Posted by chris on June 05, 2000 at 02:40:26:
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L/O’s question? - Posted by Alex
Posted by Alex on June 04, 2000 at 09:37:05:
My question is if a tentant/buyer at sometime in the lease. Makes repairs or adds improvements to the place and seeks financing to do these repairs or improvement. Naturally with my approval, would it or could it be a problem if they defaulted? Having the lender for the improvements hold a lean on the property? I’m sure there is away around this. I would like to hear someone comments for my learning curve. Thank you.
Re: L/O’s question? - Posted by Jim LaVerdi
Posted by Jim LaVerdi on June 04, 2000 at 12:16:51:
Alex,
The lender can’t hold a lien on the property because the Tenant /Buyer doesn’t have the title to the property, you do!. Therefore any loan that the Tenant/ Buyer obtains and that loan should require some type of collateral it would have to be perhaps his vehicle, or credit card or boat etc. It can not be your house because you hold title not him. If anything it would do you good if he defaulted, you get the repair work done courtesy of Mr Tenant/ Buyer. It would be his problem not yours!
Jim LaVerdi
Re: L/O’s question? - Posted by Charles Kovacs
Posted by Charles Kovacs on June 04, 2000 at 14:52:28:
Hi Jim
I understand if the t/b tries to get a loan to do the improvements he can’t use the house as collateral because he doesn’t own it. However if he just contracts with a contractor for work and then doesn’t pay the contractor the contractor can file a mechanics lean against the property.
For instance in FL if you contract for a new home and the contractor does not pay the subcontractors they can file a lien against the property and you have to pay the subcontractors to remove the lien even if you have already paid the general contractor. I have seen people pay twice for the same house.
Charles
Re: L/O’s question? - Posted by chris
Posted by chris on June 04, 2000 at 17:41:21:
Charlie-
If a renter or some other party not in the chain of title is contracting to have work done on YOUR property
without your permission the lien would have no attachment.
Chapter 713 of the Florida Statutes covers mechanics’ liens. I would recommend reading it.
http://www.leg.state.fl.us/citizen/documents/statutes/StatuteBrowser99/index.cfm?mode=Display_Index
-Chris
Re: L/O’s question? - Posted by Jim LaVerdi
Posted by Jim LaVerdi on June 04, 2000 at 16:25:16:
Thats the reason for the “Option Consideration” I would hope that you got enough up front cash to cover any of these kinds of situations. Same goes for damage that may have been caused by a tenant /buyer. In this case the work is already done and that should get you an even higher back end profit on your asking price!! (I am assuming that the Tenant/Buyer has decided not to exercise their option) Find another Tenant/ Buyer and do it all over again. You’ll get that money back in a heartbeat!
L/O’s are so cool
Jim LaVerdi
Re: L/O’s question? - Posted by Charles
Posted by Charles on June 04, 2000 at 22:11:47:
Chris
Chapter 713.11 defines it. Seems your right (thank goodness). Thanks.
Charles