Note: It is important that this letter be sent by the Inspector, not a third party. Third party debt collectors are subject to the requirements of the Fair Debt Collection Practices Act, and their demand letters must contain specific language.
I don’t release report until I have payment in hand. This however could be used along with the bad check agreement. If the check bounces and they don’t pay you, then this would come in handy.
Don,
No payment, no report. Simple and it works. Use ISN so you don’t even have to think about it. Realtors will see the report is ready, but they can’t look at it until the client pays, so now the Realtor is telling the client to pay! Free collection agents.
No payment, no report. But the report will dangle there in front of your like a carrot until payment is received!
My email to confirm the inspection says clearly payment is due at time of service with a link to play in advanced. So I’ve only ever had use the dangling carrot option once (so far).
Prior to this policy…Once and only once, a client that was present at the inspection “disappeared” near the end of the inspection, nowhere to be found.
Unbeknownst to him, I knew the exact home he currently lived in, and a knock on his door with a demand for payment handed to him when his family was home, had me a check the next morning. He was informed the report would not be sent until **his **bank honored/cashed his check in person. Not a heck of a lot he could say at that point!
So no payment no report works most of the time, but in cases where the buyer backs out of the deal and no longer cares about the report, that may not work. We currently have a pretty large inspection fee (had ancillary services done also) outstanding and clients refuse to respond to ours and agents phone calls and letters. Anyone know what our recourse is once demand letter is sent? Small claims court?
Check with your local police if they will accept a “theft of services” complaint and file charges against the client. It is a misdemeanor in most cases unless the money owed is very large.
From what I understand, some police will do it, others won’t unfortunately. Either way, I would send a letter to the client threatening the charges.