What is the name of your state? Iowa
Last October (2005) I closed on a house built with a General Contractor. 9 months later, I received a bill for $2800 with regards to fill dirt that was brought in during construction. The original contract states that I will pay for all fill dirt hauled in, and the general contractor will have all bills known to me prior to closing (unless noted in writing). The contractor knew about this bill prior to closing, but waited 9 months before billing me. I still agreed to pay it, but on a $100/month payment plan. The contractor agreed (verbally).
The first month we had a misunderstanding on whether or not he was to invoice me monthly, but we cleared that up.
The second month he wanted it known that missed payment would result in payment in full being required, and that 8% interest would begin if I missed a payment. Neither of these items were discussed at the time we verbally agreed to the payment plan.
Now, just prior to the 3rd months payment, the contractor sent me a letter stating he wants payment in full, or he will take out a mechanic's lien againt me. Over the past 2+ months, the contractor and I have corresponded enough that the terms of our verbal agreement are clearly spelled out in letters from the contractor.
I have several questions...
1) Since the initial agreement was verbal, can the contractor be held to the contract terms, since they are now in writting by his own hand?
2) Since the contractor has already accepted 2 months payment, is the contract binding?
3) Can he still put a lien on my house?
4) How can I stop him from putting a lien on my house?
Last October (2005) I closed on a house built with a General Contractor. 9 months later, I received a bill for $2800 with regards to fill dirt that was brought in during construction. The original contract states that I will pay for all fill dirt hauled in, and the general contractor will have all bills known to me prior to closing (unless noted in writing). The contractor knew about this bill prior to closing, but waited 9 months before billing me. I still agreed to pay it, but on a $100/month payment plan. The contractor agreed (verbally).
The first month we had a misunderstanding on whether or not he was to invoice me monthly, but we cleared that up.
The second month he wanted it known that missed payment would result in payment in full being required, and that 8% interest would begin if I missed a payment. Neither of these items were discussed at the time we verbally agreed to the payment plan.
Now, just prior to the 3rd months payment, the contractor sent me a letter stating he wants payment in full, or he will take out a mechanic's lien againt me. Over the past 2+ months, the contractor and I have corresponded enough that the terms of our verbal agreement are clearly spelled out in letters from the contractor.
I have several questions...
1) Since the initial agreement was verbal, can the contractor be held to the contract terms, since they are now in writting by his own hand?
2) Since the contractor has already accepted 2 months payment, is the contract binding?
3) Can he still put a lien on my house?
4) How can I stop him from putting a lien on my house?
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