Mechanic’s Liens Are Filed on Your Home
You may not have heard of “mechanic’s liens” but they can result in a huge nightmare for hom-eowners. A mechanic’s lien is a legal claim that can be filed against your home by anyone who supplies labor or materials to fix, repair or improve your home. The word “anyone” includes not only the contractor you hire but may also include any subcontractors or material suppliers that your contractor hires (who may be totally unknown to you). When you hire a contractor to install a new comfort system in your home, the last thing you expect is the “surprise” of a mechanic’s lien being filed in the public records against your own home. But that can easily happen in many states if the “contractor” you hire fails to pay its subcontractors or material suppliers even after you pay your “contractor.” Worst of all, you may never know if your “contractor” has paid its subcontractors or material suppliers until the day you get served with a lawsuit announcing that your own home has been slapped with a mechanic’s lien by “unpaid” subcontractors or material suppliers.
Real-life examples of this “contractor nightmare” in the home repair/improvement industry include:

• A homeowner in a small town in California hired a “contractor” to do home repairs and ended up paying twice for the materials used on the job. It seems that the “contractor” went bankrupt and the company that supplied the materials for the job slapped a mechanic’s lien on the home when the “contractor” didn’t pay them for the materials used for the home re-pair.
•  A homeowner in a small town in California hired a “contractor” to do home repairs and ended up paying twice for the materials used on the job. It seems that the “contractor” went bankrupt and the company that supplied the materials for the job slapped a mechanic’s lien on the home when the “contractor” didn’t pay them for the materials used for the home re-pair.• A retiree in Florida thought he had selected a good “contractor” for his home repair and paid$8,507 for the job. Imagine his shock when he later received a letter informing him that he had to pay an additional $4,788! Why? It turns out the “contractor” didn’t pay the manufac-turer of the materials, and that meant under state law the homeowner was legally responsible to pay for the materials!

Required Building Permits Are Not Obtained and Building Codes Are Not Followed Obtaining the required building permits before work is done to your home and having the contractor follow the applicable building codes may not sound like important points, but with-out proof that work performed was legally permitted and meets the current building codes, a homeowner could be facing a nightmare down the road not to mention the possibility of being exposed to more immediate health and safety hazards. To avoid this nightmare, be sure that any contractor you hire for home repairs or improvements obtains all necessary building permits and completes the work according to applicable building codes and inspection requirements.

•  A California couple was left “holding the bag” after they purchased a home that contained home improvements for which the “contractor” never obtained proper permits and which didn’t meet the applicable building codes. When their home “literally started to cave in,” they found out to their shock that they (not the “contractor” who was conveniently out of business) were responsible for the thousands of dollars necessary to make their house comply with the building codes. To make matters worse, the couple’s homeowner’s insurance com-pany refused to cover any of the cost of the repairs.•  A California couple was left “holding the bag” after they purchased a home that contained home improvements for which the “contractor” never obtained proper permits and which didn’t meet the applicable building codes. When their home “literally started to cave in,” they found out to their shock that they (not the “contractor” who was conveniently out of business) were responsible for the thousands of dollars necessary to make their house comply with the building codes. To make matters worse, the couple’s homeowner’s insurance com-pany refused to cover any of the cost of the repairs.

•  As a result of this type of “nightmare,” some areas now require home sellers to certify that all repairs or improvements in their homes had the proper building permits. What this can mean is that if all of the repairs and improvements to your home didn’t have the proper building permits, then the buyer can demand that you obtain all of the building permits which, after the fact, can be a very expensive and lengthy process for you.

Nightmare #3: Hiring “Contractors” That Lack A Legal License
Everyone knows the dangers of someone getting behind the wheel without a driver’s license required by the state. So why would you let a “contractor” into your home that doesn’t have the proper licenses required by the state? “Contractors” that choose to operate without the required legal licenses are making a choice to not comply with a very basic law designed to protect the public. If a “contractor” chooses to break the law by refusing to have the required legal licenses, you may want to ask that “contractor” about any other laws the “contractor” may have “chosen” to break in the past.
Real-life examples of this “contractor nightmare” in the home repair/improvement industry include:
• The California Department of Consumer Affairs once conducted a “sting” operation to catch unlicensed “contractors.” Two days of the “sting” resulted in the issuance of a num-ber of misdemeanor charges and administrative citations. What’s worse is that three of the unlicensed “contractors” were arrested on the spot and taken into custody. One of those arrested allegedly had an outstanding $20,000 arrest warrant for sexual assault.
• The Florida Department of Business and Professional Regulation nabbed 49 unlicensed “contractors” in a six month sting operation. Three of the unlicensed “contractors” were immediately arrested on the spot. One was allegedly under the influence of Oxycontin, Va-lium and Klopin. Two others were arrested because they allegedly had outstanding arrest warrants for armed robbery and assault and for a DUI charge.

Nightmare #4: If A Worker Is Injured In Your Home, Are You Liable?
You wouldn’t dream of living in your home without having liability insurance, but hiring a “contractor” without workers’ compensation insurance or hiring an unlicensed “contractor” can prove to be a nightmare for you. You never want to be in the position that you are liable if a worker sent by your “contractor” is injured in your home.
Real-life examples of this “contractor nightmare” in the home repair/improvement industry include:
• A California homeowner was being prudent when he asked his “contractor” for a copy of the “contractor’s” workers’ compensation insurance. However, the homeowner failed to notice that the insurance policy had already expired. When the “contractor’s” worker was injured on the job, the worker sued the homeowner to pay for his “on the job” injuries.
• In another situation, a homeowner was found to be legally responsible to pay for the full cost of a worker’s “on the job” injury because the homeowner hired an unlicensed “con-tractor” who sent the worker to the house.

Nightmare #5: Inviting the Wrong “Contractor” Into Your Home
There is a lot to think about when deciding on a new comfort system, but one of the most cru-cial factors to determine is who do you want in your home. The contractor that you hire will be in your home, around your family, and maybe even around while you’re the only one home. Be sure to choose a contractor that you are comfortable being around and having in your home because unfortunate events can occur when homeowners make the wrong choice on who to invite into their home.
Real-life examples of this “contractor nightmare” in the home repair/improvement industry include:
• In another “sting “ operation conducted by The California Department of Consumer Af-fairs, nine people were arrested and taken to jail. One of those arrested had already been arrested three times for contracting without a license. Even worse, this time the “contrac-tor” showed up with another man who was determined to have been recently convicted of burglary and was also wanted on two “No Bail” warrants for Sexual Battery, Assault with a Deadly Weapon, Assault with Intent to Commit Rape, False Imprisonment and Burglary.
• A 34 year old woman hired a “contractor” to help her with some interior remodeling. Unfortunately for her, the “contractor” allegedly broke into her home at 11 pm at night, stood over her bed with a knife and then attempted to sexually assault her. After the “con-tractor’s” arrest, local police stated that “He’s a predator” and started an investigation into similar crimes the “contractor” may have committed.

Nightmare #6: Improperly Installed Home Comfort Systems Can Rob You of
Energy Savings
If your home comfort system isn’t installed right the first time, a poor installation job can rob your home comfort system of its efficiency which in turn can rob you of the comfort and sav-ings you were seeking. In fact, poor installation can even reduce the life expectancy of your home comfort system and cause you problems and frustration down the road. Be sure that the contractor that you select is licensed and is a professional that will follow the necessary instal-lation procedures required for optimal performance of your home comfort system. A consumer bulletin from The United States Environmental Protection Agency warns:

• When an air-conditioner is not sized or installed correctly, its performance can be reduced by as much as 30 percent.”
• “Today, more than half of all air-conditioners in U.S. homes are believed to be adversely af-fected by one or more installation issues.”