# Homeowner won't pay



## JohnBurns

Hi gang. I guess it might vary by state, but wondering what I can do about a homeowner that won't pay me my final amount. I built a great deck and gazebo for this person and it does not look like they will pay me my final amount. Legally, can I start taking the deck back, or since it is attached to his property, would I technically be stealing? I don't have the time or money to sue him and I don't want to get thrown in jail either.


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## Framer53

JohnBurns said:


> Hi gang. I guess it might vary by state, but wondering what I can do about a homeowner that won't pay me my final amount. I built a great deck and gazebo for this person and it does not look like they will pay me my final amount. Legally, can I start taking the deck back, or since it is attached to his property, would I technically be stealing? I don't have the time or money to sue him and I don't want to get thrown in jail either.


 
Don't touch the deck, unless you want to spend a little time in the local jail.
First you must isolate the reasons why they won't pay, then try to take away the objections. For example, if they wand some small change, it may pay to humor them.
Failing to please them, you can lien the property, and or take them to small claims court.


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## SelfContract

First & formost.. introduction??, then license & contract ready in hand??... then will ask/talk/discuss later.. :whistling


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## JumboJack

What is the reason they don't want to pay?What does your contract say?Are all your ducks in a row as far as license and insurance for your area?


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## JohnBurns

*homeowner won't pay - contd*

Hi gang -

A little more background...

We delivered the job two weeks late (mainly material supply and weather issues). Our contract is complete now but the homeowner asked that we put stone under the deck a few days ago. I said sure we can, I will work up the price. Homeowner refuses to pay because he says he does not have confidence that we will get the stone done in a timely manner. He agrees that it is not in the contract, but says he needs to hold my remaining $5000 hostage to ensure we do the work. To get my money quickly, I have to run around getting stone for him to look at and then mobilize to put it in. It's only about $600 worth of labor and materials, yet he is holding 5k hostage. I won't do anything until he signs the extra, of course, and I am keeping my fingers crossed that he really will pay. That's why, if he does not, I want to say "ok, guys, start taking the deck apart"


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## 480sparky

What the HO is asking for is an additional contract. If you have completed your contract for the deck / gazebo, then you need to be paid. The stone is an extra, and he HO cannot legally withhold payment for the deck / gazebo because of a second contract.


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## Fence & Deck

Happens all the time. Customer gets to thinking that he's paying too much, or he wants something extra, and then refuses to pay until he gets it. I get it several times a year. You can either suck it up and do it, or stand on principle. If it's $5000, just get a change order signed and then do it. It they still won't pay, take them to court.


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## TheCleaningDoc

You will have to take him to court if he does not pay. Also sue for legal fees and court costs. Then after you win put a lein on his home. Can't sell without paying you first.


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## concretemasonry

Who is the contract with? - You or the material supplier?

Do you have a contract with the homeowner and what does it describe for the project?


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## J F

you don't need to win a court battle to file a lein :no:


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## 517group

tight spot. if i was in that situation $5000 is more then $600. take a gamble and put the rock down and see what happens.


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## Anderson

$5,000 sounds like alot for final on a deck. If he doesn't have confidence that you can do the stone in a timely manner than tell him yes he is right he should get someone else to do that.


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## 517group

Anderson said:


> $5,000 sounds like alot for final on a deck. If he doesn't have confidence that you can do the stone in a timely manner than tell him yes he is right he should get someone else to do that.


just thinking that. it must be a huge deck


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## brcon

It always helps to have a witness when talking to a HO who won't pay. Ask him straight up: if I put the stone down, will you pay the final $ 5K ?
If he says yes, then go for the extra $600 and take the payment. If he still won't settle, bring that witness into small claims court; you'll have a good case.


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## Hoven

Tell him deck is done and pay up. That part of the contract is up. You can put a lien on his house and you may get your money if he goes to sell or refi. I would also check to see what the limits are for small claims they are usually to low to make it worth it . Call your State Registration board and ask for help but dont hold your breath there either. This is one of the problems with the homeowner /contractor relationship. All the safeguards for the Homeowner and nothing tangable to fight it on our end except expensive laywers. There are probably a whole pile of websites about homeowner rights and actions to take against contractors out there. Good luck finding one in your favor. I have never tried it but a collection agency, may be an avenue to explore. Usually people will act if there credit comes into play. I would try to find common ground before any of this. If all else fails halloween is comin and there is one every year for the next 5000 years.


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## apehangeralfy

You go into a restaurant and order a meal and then when it comes time to pay you walk out with paying, you will go to jail.

It is the same thing not paying for a job when the bill is due... we should be able to just call the police and have the HO arrested... I don't know if it would actually work or not, probably not but I am curious...


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## charlesmd

If a person defaults on a loan, they get harrassed constantly by creditors and have their credit screwed up. Why cant a contractor do the same to a homeowner if all the paperwork is in order and everything is legal?


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## AaronJ

John, Yes it varies from state to state. Did you have a contract drawn up for the work you did? If so depending on the amount I would proceeded with small claims court, every state is different on how much you’re allowed to sue in small claims court. Also I would put a mechanic lean against the home owner’s property until full payment has been received. With the outstanding balance you might even start adding interest on the money that you’re owed. But you have to continue to send an invoice each month showing the interest that is accumulating with the final payment.
I’m not a lawyer so do not quote me on this, Thanks and Good Luck! If you need help on researching anything just give me a call. Thanks


AC PROFESSIONAL SERVICES
"Structuring for Success"
Office 951-392-0834
Fax 951-927-9392


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## A W Smith

*put your location in your sig or profile damn it*

what state are you in? or do we have to quote 50 different laws protecting contractors from theft of services?


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## lacKailey

interesting post, thanks for sharing such a valuable information


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## Winchester

So what if he doesn't want to pay right away, think of all the interest he's going to owe you when he actually does pay :laughing:

You do have interest charges in your contract right? :thumbup:


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## JimHo

$5k may be too much for small claims court to look at.

Your best bet may be to start documenting conversations you have with the customer with time and date. The more detail you write down, the better. A witness helps. Also, you might want to mail the customer a separate contract for the stone, and include language like; "As per our conversation, the remaining balance from contract "A" will be due and payable upon delivery of the stone." Again this will just add documentation that the guy actually agrees that he owes you the money.


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## RPS

This has happened to us a number of times. A couple of quick tips we've learned that might help. #1, Do EVERYTHING in writing and take progress picture on every job. Without a paper trail of what has happened, it just turns into "he said - she said" situation. #2, Not knowing what state you're in, you normally have a small window of time to exercise your lien rights, so don't wait too long. #3, Inform the homeowner of your intent to lien in writing, you can find a number of template on-line. #4, If you place a lien on the property, which you can do by yourself, enforcing the lien will require a lawyer. That could get expensive. #5, Every state is different, but in most you can file a claim in small claims court if it's under $10K. You don't need a lawyer for small claims, but if you don't have good documentation to back up your story, you most likely won't get a judgement in your favor. However, just the act of being servered with papers by a process server or County Sheriff at home is usually enough to get their immediate attention and let them know you mean business! Good luck, I hope that helps.


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## wheeler

small claims court will take the action but its decision is final, there is no appeal. more generally lawyers don't pay for themselves on claims beneath $50k.

file the mechanics lien within state statue assuming you have a building permit and are a licensed home improvement contractor per state regs. filing is typically 30-days from "completion" of the work. fee is maybe $600 and another $600 / year to keep it open. you don't need a lawyer and all a lawyer will do is get another lawyer involved.

lesson's learned going forward, reference check you clients. don't cast your pearls to the swine. be extra cautious with the wealthy, most of them didn't get there playing fairly.


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## Anti-wingnut

wheeler said:


> small claims court will take the action but its decision is final, there is no appeal.


 
?????!!!!!!!!!!!!!

I thought that in the United States, all legal decisions were open to appeal *for cause*, all the way to the Supreme Court.


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## thom

Anti-wingnut said:


> ?????!!!!!!!!!!!!!
> 
> I thought that in the United States, all legal decisions were open to appeal *for cause*, all the way to the Supreme Court.


 
Generally, one accepts up front that a small claims court case cannot be appealed because it is not a court of record. That means, the proceedings are not recorded, just the result. 

Some states will make it optional but the party wanting the record must pay the costs of the court reporter.


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