Dead beat clients

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Dead beat clients

AuthorMessage
Vern Mitchinson

Home Choice Inspections Ltd.
NACHI Member: Yes
(as of 3/25/07)
NACHI Member
Posts: 48
User: vmitchinson
Posted: Nov 25, 2005 3:47 PM       Post Subject:
I know collect the money first aiwebs_009.gif
Welll I booked the inspection and the client wanted it the next day but was working so could not attend. Did the inspection printed the report and met the client the next day presented the report Asked for payment but would not pay unless I agreed to return and check that the defects were repaired. Tried to explain that I had compledted my work and that returning was extra. Left site with report. Call from buyer next day begging me to give them the report. Gave in and let them have report on the promise that they wold pay me after I had inspected the defect repairs. icon_redface.gif
Yea I know Should not have gave up report. icon_redface.gif Anyway The possession date passed and no call to inspect repairs. I then filed a bulders lien on the property as client bought the property. Land titles is 2 weeks behind so on the 15th day after filing the lien, client's lawyer phoned, spit and sputtered that it was illagle to file a lien for an inspection and he could take me to court to have it removed. He them said that he would pay the fee to save time. I picked up a cheque issued by the lawyer an hour later. eusa_dance.gif

Now the questions.

Has anyone ever filed a bilders lien when a buyer did not pay?

What happened? Did you get paid?

What other reactions were there?

Is it legal to file a builders lien for payment for an inspection? eusa_doh.gif

Land titles says it is and filed the lien for me but the lawyer says it's not.
I tend to believe the land title's chap and believe it's just sour grapes on the part of the lawyer. icon_redface.gif

Legal or not I got my money.

The lesson here is I will not ever do another inspection unless the client signs the contract before I enter the property. icon_eek.gif
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Raymond Wand

Raymond Wand Home Inspection Service
NACHI Member: Yes
(as of 3/25/07)
NACHI Member
Posts: 447
User: rwand1
Posted: Nov 25, 2005 4:16 PM       Post Subject:
Vern

It is not illegal to file a lien, however I think the clerk is wrong and the lawyer is right.

http://www3.gov.ab.ca/gs/pdf/ltmanual/BUL-1.pdf

In order to file a lein you have to file it against the vendor and have/or supplied materials to the vendor.

Anyway somewhat irrelevent now that you got your money. The puchasers should have alerted you up front about the request to return to inspect. Regardless I do not return to inspect repairs only because I do not have the luxury of seeing the work from start to finnish.

I have used similar tactics to get my money.

Raymond Wand
Alton, ON
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Roy Cooke

Roys Home Inspection
NACHI Member: Yes
(as of 3/25/07)
NACHI Member
Posts: 1987
User: rcooke
Posted: Nov 25, 2005 4:57 PM       Post Subject:
vmitchinson wrote:
I know collect the money first icon_eek.gif


Vern you are the greatest . Good or bad you got paid . If it happens again you can now tell the client what you did and you will not hesitate to do it to him . Tell him this could cause him much grief and inconvience .
Bet they will not play games with you again . Love it .
Roy sr.
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Larry Ewens

All Certified Inspection Service Systems
NACHI Member: Yes
(as of 3/25/07)
NACHI Member
Posts: 840
User: lewens
Posted: Nov 25, 2005 8:12 PM       Post Subject:
Roy
I think you are mistaken. I have filed a lien on labour alone and was awarded my fee plus costs.
Larry
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Claude Lawrenson

Ontario Home Inspections Inc.
NACHI Member: Yes
(as of 3/25/07)
NACHI Member
Posts: 684
User: clawrenson
Posted: Nov 25, 2005 8:46 PM       Post Subject:
Reference to Ontario Construction Liens
http://www.langmichener.com/uploads/content/LMOntarioConstructionLaw0305.pdf

Was this a new home - construction just completed? That may make a huge difference. Additionally, the mortgage companies do not like "encumbrances" such as these claims represent - filed against the mortgage. It makes it a legal mess.
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Robert Francis

Shamrock Home Inspections, Inc.
NACHI Member: Yes
(as of 3/25/07)
NACHI Member
Posts: 196
User: rfrancis
Posted: Nov 25, 2005 10:04 PM       Post Subject:
Vern glad you got paid. I have warned 2 clients and agents that I would do the same PRESTO instant cheaque. There is another aveune I am looking into, it was suigguested from a contractor I am still looking at it as another path. It is stating a interest in the property and filing paper work in that I have a interest in the said property, well the house papers cannot go ahead and everyone gets upset and you get paid real quick I am still looking into that as I have not used it yet but its something to look into.
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Raymond Wand

Raymond Wand Home Inspection Service
NACHI Member: Yes
(as of 3/25/07)
NACHI Member
Posts: 447
User: rwand1
Posted: Nov 26, 2005 7:25 AM       Post Subject:
There doesn't appear to be anything stopping Vern from filing a lein against the new owner once he has taken pocession. But I fail to see how he can file a lein against the current owner who is not a party to the contract.

Raymond Wand
Alton, ON
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Larry Willick

CBI Canadian Building Inspections, Ltd.
NACHI Member: Yes
(as of 3/25/07)
NACHI Member
Posts: 149
User: lwillick
Posted: Dec 1, 2005 1:27 PM       Post Subject:
The prospective new owner is entitled to clear title upon possession date and this is where the lein comes in.

To force payment of services rendered.

Regards,
larry
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Vern Mitchinson

Home Choice Inspections Ltd.
NACHI Member: Yes
(as of 3/25/07)
NACHI Member
Posts: 48
User: vmitchinson
Posted: Dec 2, 2005 5:05 PM       Post Subject:
The house was built in 1998.

In Alberta you have 45 days from the last date work was preformed on the property to file the lien.

I would not have filed if the buyer, my client had not proceded with the purchase but in this case he had decided to purchase the property and filing the lein stoped the title transfer untill it is cleared.

I used the threat of filing a lien two years ago and the cheque that was in the mail for two weeks arrived three days later post marked two days before. eusa_naughty.gif
Still wondering why the post office marked the letter 11 days in advance. icon_rolleyes.gif
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Erby Crofutt

B4U Close Home Inspections & Radon Testing
NACHI Member: Yes
(as of 3/25/07)
NACHI Member
Posts: 1348
User: ecrofutt
Posted: Dec 3, 2005 6:01 AM       Post Subject:
Lis pendens??
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