Contractor help paid cash now screwed
Recently purchased a house and needed basement done. Contractor says we owe 6k in addition to the 26k we already paid with cashiers checks for installing a door where an arch was, fixing a shower, fixing a bathtub, wiring a hot tub. I realize it is arguable the market rate for these things and quite possible that the work is worth 6k (which is more than I would have wanted to pay) We paid the original 26k to have some framing, plumbing, electrical work done, and again it wasn't exactly clear what were paying for. Yes I already know we are dumbasses you don't have to tell me again. What I want to know is if the contractor puts a lien on the property if he was crooked could he say we didn't pay the 26k that we paid with cashiers checks plus the 6k? Now if he does put a lien what recourse do we have being that we don't have any written contracts? If he isn't licensed and didn't pull permits is there any way we can retaliate by reporting him to the city? Also he bought some of the materials under his own name, so if we decide to cut him off (which I'd like to do) he could always say "well these are mine" and say we stole them is that correct? Please advise. Thanks.
Don't waste your time on this board. Hire an attorney and put a stop to this quickly.
Thanks for your input.
Hopefully you contacted an attorney per the last comment. And since you already did I'll just throw some commentary answers out there based on Michigan law and my Licensed Builder knowledge.
1) What I want to know is if the contractor puts a lien on the property if he was crooked could he say we didn't pay the 26k that we paid with cashiers checks plus the 6k? - Probably not. Crooked implying unlicensed? You need a contractors license to file a lien. Cashiers checks can be traced back to the contractor, for a fee of course.
2) Now if he does put a lien what recourse do we have being that we don't have any written contracts? - In Michigan you need to have a written contract with your licence number to be a valid contract. He would need to prove a contract with preponderance of evidence. (He has no chance but its gonna cost you time and money if he can get this far.)
3) If he isn't licensed and didn't pull permits is there any way we can retaliate by reporting him to the city? Yes and no. Yeah turn him in! I'm down for that, less competition for jobs. First offence contracting without a license is a $5,000 fine in these parts. Jail time if your get caught more than once. Your still on the hook for what you gave him because you could sue but lets be realistic, you have no way to collect. Hes probably deadbeat enough to never have a W2 job or anything else you can garnish. Oh and since he didn't sign off as the contractor on a permit you gonna have to pay to remove his in progress works and possibly fines associated which aren't terrible. I see many of them are about double what the permit would have cost.
4) Also he bought some of the materials under his own name, so if we decide to cut him off (which I'd like to do) he could always say "well these are mine" and say we stole them is that correct? - No. He'd have to provide receipts which he probably didn't keep. He also willingly left them in your possession which would make for a civil case not criminal. He would have to take you to civil court to recover the materials. When he tells the judge he doesn't have a licence he will show he has no legal recourse under the law. Case dismissed. But you lost time and money defending nothing essentially, again.
Always hire a licensed contractor. ALWAYS. It may cost double but your paying for more than the same nail going into the same board.
This is not legal advice. Just commentary for entertainment purposes only.