Legal Question in Construction Law in Florida

Foreclosure on a Construction Project

The contractor who also owned the land received 21,500 earnest money to build us a home. In addition we paid the architectural expenses, security fences, misc. adding to another 11,000.00. Just after the framing was done the contractor told us we could buy the construction project without our earnest money or he was going to let the bank foreclosure. The debt to the bank & the liens on the property were not substantiated by receipts - the builder would not supply. How many times can a ''contractor'' do this foreclosure game? He has done this with the same bank five different times.


Asked on 2/07/02, 8:09 am

1 Answer from Attorneys
Frank Reilly Reilly Roche LLP

Re: Foreclosure on a Construction Project

Because I do not know all of the facts regarding your case, I can only offer some general suggestions. Under the circumstances, I recommmend that you speak with an attorney immediately. There are some very important time frames that may be applicable to your case. Please feel free to call me at (954) 229-1008. I'll be happy to speak with you at no charge.

A contractor is not permitted to take this kind of action. He has an obligation to live up to the terms of your agreement with him. Furthermore, the bank may also have some liability. Whatever you do, do not make any further payments to anyone until you speak with a lawyer first. It is very important that you protect the property from additional liens. Because Florida's lien laws can be complicated, I do not recommend that you try to deal with the contractor, the bank or any potential lienors on your own. If you mistakenly fail to follow the law, you may unfortunately be forced to pay twice for work already performed, regardless of whether you have already paid the contractor.

It sounds like you may have a good case against both the contractor and the bank. I wish I could offer you some "self - help" suggestions, but this is one of those cases where you need to speak with an attorney as soon as possible. Best of luck to you.

Sincerely,

FRANK V. REILLY, P.A.

Frank Reilly

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Answered on 2/07/02, 10:55 am


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