My question involves a consumer law issue in the State of: New Mexico
Hello.
Our General Contractor (GM) filed a lien on our new house with a monthly rate of 18%. :grumpy:
Here are the facts:
- By our Contract, the house should be finished in 6 months. But we were able to move in unfinished house 4 weeks after 6 months from the start of the construction.
- By the Contract, we need to pay in full when the Certificate of Occupancy (CO) is issued. However, we asked the City inspector to issue our CO before the house was finished, because we didn't want to start on another construction loan after 6 months.
- Since the CO was issued, our GM requested the full payment. However since the house wasn't complete yet, we decided to keep about 14K, by our accounting, until he finishes the house.
- He didn't finish the house and he didn't talk to us regarding the total amount for the last payment. Instead, he announced one day that he put a lien on our house in the amount of 34K.
- Only after that, he presented to us his summary of items, which came up to 34K. Three items in the amount of 10K were simply a mistake in his accounting. He also made up some items, for which the change order was never approved and signed.
- We estimated that we would need to spend about 7K in order to finish the house. It means that we actually owe to our GM about 7K, by our accounting.
Our attorney said that a legal case with our builder will be expensive for us and this is probably what our PM wants. Also we may never be able to collect from him if our legal case will cost us more than what we owe to him.
Our attorney advised us to simply sit on this Lien, since we don't plan to move out of this house soon. :confused:
What is your opinion?
We are curious about 18% of monthly rate on this Lien. Can this be even allowed for the rate to be that high?
A lien damages the credit score, but we don't care about this.
Is it possible that our PM will plan on renewing our lien every day for the rest of his life?
Many thanks for your time and sharing your knowledge with me! :)
Hello.
Our General Contractor (GM) filed a lien on our new house with a monthly rate of 18%. :grumpy:
Here are the facts:
- By our Contract, the house should be finished in 6 months. But we were able to move in unfinished house 4 weeks after 6 months from the start of the construction.
- By the Contract, we need to pay in full when the Certificate of Occupancy (CO) is issued. However, we asked the City inspector to issue our CO before the house was finished, because we didn't want to start on another construction loan after 6 months.
- Since the CO was issued, our GM requested the full payment. However since the house wasn't complete yet, we decided to keep about 14K, by our accounting, until he finishes the house.
- He didn't finish the house and he didn't talk to us regarding the total amount for the last payment. Instead, he announced one day that he put a lien on our house in the amount of 34K.
- Only after that, he presented to us his summary of items, which came up to 34K. Three items in the amount of 10K were simply a mistake in his accounting. He also made up some items, for which the change order was never approved and signed.
- We estimated that we would need to spend about 7K in order to finish the house. It means that we actually owe to our GM about 7K, by our accounting.
Our attorney said that a legal case with our builder will be expensive for us and this is probably what our PM wants. Also we may never be able to collect from him if our legal case will cost us more than what we owe to him.
Our attorney advised us to simply sit on this Lien, since we don't plan to move out of this house soon. :confused:
What is your opinion?
We are curious about 18% of monthly rate on this Lien. Can this be even allowed for the rate to be that high?
A lien damages the credit score, but we don't care about this.
Is it possible that our PM will plan on renewing our lien every day for the rest of his life?
Many thanks for your time and sharing your knowledge with me! :)
Payment: Lien Filed by General Contractor on Our New House
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