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MECHANICS LIENS ARE POWERFUL AND EXPENSIVE FOR HOMEOWNERS

By
Real Estate Broker/Owner with people first...then business Ran Right Realty 636943 licensed to thrill

I hired a man to do some concrete work at my house. The work and the price went well and I paid as soon as it was finished. I told the man that I would refer him out and wished him well. I get a letter in the mail a week later stating the intention to lien my property for the actual concrete materials. I explained there must be a misunderstanding, the job has been paid and do some home work. Don't contact me, contact the one who ordered the concrete

I AM LIEN-ING YOU

I didn't hear anything back for 3 months until I received another letter in the mail with a deadline to respond or a lien will be filed. I called the hardened seasoned woman at the concrete supply company again , went over the whole scenario and she stood her ground citing Mechanics lien laws and I should have known better....Oh really?

HOLD THE MAN ACCOUNTABLE

It turns out that the owner of this large concrete business lets his men order concrete for side jobs using his contractors license number and account with the concrete delivery people. When I paid this man, he never paid the concrete delivery people. They in turn come after the homeowner (me). When I found out that this account was big business to the concrete company, I told this woman do not give them anymore concrete until they pay this bill. That is how simple it is

IT'S MY PROBLEM

She said I cant do that because they are a very big customer of theres and she didint want to offend them. WHAT? I am afraid you will have to pay or be lien-ed. I told her you cannot selectively decide who pays and who doesn't and then go lien peoples homes and she said yes I can and started making one-sided demands and looking for an excuse to hang up the phone. Sir, it is your problem

SHE IS RIGHT

Legally she is right about getting paid if she supplied labor or materials to a job. However, I didn't order those materials. She claims well when a large concrete truck pulls up at your house, what do you think that is? I said I thought the guy who is doing the work owned that. I didn't know anyone else was involved. However instead of calling the people who ordered it, she is selectively coming after me while that company continues to order concrete for other jobs like nothing happened

OKAY...

Well I hate to do this but when I have too, well I have too. Mam, I didn't call to argue. Here is my final position on this matter. I paid the man who did the work. He works for your large customer. They know he ordered the concrete and so do you. DO NOT LIEN MY HOME as stated or I will file a lawsuit over your business practices and name everyone I can think of...

IT WONT COST ME ANYTHING...BUT YOU ARE IN FOR A SURPRISE OR TWO

She wouldn't let me speak cutting me off in between sentences so I had to kick it up a notch. Mam, my son is a prominent local attorney who will have the final say when he orders your books into court, deposition all people involved and go into detail about your business practices and your threats and intimidation wont work. Now get the guy on the phone that I paid along with his boss who you claim is a large customer of yours and back me up instead of letting your large client slide here

SHE DID WHAT I ASKED

She did a 3 way phone call with the guy who did the work, the owner of this large concrete firm (her big customer) and herself and the man admitted he was paid, apologized and said he would pay right away. The owner of the company, who lets his men do side jobs using his account and connections let him have it stating you are embarrassing me with my customers by not paying.

ANYONE WORKING ON YOUR HOME HAS LIEN RIGHTS

I was lucky because I had an attorney and I was technically also in the right. The moral of the post is that when having any work performed on your home, all doing the work must get paid. Joint checks is usually the way to go and holding back some money for a few days or at least during the lien period is not uncommon

Maureen Bray Portland OR Home Stager ~ Room Solutions Staging
Room Solutions Staging, Portland OR - Portland, OR
"Staging Consultations that Sell Portland Homes"

Richie ~ standing your ground and knowing your rights was the way to go!  What a bully that man was to think he could get away with his outright scam.  And the woman?  Glad you set her straight, too!!

Jul 23, 2013 05:13 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

WOW -- what an ordeal.  It sounds like a shake down if I ever heard one.  Had you not been the Dad of the prominent local attorney (and most are not that fortunate), I would suggested your file a complaint with your State's Contractor's Board - the owner of the company let's his employees use his account to order supplies for side jobs.  OY VEY!!  Then I'd also suggest you file with the Attorney General too, because with the hard and seasoned woman, I wonder how many senior citizens they duped in this manner? 

Jul 23, 2013 05:16 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Richie that is something I would have ever thought of.  I would have expected the person or contractor who actually ordered the material, would be the one liable for the payment.  You were the recipient of the material, but not the one who directly purchased it.  So I learned something new here.

Jul 23, 2013 05:23 AM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Richie: Mechanics liens are tricky. Thank you for pointing out that you need to pay the "concrete" (in this case) separately unless your contractor hands you a bill that says "paid in full". Oh, and you still need to check that.

As to real estate agents, don't have ANYONE deliver material to a home on behalf of a buyer until AFTER the closing. Or the SELLER is still responsible for the bill--if the buyer doesn't pay for it. And variations thereof.  

Jul 23, 2013 05:54 AM
Tamara Inzunza
Realty One Group Capital - Alexandria, VA
Close-In Alexandria and Arlington Living

Wow, thanks for sharing this story.  How stupid of this woman to come after you knowing that you had paid.  I hope you also recorded the conversation.  Glad you came out on top.

Jul 23, 2013 05:54 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Tammie...its so subtle it sneaks by. I paid the man who did the work sure. However, he ordered the concrete. She is not disputing that I paid him as much as she is saying...NO ONE PAID US and that makes it the homeowners problem..

Andrea...you try this in other countries and they arm and revolt...Here, everything gets litigated and then resolved...thank you A

Hello Fred...His comment makes him a case in point thank you Fred...Let me say that the final word may just rest with the title companies who when it comes time to pull a policy may demand liens get paid or take them off...My son the attorney handled a fellows recent refi and that guy had $60,000 in liens on his home...Whoa

Maureen...you are so good. The man pulled a whammy and the woman dealt a hard poker hand...Now, I ask you, can the normal simple average American out there take all this on or even know about? Always have an agent on your team even between deals just to consult with

Carla Muss Jacobs...yes to your premium commenting...I will say this. The woman did take my advice and prevail and did call me back happy and triumphant that it worked. In other words, I helped her outlook on-life too...

George...Many years ago, I once got into a dispute with two people who worked at my house. I thought we settled it but instead years later when the house was sold, theri claim showed up as a lien and they paid them out of escrow. I was amazed that they liened me and even more amazed they collected years later...Whoa

Hella...everyone read this ladies comment for it is spot on...Yes Hella

Tamara...When it comes to people, credit, hard business and paying as agreed, in America it can get dicey.....at times

 

Jul 23, 2013 06:34 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

 

LADIES & GENTLEMAN

If you hire someone to work on your home and they show up with a crew, YOU need to get everyone's name working on the job. If they don't get paid, they have lien rights. It is standard procedure for anyone who worked on your home to sign a release or waiver when paid.

Jul 23, 2013 06:37 AM
Bryan Robertson
Los Altos, CA

I absolutely love how you handled that!  Stand your ground and don't let the legal technicalities bog you down.

Jul 23, 2013 09:13 AM
Aaron Hofmann
Atlanta Communities - Smyrna, GA
aka Mr. Smyrna Vinings

Wow. That's some shady business practices there. Wonder how many homeowners that they manage to scare into paying for fear of having a lien placed.

Jul 23, 2013 09:32 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Richie, I am glad that this situation was resolve, it makes me wonder how many other victims of this practice of extortion were forced to pay twice for the same service. 

Perhaps a newspaper or regulatory agency should be contacted to help the other victims who are less skilled at protecting themselves than you are.

Jul 23, 2013 10:07 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Richie, what a nightmare, and the homeowner is held responsible when the contractor did not pay - amazing!

Jul 23, 2013 10:41 AM
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Richie -- thanks for the reminder, my mother-in-law is looking at getting some concrete work done, and we don't want this to happen to her.   Another approach I have heard of is getting the contractor to sign document that they are responsible for all subbed work, and they don't get final payment until they provide receipts showing all subs have been paid.

Jul 23, 2013 10:53 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Bryan...Thank you and looking back, I liked it too....I still like it

Aaron...I look down on people who cajole, threaten and intimidate when just the act of coming together and reasoning produces much more

Bob..it sure does get you to thinking about a lot of things...Real Estate and its related dynamics require constant awareness

Joan...yes it is true and its a survival of the fittest tactic...What this tells you is that people are struggling to make a living and in desperation start preying on others to survive. Whoa

Hello Steven...yes to your commenting. Remember however if someone comes knocking at your door and says the contractor never paid me, the ball is definitely in your court in that very moment unless you take the necessary precautions

Jul 23, 2013 11:26 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

This is a very informative post.  I had no idea that this sort of thing could occur.  Thanks for the heads up. 

Jul 23, 2013 12:08 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M
Richie - Well handled. They were simply seeking to intimidate, and you didn't allow it.
Jul 23, 2013 04:06 PM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Rich, strange that the lien is from a company who you never hired to do the work. Not sure on what ground they'd put the lien!

Jul 23, 2013 04:10 PM
Tracy Oliva
West USA Realty - Arizona - Fountain Hills, AZ
The Oliva Team Arizona Agents

Good Morning!! This is some great Info for all,  keep up the good work and good luck with your sales,  E

Jul 23, 2013 07:48 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Knowing what side of the law you are on is very helpful.....and unfortuate it has to come to that when the woman clearly had other ways of solving the problem.

Jul 23, 2013 09:21 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Joan...your very welcome

Christine...it is as simple as you say...thank you

Praful...The law comments on your relevant commenting...It protects people who do work on a home or project and don't get paid...

 

Ed & Tracy...good of you to stop by..thanks a bunch

 

Sally & David...excellent observation your part...The woman was in a rut beaten into it by the toughness of the business she is in....This helped her discover other points of view and remedy....Yes to knowing your rights too

Jul 23, 2013 11:25 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Jent...a leader in the field of customer service and someone you would want to look into when considering having licensed work performed

Jul 25, 2013 11:53 PM