Attention ALL Florida Fix & Flippers ...

The roofer says it was book-keeping error, but he has a judgement against
him for not paying a supplier with a previous company he owned. He is using another roofing contractor to purchase materials & he is doing the jobs because the contractor that is purchasing the materials has a delinquent license.
Like it's not hard enough to make money without all this additional grief.

Thanks Gary for the warning. Like you said, as if investing in FL wasn't hard enough, now this too!!!

Andy Sager,
DG's AndyS
CFIC member

I was reading about this, and it says that the NOC 'protects' the owner's title to the property?? (read below) Ha!
In CA we have a "Notice of Completion" to close the loop; it basically states that the work has been completed and paid for, etc. and limits the time a contractor can sue property owner... I'm attaching a link to an example...

http://www.yolorecorder.org/forms/files/AL1136911481/Notice%20of%20Compl...

"What is a Notice of Commencement?

If your contract exceeds $2,500.00, a Notice of Commencement must be filed by the homeowner or contractor.

In accordance with Section 713.13 (1) (h) of the Florida Statutes, a “Notice of Commencement” must be filed with the Clerk of the Court (County Records Division) prior to commencement of construction of a project, and a certified copy or affidavit attesting to the recording of the Notice of Commencement, must be posted at the jobsite. This notice contains detailed information about the project such as property owner, financial institution, jobsite address, contractor, etc., and protects the property owner’s title to the property.

Development Services at city hall will provide this form to permit applicants upon request.
•Your failure to record a Notice of Commencement may result in your paying twice for improvements to your property. If you intend to obtain financing, consult with your lender or an attorney before recording your Notice of Commencement. A recorded copy of the Notice of Commencement must be posted on the job-site. "

That's true it was designed to protect the homeowner but in my opinion backfired. We had a neighbor that upon completion of the construction of their
home, went to closing to find out there was an additional lien of $ 30,000 that was owed to the sub-contractors/suppliers. They had to satisfy (pay) the 30K in order to close on their new dream house.
When I owned the heating oil company in N.J. if we installed a new heating system in a customers house & failed to pay our supplier, the supplier's recourse was to sue us & get a judgement. They had no recourse against the retail buyer. The would be like buying a Sony 60" TV from Walmart, paying for it in full & then having to pay Sony all over again because Walmart failed to pay them ... ridiculous.

The good thing is that this won't effective you doing wholesale deals.
While it is good to be aware of the contractors background while doing rehabs.

I guess it's just another (big) thing that rehabbers have to check too; how can investors make sure contractors have paid suppliers in full? how would an investor even know who the suppliers are?

what a headache!

I love the Wal-Mart analogy. Just another example of Government protecting "innocent victims" from some nasty capitalist!! Backfires as usual!!
A good way to protect yourself is to purchase the materials yourself. This can be a pain but can be done.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Thanks Michael, we think a lot alike, we should team up here & kick some Fl. butt! ... After 4 hours of phone calls I got everything resolved & even manage to keep my buyer happy since he's looking for more property. That 4 hrs could have been devoted to our latest rehab, at least the time would have been more constructive.

I have discovered that Seawalls & Docks are NON-INSURED in Florida and are a complete out of pocket expense incurred by owner / assigned.

Thanks for the heads up!