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About Peter M. Elliott
Expertise
First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only.

Experience
Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

 
   

You are here:  Experts > Industry > Construction Industry > Construction Law > reale state scam, lien.. HELP

Construction Law - reale state scam, lien.. HELP


Expert: Peter M. Elliott - 5/14/2005

Question
Arizona in America.
Hello,
This is a doozie here...
Prior to acquiring my general contracting license I was approached by a man who told me I was 'made of gold' and blessed to meet him and his wife. They helped my family in rough times and gave us gifts, all the while knowing I was getting my license. Soon after the license was granted, he approached me with a 'deal' to build two houses which he would fund and I would build. All property was put into my name and he wanted cash when it was completed (we would split the profits). ***I later discovered that I cannot lein my own property.***  As the house #1(he backed out the funding on house #2) neared the rough in stage, he demanded I leave the state and never return and threatened to kill me and my family several times (I have recording and police help here).. NOW he has placed liens on the property and the projects have stopped due to his lawsuits against me, my business and the lender. The lender backed out and I cannot get new lenders due to the extravagant liens ((OVER $1 MILLION)). The only agreement on paper was for my personally borrowing funds from him to build these projects and that IF I ABANDON THE PROJECTS, he would own it all.
HELP.... any ideas short of a showdown in the street? BY THE WAY, he had his lawyer place the liens in her name.
THANKS.

Answer
Hi John,

I don't think that this question has much to do with construction law, rather with intimidation, which is outside my expertise.   Without sight of the specific documentation, my advice will be general in nature.

As far as the liens are concerned, you need to get them removed.  There are lots of web sites, both commercial and non-commercial, on the procedures for applying and removing liens, so you can get impartial advice on how to proceed and the possible reaction from the other party.  While the liens are in place, you are going nowhere.

I do not understand how the lender has backed out if you were required to borrow funds from him to build the projects.  You need proper legal advice on the written agreement between you and your lender; whether your lender is applying it correctly, especially the application of the liens and the definition of abandonment.  Do some research and see if he has applied the same pressure to others.

If all else fails, 'name and shame him' in the local media to prevent others having the same experience.  The press can be very effective in exposing unscrupulous operators.

I hope that you and your family survive.


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