# Getting paid through Escrow account, Any tips



## stombaugh85 (Jul 23, 2012)

Just bid a job and the customer says the money will come from an escrow account. This is my first time dealing with this situation. Customers says no money will be paid until job is done. No delivery payment for materials and no progress payment. Just getting paid when finished. Usually I get a delivery payment to cover materials then a final on roofs. How do you guys deal with business like this ?


----------



## CITY DECKS INC (Sep 4, 2012)

stombaugh85 said:


> just bid a job and the customer says the money will come from an escrow account. This is my first time dealing with this situation. Customers says no money will be paid until job is done. No delivery payment for materials and no progress payment. Just getting paid when finished. Usually i get a delivery payment to cover materials then a final on roofs. How do you guys deal with business like this ?


i don't deal with this. No money no job. Just tell him it's your business practice.


----------



## stombaugh85 (Jul 23, 2012)

The house is on the market and the escrow account is through the bank I believe which owns the house. The house must have a new roof on it before the new owners can get the loan. The future owner is the only one I have dealt with. 
I talked to the Realtor briefly and he asked if a paper verifying the funds would help . My view is if I am not going to get paid when materials show up I am not going to get paid when the project is done. Who knows how long it will take to get paid even. Any ideas how to handle this? Who signs the contract? Future owner , some at the bank,or Realtor ?


----------



## BamBamm5144 (Jul 12, 2008)

These are tricky. I would walk away unless you need the work and even then, I wouldn't do it because you may not see the money for at least a month. They will also make you sign a unconditional lien waiver before writing a check.

Simply tell them that it is your policy to obtain down payments. This shows a good faith relationship between both parties.


----------



## CITY DECKS INC (Sep 4, 2012)

we did a bunch a few years back but all money was held by realtor and or title company. i didn't have an issue with waiting until the job was complete. they paid right away, but I did know the realtor did several buy/sells in the past actually come to think it we did a lot of work in house. Like the other guy said if you can wait / float the job it' usually on the up and up except for the potential wait. Just make sure yo recap the process with them to make sure you are 100% clear of the details. 

If not no money no workie...:thumbsup:


----------



## Shellbuilder (May 14, 2006)

stombaugh85 said:


> The house is on the market and the escrow account is through the bank I believe which owns the house. The house must have a new roof on it before the new owners can get the loan. The future owner is the only one I have dealt with.
> I talked to the Realtor briefly and he asked if a paper verifying the funds would help . My view is if I am not going to get paid when materials show up I am not going to get paid when the project is done. Who knows how long it will take to get paid even. Any ideas how to handle this? Who signs the contract? Future owner , some at the bank,or Realtor ?


If the bank owns it, they sign your contract. I've done many jobs that pay at closing, don't be scared. Its better than a kooky client who calls you 6 times to pick a color and then wants you to change it after the materials are on site.


----------



## FerrisHI (Oct 20, 2010)

I've done enough of these...Never had a problem getting paid...


----------



## LCG (May 30, 2011)

FerrisHI said:


> I've done enough of these...Never had a problem getting paid...


Same here. Shoot that's all I did for two years in California is Real Estate work paid on Closing. The only tid bit of information I would add is:

If the home fails to close within 30day's of work completed the bank will pay the job in full regardless of where the closing stands.

With the way banks are dealing with loans these days there is no real guarantee the home is going to close.

I replaced a roof on one of my homes that is up for sale. We replaced the roof and the sale fell through the day before closing. They sent the loan to a new underwriter for finalizing and they pulled the cord. I was out an easy 3500.00.

Granted the roof was in bad need anyway but I had been holding out for the sale before I dropped the money into it. 

Now this was my own home that NEEDED a roof anyway. If I were the contractor awaiting the sale... Then what?

You had better make them sign paperwork stating if deal falls through you will be paid no matter what the outcome of the home is. I never used to do this but changed our policy when the market crashed.

It's usually a safe bet and I would rather deal with a bank than a homeowner. Just CYA


----------



## rsgmoser (Apr 22, 2013)

Ill have to look out for that, haven't run into it yet. Seems like it would be a pain though, good luck.

http://www.rsg-roofing.com


----------



## AndyWRS (Sep 12, 2010)

FerrisHI said:


> I've done enough of these...Never had a problem getting paid...


+1

If your concerned get something in wrtiing as mentioned by LCG.


----------

