Legal Question in Construction Law in California
Contract & warranties
We are a general--name removed--who has completed work at a residence. During the job, a sub--name removed--s employee threatened to file a lien for work performed. Upon hearing this, we obtained a full release and provided a copy to the homeowner. The homeowner was refinancing the home at the time and deducted the fee for title search from our contract amount despite having a lien release. We disagree that we owe for the title search fee and still show an outstanding balance for his job in our records. Three months later, there is tile grout that is cracking and the homeowner insists we repair it under warranty. Since the homeowner did not pay the full contract amount, does the contract become void? Does he have a right to pass on the cost for a title search despite being provided with the lien release? Also, are we obligated to any warranty clauses in contract even if we have not received full payment?
2 Answers from Attorneys
Re: Contract & warranties
I would think he would have had to pay for a title search anyway if he was refinancing, so I think your position there is correct. On the warranty, failure to pay the full contract price might have been a defense to finishing the job, but once finished, you would have a right to payment of the remaining contract price, but there could still be warranty obligation unless your contract is clear that the warranty does not exist absent full payment by x.
Keep in mind, however, that under calif. contractors licensing board regulations, all licensed builders impliedly warrant "workmanlike" construction. Payment issues won't play in much there, so, if its so bad that its "unworkmanlike" you probably ought to offer to go in there and fix it unless you want to risk licensing problems.
You could also just honor your warranty with offset. In other words, tell hiim you don't want to deal with him any more, but get an estimate for repair, and you'll pay a reasonable estimate, less the remaining contract price.
You could even try saying we'll honor the warranty when you pay the remaining price, if the contract gives you enough cover.
If you would like to send me a copy of your contract to review, e-mail me at [email protected].
Re: Contract & warranties
Warranty likely covers despite partial lack of payment. If you do not respond on warranty, he may sue you and the court would not excuse your lack of response. Next, I see no right for him to deduct title costs from what he owed you, so go to small claims court if $5,000.00 or less or file other suit if more. Call if you wish to discuss. 800-685-6950
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
