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Homeowners Getting Stuck With Contractor Bills?

Posted on February 25th, 2009 2:57pm by Candy Evans
Filed under Changing market trends in Real Estate, Dallas home builders, Title Company news, home builders

Dream house turned nightmare. This story ran on WFAA-TV a few weeks ago, very dramatic: a physician says the builder didn’t pay his sub contractors on her $1.3 million Frisco dream house, so now they are knocking on her door, looking for payment. I have two words: Title Insurance. I may be wrong, but isn’t that why we buy title policies and aren’t they supposed to cover this kind of stuff? Wonder why the reporter didn’t ask more questions.

3 Comments to “Homeowners Getting Stuck With Contractor Bills?”

BF @ February 25th, 2009 at 9:47 pm

You are right on, Candy. Another reason to insist on getting title insurance from a company that knows what they are doing. WFAA should have asked about that.
Baseball Mike @ February 26th, 2009 at 8:48 pm

Are you sure about the purpose of title insurance? Is it the insurance at fault, or the actual due diligence performed by the closing attorney and/or title company itself?
slotz @ June 18th, 2009 at 11:49 pm

Shame on the owner for not getting lien wavers from all the subs and the general contractor, stating that all subs and suppliers have been paid up to that billing cycle.
If the general contractor had his subs sign wavers, collected from the owner, and did not pay the subs, the GC has committed fraud. But the subs cannot file any claims against the owner. They waved that right.
Oldest trick in the book by general contractors.