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How do i recoup 2.5 years of renovating a home as a project manager /design consultant

CaliforniaRight to Lien

I am a real estate agent that sold a home to a client in Los Angeles the buyer was a contractor and Architect but had no source in Los Angeles. I informed him that I buy and sell property and have a team that I have developed over the last 25 years. I told im i normally charge a fee but he represent that there would be more deals to come. What should have been a 7-8 month renovation it was dragged out to 2.5 years. My trade men and sources did about 80% of the work. I had always told my client that this would be a 10 to 10.5 million dollar home when done. Unfortunately as it took shape he wanted more. The last 6 month of the project we difficult as I want to get the home staged and on the market ASAP as the market itself changing. A the last minute I found out from my workers that the owner was moving in to the home. This was not the deal this was a spect home. I had put 2.5 years of sweet equity in this project to show what I could do in good faith as the owner had told me that there would be other deals. The only way is was going to get paid and to recoup my time was via the commission from the sale. The problem was the seller decided to move in. When it came to to put it on the market it was like a game He wanted 2 million more than it was worth. I argued with him and his wife that there value is not there. He told me take leave it he will give the listing to someone else. I had no chose but to take an over price listing in hopes to recoup my time. It was listed at 11,990,000 Everyone who saw it all said the say thing to me "Why is this so over priced". We had 5 showings in the first 6 months. THAT IS TERRIBLE. I said to him that if he wants to keep the home that is his right and that he need to then pay me for my time and help over seeing this project. He asked me how much I wanted, I told him $150,000. " You can whistle Dixie" he said and hung up on me. Mind you I have work for free for 2.5 years and then spent 9 months( Listing) and another 15,000 in marketing fees trying to sell an over price home. At one point he kicked me out of the house because I asked him to reduce the price to make it more sellable. I again ask him then to reimburse me for my time and he kicked me out of the house yelling and screaming at me saying "You did nothing other than to introduce me to some trades people". I told him if I don't get paid I will file a mechanic's lien Then He wanted me to then co list the home with another agent. I said I don't need help selling this home its OVER PRICE and all the other agents have told you that. I later found out during my open houses on Sundays that he was using the home to meet other women. Which lead me to believe that's why he didn't want to sell the home. My family friend in he's 80's said that there is a term called Unjust Enrichment. The owner said I have nothing in writing and there is nothing I can do. This has created financial hardship for me I have countless e mails videos and estimates for work to be done under my name, as I meet with 99% of the other trades men. Please let me know if you can help

1 reply

Apr 22, 2020
There should be recovery options available even if there isn't a written contract on the project. With that being said, keep in mind that real estate agents are generally not able to file mechanics liens. Mechanics lien rights are available to those who permanently improve the property. While a real estate agent may coordinate trades and contractors to some degree, there are some key obstacles in the way. For one, a real estate agent typically doesn't do any of the physical improvement themselves. For another, coordinating work as a general contractor is lienable - but, generally, only licensed general contractors can file mechanics lien claims for that kind of coordination. There's some grey area in California mechanics lien law regarding construction managers, the ability to lien, and the requirement for a license - but again, I would suspect that a mechanics lien field by a real estate agent would end up invalid and unenforceable.

Other recovery options could be on the table

With that being said, other recovery tools could be useful for getting paid. Sending a payment demand letter will usually be pretty useful since most owners hate to litigate. But, when working with a high dollar client, the threat of a lawsuit might not be all that scary. Still, sending a payment demand letter that threatens legal action and puts a dollar figure to what you're owed could at least be a solid starting point for negotiating payment before an ugly dispute unfolds. In terms of actions that can be brought - if there was a verbal agreement that was broken, then a breach of contract claim could still be on the table. Though, if the terms of the agreement weren't really concrete, that might be an uphill battle. For background on enforcing a verbal contract: Is a Verbal Agreement Legally Binding in California? | Liljegren Law Group. As you mentioned above, though, unjust enrichment could certainly be a path for recovery. Unjust enrichment allows claimants to recover what they've earned even if there isn't an actual contract for the work that was done. So, if valuable services were provided to a client and if that client refuses to pay for those services, then that could be a useful legal claim. For a breakdown on how unjust enrichment works in California, here's an excellent article from Brian J. O'Grady: Unjust Enrichment Claims Give You a Right to Recover Without a Contract. Finally, considering the values involved in this dispute, it'd be wise to consult with a California construction or real estate attorney about your best bets for proceeding to get paid. They may have experience in similar situations, and they'll be able to look into the details for your situation and provide more insight.
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