We are working with an investor that hired us to do a couple of their rehabs. The investor had work order changes and delays on decision. Although I can take blame for roughly 2 weeks of slow production in their project due to the storm here in Houston. The owner keeps bringing up that I am responsible for their loan interest fees due to project going past the timeline. Nothing was in writing stating we are responsible for that timeline yet he is wanting us to pay for it or is holding money on actual work completed. I wanted to see what legal stance he has on this?
Hello!
Whether they have a legal stance depends on the language in the contract. Generally, it is not proper for the Property Owner to back charge for loan interest as that is not your problem and delays in construction happen all the time.
Lien the property for unpaid amounts and move forward. If they want to make that argument, they can make it in court after having accrued attorney's fees, not been able to sell the property, and getting otherwise tied up. Your attorney should also file a lis pendens as soon as someone starts a lawsuit. Those cannot really be bonded around and no title company will write a policy for a property with a lis pendens on it. Generally.
E. Aaron Cartwright III
214.799.0776
Info@EACLawyer.com
We have decided to part ways with our relationship with the investor due to differences on responsbilities with the project. I sent him a form, releasing him from our agreement. The form states that I will reimburse him all money that he paid us, minus work we completed. He sent me a proposal which ultimately cost us $5,000 in work we finished but isnt showing we are credited for that, but I am willing to sign it if he signs our hold harmless agreement. He acknowledges that our work was done in satisfaction but believes we should somehow be responsible for his personal loans. I then explained that if he doesnt sign our hold harmless letter than I am willing to send out a consultant to put together a scope of work and monetary number for work completed. I will want a legal rep send him a letter certified giving him awareness of the situation and I believe I have up to 30 days. I dont want to do all that and just want to credit him the balance I owe him but I need leverage for him to sign my hold harmless agreement. If I just need to pay a lawyer to throw a certified letter at him, I will. Thanks