Property Owner Is Selling!! Mid-job!!

Thor_Keck

Help guys...

I have a signed contract and a deposit, but the owner has a buyer for the building and is selling in a couple of weeks.

How have you all delt with this situation in the past?

I was told by a businessman to put a lien on the property for the total contract amount and then they have to keep my $ in escrow while selling takes place normally. I like this plan but how does one lay a lien against a property here is Harrisburg, PA.

Thanks everyone,

Thor

ProWallGuy

Contact a lawyer ASAP.

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Teetorbilt

The signor is responsible for the contract. What happens afterwards has no reflection on you.

You can renegotiate with either owner or hold the signor to the contract.

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paintr56

Is there any way for you to come out whole and let the owner sell? Have you started the job? I had a signed contract and deposit on a job last summer same thing it was sold. The owner called and told me. I told him if I could fill the space I would return the deposit. I could and I did. I didn't have to I just felt it was the right thing.

Jim Bunton

Thor_Keck

Wow Thank you guys...

I started two weeks ago and am due for about $4000 more in two weeks and the final $4000 when completted. This is tough because the owner and I are friends, but I told him, and anyway it goes without saying that business comes 1st.

My sons B-day is tomarrow and the owner and his daughter are coming to Chuckie Cheese's wth 15 other 3 and 4 year olds to play. I was really happy with the bid agreed on and had the job's expenses covered 200%. So I was all set to make some real money (finally) AND THE BAR TENDER OF THE REASTAURANT downstairs that I've worked with on and off for about eight years tells me that the only reason he still works the bar there is the owner promised him $2000 "after the place is sold 6 weeks from now" just to keep the bar open and making him $ FLOW.

2:30 pm Friday afternoon the city inspector told me that the existing framing needs Fire-protected across the entire North wall that it shares with the next building. 2 layers of 5/8" or 600 ft^2 extra work. I stated in the contract that this was possible and is a change of conditions which will be disscussed as an add-on... anyway I'm submitting Add-on contracts Mon. and they have to address them this week or Work cannot progree any further.

I need a lawyer huh... Can't I put a lien on the property as an unpaid contractor and force the owner to at least be straight with me and not hold information bck from me?

AAhhhhhhhhhhhh!

Thor Keck
Attentive Services

mdshunk

Bummer. Harrisburg, huh? My former stomping grounds.

I roughed a new house about 2 years ago, and never got paid (not a super big deal). The owner/builder is in jail for something else. Last week, I stopped in that house and saw that someone else finished it, and it's up for sale (now, that's a big deal). I might be out of luck with a lein, since it's been so long. I'm going to try, though. I was sorta waiting until the guy got out of jail. Never thought it would be so long.

mdshunk

You don't necessarily need a lawyer to file a lein in PA, but your chances of missing something important doing it yourself are great. Miss dotting an i or crossing a t, and your lein filing is viod. My lawyer charges a flat 250 bucks for a normal resi lein. Drop in the bucket compared to what you're on the hook for. With the lein filed, you'll either get your money at the sale's closing table, or the sale will fall through. (I privately wonder if you can file a lein at all yet, since you aren't technically overdue for any payments. An even better reason to stop by an attorney to protect your interests by other means, possibly).

JustaFramer

Is it posible that that the work that is being done is part of the sales agreement. When I sold my house I have a 1500 dollar carpet allowance. That was done prior to closing and the the contractor would be paid at closing. Don't get your panties in a bunch. Talk to the guy first before you lien.

Thor_Keck

wow thank you all very much later this evening I'll reply to lookloaner and diggler... Mabye I don't understand why I'm at fault??? But I do need the work and spent a lot of time landing and designing the job... Got the contract signed waited two weeks to get a deposit and now two weeks later I hear from someone who works there that the place is sold... In one week I expect another $ draw from them and some add on stuff that i started already (in good faith)...

I really not sure how I'm not being "the good guy" I'm just asking if I can finish up and expect to be paid for two months of G.C. and Carpenter work.. Do I tell my Subs... Do I stop work...

Do I wait for the owner to say something...

If he doesn't say anything how long do I wait to place a lien????

I think I'm beimg reasonable here lookloner I'm not looking to mess up his deal with the buyer but like diggler said business comes first. My family comes first... Or should I work without a net like loner says and hope this guy pays me???

Thor_Keck

Thanks for your help Jim... Yes the job was started.... The owner won't tell me I had to find out from my neighbor/good-friend. The deposit is 2/3 gone and in one weeks another deposit is due (as per contract) ... Fillinfg the space in my calender is really hard since I'm 1 1/2 years in business and have only a bunch of outside work to do (todays temp. here 17 F.), Two small roofs.

Hey thanks for your input I want to be helpful if he is selling... But he should tell me... right.

Frankawitz

Thor
Business is Business and personal is personal don't let the friend thing get in the way of your livelyhood. Put the lien on the building if your friend is a stand up guy you will get paid at closing. I did a job for a Dentist named Dr Tom Brennen and we had a contract for a 79k job we went in and did 3/4 of the work in his house and when we came up short on hardwood flooring cause we used the Insurance adjustors numbers, the clown pulled a fast one on me, I had to order two cases of Bruce's hardwood flooring well while I was waiting on the order to come in he turns around and hires a another company to come in and finish what I was working on, changed the locks so we couldn't get in the house. I called him and he tells me he would give his word that after the house was sold he would take care of me, I took his word like a asshole and got stiffed for 35k so don't give this guy any wiggle room or you might give burned.

Thor_Keck

Panties are unbunched my friend... He hasn't told me about the sale yet... He only told the restaurant manager when he went to quit... so $2000.00 bribe keeps the manager in place until closing (estimated one month away). The manager and I have been the kind of friends that look after each other for ohh 7 years. He told me in confidence of his deal with the owner. I have one week of work left before I am due scheduled $ and will be handing him an add-on folder with @$5000.00 of extras (mostly mandatory) tomorrow. I would love be included in the closing but he has to come to me about all this first right.

Thanks for your input, it really is a big help,

Thor

Frankawitz

Like I said Business is Business have your bases covered, Can you afford the loss? that is what I would ask yourself. Yeah he may be your friend but I would also look to what others have said with their dealings with him, But I would cover myself just because I already took a persons word I would be treated right. BS! You should put yourself in a postion to carry on the work with the new owners as well, Talk with a lawyer have them write up contract for you.

Thor_Keck

Thank you... I've got a week untill I have to decide what to do. I'll right up the change orders and send them via e-mail and call him untill he has read it. I hope he is waiting to tll me because he is securing my contract but I'm told that he is not in the business of caring 'bout his partners in business.

Thor_Keck

where on this site (and possibly others) are there examples/pieces of contract that seem better than most?

Thewoodman

Thor

In reading through these posts it looks like you have not actually talked to him about it yet.

So here is my advice: First have a realtor check out if the building is actually under contract so you know for sure. If it truely is then with that knowledge now a fact sit down with him and tell him that you heard a rumor that the building had sold. If he denies it than you now know that you need to take legal action.

If he admits it then congatulate him for being able to sell it. Then I would ask him straight out, but politely how this is going to effect the work that you are presently doing. If he wants you to continue then suggest getting with the title company and having your money escrowed, thus making sure you don't get the shaft.

I have found out in life that we sometimes spend so much time worring about what might happen, instead of just finding out the facts.

Good luck with this and remeber no matter how it turns out it will give you new insight next time something like this happens.

Mark

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JustaFramer

Thing about commercial work is if the fire code is not up to date. Then the new owner will not be able to open till the fire marshall buys off on the building. Because a permit was pulled then there is no room for grandfathering. It seem funny to me that the architect or the engineer didn't pick up on the 2hr fire wall requirement. Which is usually 1 hour protection ( 2 x 5/8's type x)one side of the partition wall and the 1hr on the other.

Usually the inspector will require that that the space being renovated at the the time be brought up to code while the other opposite occupied space is grandfathered till they want to do renovations.

Bob Kovacs

If your buddy starts jerking you around (something we can't confirm, since you haven't even confronted him on this yet), just go downtown and withdraw the permit. Let the building department know that the building is about to be sold, and that there are major code violations (mention the fire code- they really like that) due to the unfinished work. With any luck, that'll keep the sale from closing.

You did pull a permit, right?????

Bob

Thor_Keck

Yes I have all the permits... But bob that sounds dishonest and I want to secure my work, and not stop the owner from making the sale... I figure that the new owner will have to use me if the money is escrowed at the closing. That way I can relax and just work, and not have to worry about finding work for March twice and late in the game... I thank you for your input though.

THOR

Thor_Keck

but yea the building won't pass fire inspections right now... hmmmm