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Attorney 1
Attorney 1, Attorney
Category: Real Estate Law
Satisfied Customers: 2446
Experience:  Knowledgable and Experienced Attorney
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I hired a contractor to do a major remodel on a home gifted

Customer Question

I hired a contractor to do a major remodel on a home gifted to me by my parents. I took out a construction loan. The work is not compliant with the blueprints and I had a home inspector look at what had been done already. There are many issues, lousy work, codes not met and money has been released to him by the title company. I am receiving e-mails that subcontractors have not been paid even though he has received the money. My contract states I can legally stop him from continuing which I have done but how do I go about getting money he received for unfinished work
JA: Real Estate issues can be tricky and expensive. The Real Estate Lawyer will need to help you with this. Have you consulted a lawyer yet?
Customer: Yes and one said they could not represent me since it would be conflict of interest since they do business with the bank I received loan and also title company.
JA: What advice did they give you?
Customer: Out of luck..my concern is how do I avoid subcontractors putting lien on my property since I didn't personally hire them and how do I recoup the thousands of dollars he received. I was advised I would need to sue all three of them..I'll go broke and then he probably doesn't have any assets for me to be repaid
JA: Is there anything else the Real Estate Lawyer should be aware of?
Customer: They have contracts, I am waiting for my architect to document everything that is wrong and it is taking a very long time..I have been out of my residence since Oct. and the interest on my loan is very expensive at this point
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Real Estate Lawyer about your situation and then connect you two.
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  Attorney 1 replied 6 months ago.
Hello, and welcome. I am a licensed attorney and happy to assist. I'm sorry to hear you're having such trouble with this contractor. Unfortunately, this kind of thing happens quite a bit and the unpaid subcontractors have a right to place a lien on the property as much as the primary contractor would if he was still owed money. That said, you have options that won't break the bank, and I expect this will resolve in your favor. The first thing you can do is make a complaint to the Contractors Board. The purpose of the Board is to regulate the industry and make sure that homeowners are not taken advantage of by disreputable contractors, so every complaint is taken seriously. Most states allow complaint to be filed online, which makes the process quick and easy. The Contractors Board can investigate and/or arbitrate the matter, and even recover money awarded in the arbitration (the process is at little or no cost to the homeowner). If the contractor fails to pay the award amount in a timely manner, the license is suspended until the amount is paid and the contractor goes through a reinstatement process. In serious cased, the contractor's license can be revoked. Any disciplinary action is a matter of public record and blemishes the contractor's license for years (usually 7). If you have the contact information for the subcontractors who have not been paid, you can likely prevent liens from being filed. Good communication here is the key. If you let them know that you made a complaint with the Board, they may hold off on putting a lien on your house, knowing there is likely payment coming down the pike. In the event a subcontractor does put a lien on the house, he only has a short period of time in which to enforce the lien (usually three months) before becomes invalid. The lien would usually need to be enforced by bringing a state court action against you, which is unlikely to be done by subcontractor. In any event, if you show you paid the contractor, the court would likely rule in your favor and the subcontractors recoursewould be against the contractor, directly. Just letting the subs know of your payment to the contractor should direct their actions against him and away from you. I hope this helps. If you need additional information or clarification, just let me know and I'll be happy to continue assisting you. If I have addressed your issue and/or pointed in a positive direction, please let me know that, as well. Also, please remember to leave a positive rating when prompted, as that is the only way attorneys on this site are credited for the help we provide. Good luck! Best,Attorney 1 I hope this helps. If you need additional information or clarification, just let me know and I'll be happy to continue assisting you. If I have addressed your issue and/or pointed in a positive direction, please let me know that, as well. Also, please remember to leave a positive rating when prompted, as that is the only way attorneys on this site are credited for the help we provide. Good luck! Best,Attorney 1

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