgment, then for sure you can put a lien on the home. You are probably going to need an attorney for that as it appears to be over any small claims court limits.

Otherwise, you would have to see if you qualify for a mechanic's lien. However, that would not include your tools and things that he stole.

I assume that you are not denying that he can put a lien against someone's assets if he wins a judgment? I assume you are not saying that he cannot see if he qualifies for a mechanic's lien? I assume that you realize that a mechanic's lien cannot include items not related to a specific job?

 

[Litigator22]

Pound sand Litigator. What he is owed is more than what would be covered by a mechanic's lien therefore it is NOT his best solution, IF he even qualifies. I clearly did not express an opinion as to whether or not he qualifies. Or did you just neglect to actually read what both he and I wrote?

With all due respect, there are cogent and compelling reasons why the OP should NOT do as you would do if wearing his shoes.

Meaning that if in his shoes you would ignore/reserve rights afforded by Illinois' Mechanic's Lien Act - on the mistaken belief that "he is owed more than would be covered by a mechanic's lien" * and sue the property owner for breach of contract.

First is the relation-back-doctrine, which is a principal that affects the priority of a mechanic's lien.

"According to this doctrine the effective date of the mechanic's lien for determining priority is the date of the contract by which the improvements were made. Meaning that the mechanic's lien will take precedence over encumbrances to the property that are recorded in between the date of the contract and the date that the mechanic's lien is recorded and or proceedings brought to enforce the lien." See: Chapter 770 ILCS Section 7

In contrast a bare money judgment in favor of the OP and against the owner of the property (based upon breach of contract) would not serve as a lien against the judgment debtor's real property (and would enjoy no relation-back-priority over intervening recorded encumbrances) "until such time that a certified copy of the judgment or memorandum thereof is filed in the office of the recorder in which county the property is located." See: Chapter 735 ILCS 5/Art XII Section 12-101 Lien of Judgment)

Secondly there is the matter of economics. If the OP were to do as you suggest and rely for remuneration solely on the lien created by means of a money judgment lodged against the property owner, he would be compelled to commence a separate lawsuit directed at foreclosing the established judgment lien in the same manner as when applying for a judicial sale foreclosing a mortgage of real property!!! See: 735 ILCs 5/12-101.

Whereas all of that complicated and expensive process when seeking to create and enforce a mechanic's lien is provided in one single court filing. See: Applicable provisions of 770 ILCs beginning at Section 7.
___________________________

[*] Given the numbers supplied by the OP - give or take $12K invested in materials, plus substantial labor and services - I fail to see how you can conclude "that he is owed more than would be covered by a mechanic's lien". (Noting that any additional, uncovered loss could be included in a separate count, if he files pursuant to 770 ILCS 60/7.)

Nor do I understand how you justify being so dismissive of any suggestion that you counseled the OP regarding the subject of a mechanic's lien where you directly steered him from it. And now quantify his entitlement as lacking qualification.