HVAC services in NYC

[gerard2006]

Jurisdiction

New York

Folks

I have had a new system installed at home which isn't performing - just not heating the home as was claimed. The contractor has asked me to do a couple of things to fix it but they go against the design we agreed on and I am probably going to to to get it fully analyzed & fixed by another contractor. Currently, I paid 50% upon completion with 50% pending. I'm thinking of offering the contractor another 25% but will have to keep the remaining 25% to fix it with another party. But if it's not agreeable to him, I'm sure he'll file a mechanic's lien and have a few questions about this. I understand these are tough to answer without getting more specifics on the case but hoping somebody can provide a general response about what occurs in these situations. My hope is I can work out something with him

1) can mechanic's lien show up on credit report and affect future borrowing negatively. We already own our home and have always paid this and other bills on time but of course, we may want to finance cars, etc in the future
2) do mechanic's lien carry an interest charge
3) can mechanic's lien to any sort of foreclosure or will I simply have to deal with it when selling the home
4) can the contractor file a civil suit in court or their only option is mechanic's lien

Thanks

 

[army judge]

NY state is one of the exceptions when it comes to mechanic's liens expiring.
Legally, in NY state, one can renew a mechanic's lien.

Before you whip yourself into what I call "perpetual hypotheticalism and 'what iffing'", I suggest you initiate negotiations with the contractor in an attempt to thwart what appears to vex you, a mechanic's lien being slapped on your deed.

If negotiations don't go well, that is when you can enter the state of perpetual hypotheticals.

1) can mechanic's lien show up on credit report and affect future borrowing negatively. We already own our home and have always paid this and other bills on time but of course, we may want to finance cars, etc in the future

Can it show, sure, but it shouldn't show.
There are many reasons it could appear, but legally it shouldn't appear.

No, a mechanics lien will SHOULD not show up on your credit report.

Today judgments no longer show up on credit reports.

A lien should not appear because a lien is an ALLEGATION that has not been litigated and proven before a court of competent jurisdiction. In two words, "due process" would be denied if a lien appeared on your credit report. That is why the recent change was made by the credit bureaucracies.

3) can mechanic's lien to any sort of foreclosure or will I simply have to deal with it when selling the home

A lien alone can't cause foreclosure for the reasons outlined above.
A lien is an allegation.
A lien alone deprives you of your property without due process.
Even if the matter is litigated and an outcome is against you, courts are reluctant to dispossess homeowners because of debts alone.

I suggest you discuss this matter calmly with the contractor in an effort of reaching a compromise fair to all parties.

can the contractor file a civil suit in court or their only option is mechanic's lien

Of course, a lawsuit is always a possibility.

It is unproductive to speculate when there is a better use of your efforts, time, and skills.

Forget litigation for the present and use your people skills, communication abilities, and negotiations expertise to resolve this rapidly and equitably for all parties.

Be prepared to give to get.

As an old TV comedy show character on "Carter Country" used to say:

The character Mayor Burnside coined a minor catchphrase with his manic "Handle it, Roy, handle it!", used when delegating various details to Chief Mobey such as fixing a parking ticket.

 

[gerard2006]

I do appreciate your legal and practical advice. I will try my best. One last question - do liens typically carry interest?

 

[adjusterjack]

I have had a new system installed at home which isn't performing - just not heating the home as was claimed.

How so? What did you set the thermostat at? What is the temperature of the heat coming out of the registers? Have you checked that yet? If you haven't then your complaint is just perceptual with no basis in fact.

Buy yourself one of these:

Amazon.com : laser thermometer

You'll have it in a day.

Once you have a record of the output temperature in each room compared to the thermostat setting, you'll have something to talk about.

One last question - do liens typically carry interest?

No, not in themselves. Your contract with the contractor could specify that interest accrues if a balance remains unpaid after a certain date.

 

[army judge]

I do appreciate your legal and practical advice. I will try my best. One last question - do liens typically carry interest?

The answer isn't a simple YES or NO.

NY Lien Law Section 3 specifically authorizes: a lienor to lien for the amount unpaid for the labor and materials and for the interest due thereon.

The lienor must be careful if the contract documents did not allow the person/entity to charge interest or finance charges on past due amounts then the lienor cannot just make up an amount and include it in the lien.

If the contract allows interest to be accrued on unpaid debt or finance charges on past due amounts then the interest or finance charge is an entirely proper component of the mechanic's lien.

When inserting interest provisions in the contract documents entities MUST be careful not to run afoul of New York's tough usury laws.

Bottom line, I refer you to your contract and other documents.

The contract will speak to interest and fees on past due amounts, or it will be silent.

If the contract makes no mention of interest or fees, legally the contractor should't charge you.

 

[gerard2006]

The contract doesn't even talk about payment terms, deposits, etc

 

[army judge]

The contract doesn't even talk about payment terms, deposits, etc

Things MIGHT be looking better for you day by day.

Once those discussions ensue, you might have something to crow about, mate.

The contract will speak to interest and fees on past due amounts, or it will be silent.

If the contract makes no mention of interest or fees, legally the contractor can't charge you legally.

 

[zddoodah]

1. No.
2. No, but any debt can be subject to interest (if the contract is silent, then the state's legal rate of interest would apply).
3. Yes.
4. Yes.