How To Resolve W/o Suing?
I wish I could show the level of frustration I feel at this moment. I purchased my 2nd rehab in January. The house was a dozy (sp). Fire damage; roof had whole in it for 10 years (just imagine the foundation issues). I picked up the house for 10600; Repairs 46000; ARV 90000.
The city approved a 90 day permit to rehab. I wanted to get all the funding before we started rehabing. Instead of hard money lender, I got a cash out refinance on our first rehab (52000.00). The contractor started gutting the house out, and low and behold, the house began to lean. They took no special precautions as far as I can tell. A tiny portion of the roof was touching the neighbour's house, and the chimney was at an angle. When I saw the house I freaked out.
I asked the contractor if they would brace the house, they said they would see what they could do.
fastforward to 1 week.
I get a call from from city codes compliance, they tell me they are going to tear down the house (its unsafe). They will also place a lien on the property for the cost of demolition. I can't rebuild on it because the lot is too small to build on (25x100). Unless I get a 15 foot wide house I cannot get a special exception from the city.
I since talked with other contractors and city code compliance, they are asking "why the contractor had not braced the house. The city was working with me in getting this house fixed, but because the contractor failed to secure the house, I will lose the house and I am left with a worthless lot.
I am currently into the property 20000 with nothing to show for it. I feel that the contractor was negligent.
Any advice in this situation is welcome.
iwant2bindependent
Wow, it sounds like you found the winning couple contractors I've had. A couple real winners. I have to go to court this next Monday with one of them. He walked off the job without completing his countract, almost doubled his price, and filed a mechanics lien against the property. I had paid him almost all the amount he had bid for the work he did do. I am going after his license and bond which fortunately is sufficient to allow me to recover. If there is any justice I ought to prevail, I have pictures (lots of them) I have a private building inspectors report of the work he did is inferior as well as a couple estimates from other contractors as to the quality of the repairs he did do, and that it all has to be removed and done over from scratch. Plus their estimates to do so.
I am not an attorney so this is just my opinion, but in your case your contractor ought to be liable (if there is justice in court) as well.
I do not know if you have a written contract, what it says, or your position. Or the building department/inspectors in your area.( Ours leave much to be desired it appears for the consumer,)
You well may have to take him to court to recover. I do not know, but here is the best to you.
Hate to tell you this but you're going to need a lawyer. Minimally you need one to stop the city's plan to demolish assuming that you really cannot rebuild on the lot. Even if its leaning pretty bad a smart contractor will figure out a way to straighten it out and brace it. Minimally, though, you want to keep it tied up in court for a while so that the city can decide you are going to be a lot of trouble and give you an exemption to rebuild. How about this arguement: The city had a obligation, because you used a licensed contractor and pulled a permit, to make sure that the work was done right. Therfore if the house has to be demolished and cannot be rebuilt the city owes you for the lost value of the house/lot. Get a good lawyer and a judge who's not completly in the pocket of the city and you've got a pretty good chance that the city will "settle" by letting you knock this house down and re-build another the same size in it place.
Suing the contractor is a different matter, you may well be throwing good money after bad. A guy who is this incompetent probably hasn't got any money to collect.