I have hired a wrong contractor that I found throughout your website TrustedPros. I paid him deposit for amount of $3200 for the job I need to do at my home. He gave the job to another contractor that he has supposed to pay him for doing drywall at my home who from his end sent people to do drywall job and they did the job. The subcontractor now did not get the money that he is supposed to get from my contractor that I hired and is asking us now to pay him for the job his people did. My contractor does not respond to our calls as he blocked us, the subcontractor sends us messages asking to pay him telling otherwise he is going to put lean at our home even we did not hire him and have not singed any contract with him.
I need your advice, what do I need to do? Can the subcontractor put a lean at our home as what he says? Please advice!
Ha! This sounds fairly straight forward.
If the Contractor is the one you have a written contract with or even just his name on a written estimate. This too is considered a contract and that is who it is with ( NOT the Sub-Contractor ) his fight to get his money is with the Contractor. He cannot put a lean on your home because you did not hire him. Legally all you can do is advise the Sub-Contractor to send a registered letter to the contractor along with his Invoice and a certain % penalty if not paid by a certain date.
Please do your research before commenting, not to get owner in additional mess.
You put lien on a property where work was performed, doesn't matter who hired you, owner or subcontractor. Otherwise any of your friends could play a role of a house owner to sign contract with me to avoid paying for work.
I did it myself many times without a single question asked at land registry office. I perform $60k custom home wiring for general contractor who hired me, liend property where work was performed and got paid straight by the owners on numerous occasions.
Here's a part from construction lien act:
Contractors and suppliers of work, services and supplies to real property in Ontario have been granted special protections by the Construction Lien Act (the "CLA"). The CLA sets out the rules as to who has a lien (security against the property) and the process by which lien claimants can enforce their various rights.
Section 14(1) of the CLA provides that, "a person who supplies services or materials to an improvement for an owner, contractor or subcontractor, has a lien upon the interest of the owner in the premises improved for the price of those services or materials." The lien creates an interest in the land in favour of those who supply materials or services, thereby creating security. This operates to prevent the owner from receiving improved land without making payment for the improvement. This is especially important to subcontractors who have no direct contract with the owner (and therefore no right to bring an action for payment under a contract).
Subcontractors can file liens against homeowners when they fail to receive payment for their services. Although general contractors who hire subcontractors are typically responsible for paying them, subcontractors can demand final payment from homeowners. In other words, a homeowner is generally responsible for ensuring proper payment by a general contractor to his subcontractors. When a subcontractor files a lien, the lien creates an encumbrance on the owner's property for work that was finished but unpaid.
Sorry this kind of thing goes on it the market place. Its really heartening to hear. Most Contractors will ask for a Deposit amount 30%-50% if they have to purchase materials to start. Checking references, at least 3 is recommended. It's also a written contract? I assume, with the 1st contractor. It seems you have no knowledge of the 2nd.. they can put a lien on your house; it's costly for them : and you to have it removed. I would suggest a lawyer might be able to give you a 'FREE' consultation to advise you where to go from here. Once again, sorry this happened to you.
What do you have for proof of meeting the contractor?
2-receipt for the down payment?
Was the deposit within 10% of the full cost?
Overall my understanding from reading your post is that you and the sub-contractor got scammed by the Contractor.
It really does depend if you signed a contract and what the contract stated.
Putting the contract agreement aside (if there was one). The sub-contractor should contact the contractor and not you. They can go to you and try to convince you to pay but that is a incorrect way to go about it.
What should you do now?
Remain firm with the sub-contractor. They should know better.
Contact an authority if you wish to proceed to resolve the issue but it will not be an easy process.
Again, its all about the contract and the way it went down to begin with.
Always research the potential contractor by asking questions and proof of.
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