I agreed to perform an ALTA on a local property owned by a company a few states away. It was a decent amout of work, about 10k.
I have e-mails from the head honcho promsing to pay within 14 days, it has now been 45 days.
I e-mailed him a few times along the way and he told me that accounting had the invoice and instructions to pay.
I called the accounting dept today and they tell me that they have never recieved the invoice nor instructions to pay.
Hancho is not returning calls, e-mails, nor text messages. he was always "Johnny on the spot" when he was there with his hand out.
What to do? Any good advice?
What is the balance due?
10k
Is a Mechanic's Lien possible in your state?
My father always used to operate on a hand shake. Probably 10 years ago he had to start getting advanced payment. This was due to being burned one too many times.
I would suggest trying to speak to someone at the company one last time, perhaps the guy is on vacation or has family issues? If that did not work, I would have an attorney draft up a stern letter.
I would send a certified/registered letter demanding certified funds within 10 calendar days.
Can a lien be filed? What is the time frame?
I believe 10k is too much for small claims court...
All else fails, send "Guido"...
I can explain it to you, but I can't understand it for you...
Cliff
Yes it is available in the state where I am located and the propery is located, however, I am not sure about the state where the client is located.
Any insight as to the process is certainly appreciated.
Cliff
Yes it is available in the state where I am located and the propery is located, however, I am not sure about the state where the client is located.
Any insight as to the process is certainly appreciated.
I don’t see why the laws in the client’s home state would matter.
I would have your attorney send a certified letter, with a copy of the invoice, stating that he has 30 days to pay, after which a lawsuit will be filed. I have had to do this three times in ten years. Always got my money and only made it to court once.
Something about a letter from your attorney really gets their attention.
Cliff
If some dude that lived on an island where there weren't any laws against murder moved into town and started killing everyone, do you think that he couldn't be charged?
Check the Lien laws in your state- you may only have xx number of days from the last date of performing work on the property to file the lien.
Mechanic's Lien
A Mechanic's Lien encumbers the real property in the jurisdiction where it is located, regardless of where the owner resides.
The politely-worded inference of such a threat is commonly all that is required to obtain payment since such an encumberance on a title prevents it being used as (future) collateral muchless capable of being sold.
Cliff
Ummm......although murder is an extreme example, if there's not a law against something, and you do it, what law could you be charged with breaking?
So, technically, the answer is no, you wouldn't be charged with anything.
To the topic at hand, the lien goes with the property, not the owner, so it doesn't matter what state he or she lives in.
A lien does nothing to help you collect, until the owner tries to sell.
Mechanic's Lien
Since the survey was an ALTA, it is presumably for either a sale or refinance. A lien would be a major inconvenience for this client at this time. Move fast and get it done before the closing.
Don't pussy foot around with a letter
Normally, you might send out 30 and even 60 day reminders.
If you've performed an ALTA, that means that a sale or finance is happening NOW on this property. Once the sale closes, you will have a much more difficult time collecting.
Send a letter of intent to lien and then get the lien going. CC the letter to the title company and lender involved. That may be all you need.
I wonder if you could "retract" your survey (by registered mail) from the entities it was certified to? Could throw a HUGE wrench into whatever your client has going on, and thus get you paid. When you start holding up folks $$, you tend to get attention, good or bad.
file a dang lien.
I wouldn't recommend any form of "retraction." As soon as you do, they don't owe the money. The breach of contract now falls on you for non-delivery, not them for non-payment.
I definitely side with filing a mechanics lien. Make sure you follow the statutory process, though. Usually a letter to the client (informing them of your need to file the lien) is enough to trigger the payment. Set the time for response; upon failure to pay, file the lien. It's good business.
JBS
You people kill me. The answer to this problem is simple if handled correctly from the beginning. A contract for an ALTA, or any other surveying commission for that matter, should clearly state that the fee is due at the time of delivery of the product. Period. No check, no completed product delivered. Are you that hard up for work that you have to finance your clients' payments? If so, you probably should get out of the profession. Surveyors have done this crap too long. "Oh, yeah, here is your $xxx(x) closing plat. Heck yeah, just send the check within 30 days, or when the deal closes, or when you get paid, or when you feel like it." Sheesh...
I'm not saying I've never carried fees before in my career, but I haven't done it in a long while now. Works for me. If the client wants to do business with me they do it on my terms. End of story.
Liens only give temporary relief
There is a misconception that once a lien is filed or recorded against a property, it remains there indefinitely, similar to a deed or mortgage. This is not the case. Mechanic's Liens have a definite time limitation generally less than a year almost everywhere.
After you file the lien you must immediately initiate civil suit and win your case. A lien is meant to only give you the time to file suit and prevent sale of the property during the statutory time period. In Maine I believe it is 120 days, but I am not 100 percent sure.