I have been searching for a post about when a HI doesn’t get paid and who pays…if anyone knows of it please link it. …I’m still searching I want to know what all the comments were. Who is responsible and any type of liens can be applied to the sellers home or is it just who orders it. This has not happened to me.
Based on if it’s included in the closing.
Did you release the report to them
You can place a lien on the property if they close. If not, you can try small claims, but either way you are chasing money by spending money. Most do not allow it to go to closing anymore.
Larry, So if the buyer ordered this HI to be paid at closing and they backed out, the HI can put a lien on the property? When the buyer ordered it?
A lien can only be placed (on Real Estate or Real Property) against the current owner. Unless your Client is the current legal owner, you are SOL.
When accepting payment at closing you need to get a check or credit card number for security. Placing a lien on a property is way too much trouble and hard to collect.
As Jeff said if the sale doesn’t go through you’re SOL.
Lesson to be learned… NEVER release a report without being paid.
If they have the goods and don’t pay you are left with little recourse.
Fortunately the only loss will be some time and some gas
Ok, so I guess if the buyer orders it and then backs out in the closing, the lien can be put on the seller for the buyer not wanting to pay for it??
It’s almost tax time your accountant should be able to get it written off.
No…
No. You have NO contract with the seller, or anyone else other than your client. Your client is the only entity that you may attempt to collect from. You have NO legal right to attempt collection from any other party! YOU MAY ONLY ATTEMPT COLLECTION FROM THE PERSON THAT YOU HAVE ENTERED INTO A CONTRACT WITH. PERIOD!
Look into filing a police report for theft of services and contact the debtor and warn them that you will do that in 10 days if payment is not made.
My policy for several years has been, no payment-no report. It really works great! Paid always.
Same here.
I’ve had clients, even though I tell them to bring a check or cash to the inspection, conveniently “forgot” to bring their checkbook, or cash. They ask if it’s okay to just mail me a check. “Sure-no problem”, I say, “I will email the report to you as soon as your check clears”.
I’ve had ONE client in 7 years who didn’t mail a check. And he didn’t get the report. Unfortunately, he did attend the inspection, so he knew the findings without receiving a report.
Lesson learned. Now, I ask for payment BEFORE the inspection begins. In the rare event they don’t have it with them, I go through the inspection, taking notes, and don’t tell them much of anything they can’t see for themselves.
JJ…Here in NM… My wife and I understanding is that most HI is through closing cause the realtors are trying to control it this way. And if the buyer backs out of the deal for reasons something in the HI let’s say They won’t have to pay. Now it’s on the Owners hands for possible reasons their are no standards here or licensing. And get this I found out reading this persons contract the realtor wants half of the earnest monies if they were to back out without justification and losing that money.
I being a HI I understand that the contact IS BETWEEN THE CLIENT AND THE HI ONE WOULD THINK YOU WOULD GO AFTER THE BUYERS PROPERTY or other options right? I believe it’s worded in the closing some how that the sellers would be responsible. Is this even possible??
Michael, excellent point!!
NO! Never.
Gary, a contract is a contract… and there may be terms stating what you just said, in the Contract to Purchase between the Buyer and the Seller, but that’s the rub, you are not a party to their contract. You have a contract between you and your client. That is the only contract you may attempt to enforce. You can try your damnedest to compel your client to follow through on the other contract so you get paid, but IMO, you are simply SOL. Accept the fact you got screwed, and change your company policies to be sure it never happens again. To hell with what the Realtors want. Why the hell would you allow anyone to dictate to you how to run YOUR business. Heck… send a statement to the Realtor that convinced you to wait until close to get paid. I guarantee you will never hear from them again. Good riddance!!!
You can also report the client to the local credit bureau.
They might have a problem getting their mortgage with a bad credit report.
Cheers