The renter made changes to MY home with the assumption that he was going to purchase. After being unable to aquire a mortage after 5 years, and at this point on a month-to-month assumed rental agreement(nothing in writing for 3 years), the renter told us he was moving out. Per our lawyer, an eviction notice was served. Exactly one day before the closing on my home, which I could only sell for what I owed to the bank because the renter had incurred an unbelievable amout of damage to the property, a judgement was placed on my home for "improvements" he made while living there. Am I responsible to pay him anything? Also, the closing had already taken place-papers signed and checks drawn and sent-prior to the knowledge of this lein. 2 days later the lending bank has put a stop payment on the checks from the closing, because this lein is dated 1 day prior to closing. By the way it wasn't signed by the renter, just submitted by his lawyer. Can this be legal? What rights do I have?
2007-08-05 04:48:04 · 6 answers · asked by jewelsofswfla 1 in Business & Finance ➔ Renting & Real Estate
Yes this lein is from the actual renter. The original agreement obligations were not fulfilled in the first year, we extended them for an additional year with still no mortgage aquired. After that point no more agreements were put in writing, biggest mistake here is that it is a family member whom I rented to. This person has personal issues which I cannot elaborate on in respect to him. I can say that a large quantity of drugs were found in my home when I went there to clean up the property, which I just cleaned up and sent to the dump. I live out of state, and had 24 hours to clean the property and get it ready for sale. A real estate broker told me that it would take 20,000-40,000 to bring the property up to low fair market value because of the condition of the property. This lein is for aproximately 20,000.00. Should I counter-sue?
2007-08-05 06:05:40 · update #1
It sounds like the outcome will be contingent upon the language used in the original lease to buy agreement. If he breached this agreement or didn't perform (find a mortgage) under the terms of the agreement - were his rights terminated by the language in the agreement?
It sounds like they are hoping to inconvenience you into submission to his anger.
If you are only breaking even, then remember, lawyers don't get paid unless there is a fight [dispute] that two parties cannot work out amongst themselves, and you started it.
His feelings are obviously wounded, because you had previously treated him differently [seemed disinterested in the legal stuff, then you went and changed the game and got all technical and stuff. ]
-- and now he's attempting to feel better, after all how dare you only be interested in the financial respects of your property and not his emotional state of mind and make a profit from his labor.
Best wishes for an amicable resolution to your situation.
2007-08-05 05:08:33 · answer #1 · answered by LadyB!™ 4 · 0⤊ 1⤋
Chances are that this lien will be tossed out by a court, unless your contractual agreement indicated that the renter would be reimbursed for any improvements made during his stay at the property, if he chose to not buy.
A lender will doubtless refuse to close on a property with a lien on it, as is proper. However, your attorney should be able to get this one handled and dismissed as a faulty lien.
I gather, from what you have posted, that this former renter is the person who placed the lien, in an attempt to recover expenses on his part for unauthorized improvement. If the lien in question is from someone other than the renter, then you have a different situation.
2007-08-05 05:21:33 · answer #2 · answered by acermill 7 · 1⤊ 0⤋
Most states that I know allow the construction people to have an automatic lien on a property that they worked on, however the issue of actual legal ownership of the property as it affects the legal rights of such liens might be the issue that you need to discuss with your legal counsel. The renter only had tenancy rights and not legal rights to enter into a contract with a construction company that would give rise to a mechanic's lien on your property, without an express consent agreement from you to the contractor. For sure you need legal counsel on this one. If you can not afford legal counsel on this issue you might want to contact this link
Free legal aid search for all states: http://www.lawhelp.org/
Best of luck on your negotiations
2007-08-05 04:56:34 · answer #3 · answered by newmexicorealestateforms 6 · 1⤊ 0⤋
In my state, michigan, a contractor can put a lien on a house he did work on, if he did not get paid
He should never have made improvements without your approval.
Your only recourse is to pay the lien, and then try to sue the renter to recover your costs.
you need to see a lawyer ASAP
2007-08-05 04:56:04 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You are not responsible for work on your house that you didn't order or approve. However, the lien is in place and you will need an attorney to sort this out.
The contractor will argue that the renter was your "agent" and the renter would in fact be your agent if you let him, meaning, he had ordered work in the past, you knew it, and you did not stop him or notify him that he was not allowed to act on your behalf.
2007-08-05 05:02:47 · answer #5 · answered by Dan 3 · 1⤊ 0⤋
what did your original agreement with him say?
2007-08-05 04:51:58 · answer #6 · answered by Anonymous · 0⤊ 0⤋