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“Is the Contractor Licensed or Not?”

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Mortgage and Lending with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869
“Is the Contractor Licensed or Not?”
 
When things just don’t make sense, who looks out for the best interest of the buyer? We were just about done with the approval process of a VA mortgage. The lender indicated they wanted a termite test, as it was not done as part of the home inspection. The termite report indicated there was some past infestation, but currently none visible, but there could be a structural issue.
 
protecting the homeownerThe listing agent had “someone” go in to repair two beams in the basement. We then received a paid bill from a person, without a copy of a license. There was a license number, but the number looked like it was written by someone different. We crosschecked the state database, no such person.
 
I sent out an email to both agents and explained what we got was not acceptable and explained why. The selling agent was rightfully upset and the listing agent didn’t understand the problem.
 
I told the listing agent that if the sellers wanted to sell the property, that a “LICENSED” contractor had to verify that the repairs have been complete properly. 4 days later we received a new paid receipt for the work, a letter to verify the repairs were made and a set of photos.
 
I know stuff like this happens, but not on my watch. Everyone in the real estate and mortgage business has a responsibility to protect the best interest of the consumer. I have no tolerance for deceptive business practices.
 
image courtesy of ambro/freedigitalphotos.net
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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comments (26)

John G. Johnston
John G. Johnston & Associates, LLC - Westcliffe, CO
An Exclusive Buyer's Agent ~ Westcliffe, CO

Joe Every CE course I take talks about litigation and it is always an agent that pays.  Someday, no probably not.  Enjoy your day!

Jan 25, 2014 09:20 PM
Shannon Milligan, Richmond VA Real Estate Agent/Associate Broker
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.

This irritates me to no end. In an addendum I write all work to be done by a State Licensed Contractor, we all agree, and then when I get the receipts the seller/listing agent didn't use them. I check receipts and they are often mad that I do. That's my job. It is nice to see others do right by the client as well!

Jan 25, 2014 09:28 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Tennesse has really tightened up on this type of thing. Not only do they need to be licensed but they need proof of insurance too.

Jan 25, 2014 09:34 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Joe good job!!!

It is amazing what people try to get a way with, and some how think everyone else is a sleep at the wheel.

Jan 25, 2014 10:30 PM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

That can happen so easily. You can go on the state website and check out these license numbers.

Jan 25, 2014 11:10 PM
Rebecca Gaujot, Realtor®
Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Joe, I know you have no tolerance for deceptive, that is why I would like to clone you!  You watch out for your clients and make sure everything is properly done right.

Jan 25, 2014 11:18 PM
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

I have seen it happen all the time Joe, also permit issues. I always get my buyers asking for a contractor and the person I use does everything by the book. Because of that he charges more then some guy who moonlights as a fix up man and can do anything. Unfortunately often the people are going the cheaper route.

You get what your pay for.

Jan 26, 2014 12:14 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Joe,

Glad to hear you are so vigilant on behalf of your clients.  I have never understood why people are so unwilling to do things perfectly rather than having the focus on saving money.  A

Jan 26, 2014 01:17 AM
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Great work Joe. When a lender provides back up like this to an agent how can they do anything but succeed. Not many lenders go to the lengths that you do. When areyou going to open in the DFW area?

Jan 26, 2014 01:53 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Agents wonder why UW is so particular at times.  Well it's stuff like this (refraining from using an expletive) that makes them particular.  Just do things right the first time and the rest will be smooth sailing the rest of the time!

Jan 26, 2014 02:19 AM
ReadySetLoan Team
ReadySetLoan Condo Team LLC - South Windsor, CT
Residential, Commercial & Condo Financing Experts

it's amazing that someone would do this but great that you caught it.  Something similar happened to me in 2006 regarding the cleaning of a furnace and repairs to its flue.  The contractor didn't exist.  I think that the listing agent was in on it.  Shame shame.

Jan 26, 2014 03:47 AM
Tom White
Franklin Homes Realty LLC (615) 495-0752 or www.FranklinHomesRealty.com - Franklin, TN
Franklin Homes Realty LLC, Franklin TN

Joe, hearing something like that is always upsetting. Good thing you were on top of it, but the listing agent really should have been the one to make sure it was done right in the first place! 

Jan 26, 2014 07:34 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Joe, I have no tolerance for deception either. There is far too much of it going on. I read things like this and I just shake my head ... and think ... slime me a river.  It just makes me sick.

Jan 26, 2014 12:22 PM
Rosie Crow
Serving Sugar Land, Richmond, Rosenberg, Missouri City - Sugar Land, TX
Exceeding Expectations. Delivering Results

In the Texas sales contract, all inspections and repairs must be made by a licensed professional. I am pretty sure that is the case for every state. The listing agent should have known better than that. 

Jan 26, 2014 02:54 PM
Rosie Crow
Serving Sugar Land, Richmond, Rosenberg, Missouri City - Sugar Land, TX
Exceeding Expectations. Delivering Results

Joe - Are termite inspections required for FHA and VA loans? I think with conventional,  it is not a requirement unless there are signs of active infestation. Just double checking.

Jan 26, 2014 02:56 PM
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

The seller got stupid on you Joe.  What a surprise.

Jan 26, 2014 07:25 PM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Joe, it comes down to just being cheap...I hear all the time about friends who can do the work and explain to them it is not acceptable but people still try.

Jan 26, 2014 07:37 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

This is why you continue to excel in this business, Joe.  You protect the best interests of your clients.

Jan 26, 2014 07:51 PM
Maria Gilda Racelis
Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington - Manchester, CT
Home Ownership is w/in Reach. We Make it Happen!

Hi Joe: That is an extra mile you did for the consumer. The listing agent should have also advised the seller that the works should be performed by a licensed contractor and there is no way around. No cheating allowed. Don't they understand that not using a licensed person is a mistake and action that could come back to them.

Jan 26, 2014 07:53 PM
Shanna Hall
Real Estate Solutions - Kirkwood, MO
I love selling houses!!!St. Louis, MO 314-703-1311

Joe- this is an excellent point!  I always ask for copies of the repairs and that all work to be completed by licensed bonded and insured contractors. 

Jan 27, 2014 12:43 AM