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What would you do?

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Paul Plutae
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A client owns a commercial site, call him Tom. The site is being leased out to another, call him Ralph.

Tom gets cited by the city for being in non compliance for handicapped facilities. Tom retains an architect, surveyor and contractor to remedy the situation.

Tom signs a contract with the surveyor and pays a 50% retainier.

The surveyor finishes the contract and contacts Tom to arrange for payment of the balance and to hand over the signed maps. Tom says "Ralph is going to pay half of the cost". Tom also says that he cannot be onsite that day.

The surveyor goes back to the site for some extra monumentation that is not in contract because that is just how the surveyor does things.

While at the site, the surveyor speaks to Ralph and mentions the balance due.

Ralph appears concerned that he should be paying, but writes out a check for the balance due, the surveyor hands Ralph the maps.

What would you do with the check and what would you say to Ralph, if anything?


 
Posted : November 4, 2010 7:56 am
Moe Shetty
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wouldn't the surveyor be contracted only to tom? tom, therefore, can settle up any side deals with ralph later...


 
Posted : November 4, 2010 7:58 am
Paul Plutae
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What would you do? - Moe

> wouldn't the surveyor be contracted only to tom?

That is not in the picture..

The question is.. What would you do with the check and what would you say to Ralph, if anything?


 
Posted : November 4, 2010 8:00 am
carl-b-correll
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What would you do? - Moe

> > wouldn't the surveyor be contracted only to tom?
>
> That is not in the picture..
>
> The question is.. What would you do with the check and what would you say to Ralph, if anything?

I'd hold the check and arrange a meeting with both people if my "Spidey-sense" was tingling. Or you could deposit the check and still arrange the meeting taking a check in the same amount back with you. Obviously something doesn't seem kosher in LA-LA land...


 
Posted : November 4, 2010 8:04 am
Steve Gardner
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I would say "Thank you very much, Ralph. I'll let Tom know you have paid $X.00." Then I would deposit the check and send Tom the maps that he contracted me to prepare along with a statement showing the contract paid in full showing the two payments and from whom I received them on what date. Apparently Ralph wasn't concerned enough not to get out his checkbook.


 
Posted : November 4, 2010 8:07 am

Moe Shetty
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What would you do? - Moe

i'm with mr correll on this one. as a contractor, doesn't this apparent side deal reek to you?

hold the check and meet both parties.

if it gets ugly, continue to hold the check. can you put a mechanic's lien on said prop, in Cali, if necessary?


 
Posted : November 4, 2010 8:09 am
just-mapit
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What Steve said.


 
Posted : November 4, 2010 8:10 am
andy-j
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I would go to lunch.


 
Posted : November 4, 2010 8:13 am
Paul Plutae
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What would you do? - Steven

>Apparently Ralph wasn't concerned enough not to get out his checkbook.

Ralph is from another country and my impression was that he felt intimidated by Tom.


 
Posted : November 4, 2010 8:13 am
Paul Plutae
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What would you do? - Moe

> .. can you put a mechanic's lien on said prop, in Cali, if necessary?

Yes, but that will not be necessary.


 
Posted : November 4, 2010 8:32 am

jbstahl
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I'm also with Steve on this one... You've got the verbal from Tom that Ralph would pay half and you've got Ralph's check to confirm it. You've been paid in full for your contract. Indicate the payments from Ralph and Tom on the final statement with a "thank you" note. Submit the final copies of the survey to both Ralph and Tom.

JBS


 
Posted : November 4, 2010 8:39 am
Paul Plutae
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This is what I did.

I handed Ralph back his check and told him, on the QT, that as a lessee he is not obligated in any way to pay any amount to bring a site into compliance. I also told him that when his lease expires and he moves on, what will happen to all the money he paid for property that he does not own.

I'll get the balance from Tom.


 
Posted : November 4, 2010 8:44 am
DeletedUser
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Immediately take the check to the bank to determine sufficient funds were on hand to cover the amount.


 
Posted : November 4, 2010 8:49 am
snoop
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> This is what I did.
>
> I handed Ralph back his check and told him, on the QT, that as a lessee he is not obligated in any way to pay any amount to bring a site into compliance. I also told him that when his lease expires and he moves on, what will happen to all the money he paid for property that he does not own.
>
> I'll get the balance from Tom.

You are over thinking this one PP. You have no idea what the lease agreement says. You traded money in hand for a chance at being a hero to someone you don't know. Do your work, get your money and let other grown men handle their own business.


 
Posted : November 4, 2010 8:50 am
Paul Plutae
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What would you do? _ Snoop

You do it your way, I'll do it mine


 
Posted : November 4, 2010 8:53 am

DeletedUser
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What would you do? Not that

> This is what I did.
>
> I handed Ralph back his check and told him, on the QT, that as a lessee he is not obligated in any way to pay any amount to bring a site into compliance.

Well, I would not have done that. Do you really fully know or are aware of the contractual arrangements of the parties?
Have you read the lease? Maybe it has a clause for this specific issue on improvements.
Can't they both write off it as an expense? The owner as a capital improvement to his property and the lessee as a needed requirement to have a business license issued.

I would think that I was there to perform the survey and not stick my nose into arbitrating who pays what and when.
Maybe I am missing something here.


 
Posted : November 4, 2010 9:00 am
Kris Morgan
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First, there wouldn't be a question, because the moment that Tom said Ralph would pay the balance, I would have contacted Ralph to go over that with him. Then, when the check was presented, I would have no qualms about depositing it in the bank.


 
Posted : November 4, 2010 9:02 am
snoop
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What would you do? _ Snoop

> You do it your way, I'll do it mine

You ask dipchit. Don't ask the question and then get pissy when you get a response that doesn't agree with you. Are you just trolling for an argument this morning or what?


 
Posted : November 4, 2010 9:14 am
paul-in-pa
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Paul Plutae, Are You Lawyer ?

Tom could argue that you were paid in full and he owes you nothing. That you returned payment to Ralph is of your own volition.

Since you are not aware of the actual lease agreement you cannot be certain that Ralph is not in fact obligated to pay all or in part for compliance issues.

Leases are often required to pay for improvements that they must eventually walk away from. I have heard of leasees paying for improvements and then when the lease is up for renewall paying more because the value has increased due to the improvements they made. It is called contract law, not really in your line of work.

The entire cost of improvements could have been a pass through cost according to the lease, and Tom may have just paid the retainer since he was the one with the citation. Consider this, if the city shuts the site down, Tom still owns it but Ralph is out of business.

BTW, let us know if, who and when anyone pays you the balance.

Paul in PA


 
Posted : November 4, 2010 9:16 am
Paul Plutae
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What would you do? _ Snoop

> You ask dipchit. Don't ask the question and then get pissy when you get a response that doesn't agree with you. Are you just trolling for an argument this morning or what?

Of course I am Snoop, but just with you darlin!


 
Posted : November 4, 2010 9:17 am

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