Results 1 to 18 of 18
  1. #1
    Join Date
    Mar 2007
    Location
    Spring City/Surrounding Philadelphia area
    Posts
    3,500

    Default Billing Inspection Fees at Settlement

    I have a client who showed for an inspection without payment and knowing she was under a time crunch, I said she could mail payment and I would still send the report the next day. She said she would put a check in the mail that day (4/26). Obviously since I am posting this, payment has not been received. I have sent multiple invoices and even saw the referring realtor at an inspection last week who I asked to contact the buyer. She called the buyer on the spot and said the buyer sated to her that she would mail payment.

    I'm now just going to mail an invoice to the title company to get payment at settlement. I've never had to do this before so I just want to get some feedback on how to go about it. Do I need to show at settlement and what type of documentation do I need to send to the title company? The realtor gave the name and address of the title company as well as the settlement date.

    Any feedback would be appreciated.

    Similar Threads:
    Inspection Referral SOC
    "It takes a big man to cry. It takes an even bigger man to laugh at that man". - Jack Handey

  2. #2

    Default Re: Billing Inspection Fees at Settlement

    Quote Originally Posted by Nick Ostrowski View Post
    I have a client who showed for an inspection without payment and knowing she was under a time crunch, I said she could mail payment and I would still send the report the next day. She said she would put a check in the mail that day (4/26). Obviously since I am posting this, payment has not been received. I have sent multiple invoices and even saw the referring realtor at an inspection last week who I asked to contact the buyer. She called the buyer on the spot and said the buyer sated to her that she would mail payment.

    I'm now just going to mail an invoice to the title company to get payment at settlement. I've never had to do this before so I just want to get some feedback on how to go about it. Do I need to show at settlement and what type of documentation do I need to send to the title company? The realtor gave the name and address of the title company as well as the settlement date.

    Any feedback would be appreciated.
    Call her and let her know you are going to file a small claims action which will reflect on her credit history. If she does not pay then file.


  3. #3
    Join Date
    Mar 2007
    Location
    Ormond Beach, Florida
    Posts
    27,035

    Default Re: Billing Inspection Fees at Settlement

    Quote Originally Posted by John Ghent View Post
    Call her and let her know you are going to file a small claims action which will reflect on her credit history. If she does not pay then file.

    Tell her that you will do that BEFORE closing ... and that if you have to do that ... she may not be able to close.

    That should get a quick payment.

    Jerry Peck, Construction / Litigation Consultant
    Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )
    www.AskCodeMan.com

  4. #4
    Join Date
    Mar 2007
    Location
    Santa Rosa, CA
    Posts
    2,772

    Default Re: Billing Inspection Fees at Settlement

    If it hasn't closed escrow, my experience has been that I get the escrow number and escrow agent's name from the realtor and send an invoice for the inspection to the escrow company. I typically add a $50 billing fee to the invoice.

    If it has closed escrow, small claims court or a bill collector are the only other options.

    Department of Redundancy Department
    http://www.FullCircleInspect.com/

  5. #5

    Default Re: Billing Inspection Fees at Settlement

    Quote Originally Posted by Gunnar Alquist View Post
    If it hasn't closed escrow, my experience has been that I get the escrow number and escrow agent's name from the realtor and send an invoice for the inspection to the escrow company. I typically add a $50 billing fee to the invoice.

    If it has closed escrow, small claims court or a bill collector are the only other options.
    Another thought: In some states you can put a "Mechanics Lien" on property. Check with a Lawyer. If she has closed and you can put a lien on then she can never sell until she satisfies you. And, does you agreement have a non-payment clause that allows you to put interest on the unpaid fee?


  6. #6
    Join Date
    Mar 2007
    Location
    Ormond Beach, Florida
    Posts
    27,035

    Default Re: Billing Inspection Fees at Settlement

    Quote Originally Posted by John Ghent View Post
    Another thought: In some states you can put a "Mechanics Lien" on property. Check with a Lawyer. If she has closed and you can put a lien on then she can never sell until she satisfies you.
    Many (most?) such lien laws are for 'permanent' work, and an inspection is not only 'not permanent', all inspections are not even 'permanent for a day' as the inspection represents the 'conditions at the time of the inspection'.

    However, non-payment is a 'breach of contract' ... provided the "Pre-Inspection Agreement" is considered a "contract". Shortly after starting in the business I changed to "Contract for Services" as that really is what a "Pre-Inspection Agreement" is when you get down to it. so it should be called that ... "a contract" ... "for services" ... as that is all the inspector is providing - "services".

    Jerry Peck, Construction / Litigation Consultant
    Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )
    www.AskCodeMan.com

  7. #7
    Join Date
    Mar 2009
    Location
    Denver
    Posts
    962

    Default Re: Billing Inspection Fees at Settlement

    Lisa Endza
    Director of Communication
    InterNACHI

  8. #8
    Join Date
    Mar 2007
    Location
    Spring City/Surrounding Philadelphia area
    Posts
    3,500

    Default Re: Billing Inspection Fees at Settlement

    Thanks for the feedback everybody. I e-mailed another invoice today (3rd one) and advised if payment is not received that I will send an invoice to the title company to be paid at settlement and there would be an additional $50 fee tacked on if it goes that route. I copied her realtor on the e-mail. We'll see what she does.

    "It takes a big man to cry. It takes an even bigger man to laugh at that man". - Jack Handey

  9. #9
    Join Date
    Mar 2007
    Location
    Garland, TX
    Posts
    661

    Default Re: Billing Inspection Fees at Settlement

    Quote Originally Posted by Nick Ostrowski View Post
    Thanks for the feedback everybody. I e-mailed another invoice today (3rd one) and advised if payment is not received that I will send an invoice to the title company to be paid at settlement and there would be an additional $50 fee tacked on if it goes that route. I copied her realtor on the e-mail. We'll see what she does.
    “A man who procrastinates in his choosing will inevitably have his choice made for him by circumstance.” Hunter S. Thompson

    why wait to contact/bill the title company, they obviously have not honored your agreement/contract

    Best to you Nick as this gets resolved

    badair http://www.adairinspection.com Garland, TX 75042 TREC # 4563
    Commercial-Residential-Construction-EIFS-Infrared Thermography
    life is the random lottery of events followed by numerous narrow escapes

  10. #10
    Join Date
    Mar 2007
    Location
    Spring City/Surrounding Philadelphia area
    Posts
    3,500

    Default Re: Billing Inspection Fees at Settlement

    Quote Originally Posted by BARRY ADAIR View Post
    “A man who procrastinates in his choosing will inevitably have his choice made for him by circumstance.” Hunter S. Thompson

    why wait to contact/bill the title company, they obviously have not honored your agreement/contract

    Best to you Nick as this gets resolved
    Settlement is 7/13. I'll give the buyer a week to get her chit together and pay me. If nothing, I'll get everything together to send to the title co. Which by the way leads back to my original question in the first post......what do I need to send to the title company to make sure I am giving them adequate documentation?

    "It takes a big man to cry. It takes an even bigger man to laugh at that man". - Jack Handey

  11. #11
    Join Date
    Mar 2007
    Location
    Ormond Beach, Florida
    Posts
    27,035

    Default Re: Billing Inspection Fees at Settlement

    Quote Originally Posted by Nick Ostrowski View Post
    ...what do I need to send to the title company to make sure I am giving them adequate documentation?
    I would send the title company an email (so the information is in writing) and ask them what they require for you to get paid at closing, in case different title companies have different requirements.

    You could "call first" to get the information, then confirm with an email to get it in writing.

    Jerry Peck, Construction / Litigation Consultant
    Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )
    www.AskCodeMan.com

  12. #12
    Join Date
    Mar 2007
    Location
    Spring City/Surrounding Philadelphia area
    Posts
    3,500

    Default Re: Billing Inspection Fees at Settlement

    Thanks Jerry.

    "It takes a big man to cry. It takes an even bigger man to laugh at that man". - Jack Handey

  13. #13
    Join Date
    Mar 2017
    Location
    California
    Posts
    134

    Default Re: Billing Inspection Fees at Settlement

    I think she showed up without payment on purpose because she had no money to pay you. Then depended on her ability to lie her way out of the difficulty by promising to mail a payment later. Seriously who "fogets" to have payment with them? She was probably hoping to be able to take advantage of you and iher tactic worked.
    Too bad when you do something for someone that you normaly would not do, then they behave thus.

    Of course this is my opinion only, the situation may have been different than how I interpreted it.


  14. #14
    Join Date
    Mar 2007
    Location
    Santa Rosa, CA
    Posts
    2,772

    Default Re: Billing Inspection Fees at Settlement

    Quote Originally Posted by Elizabeth Chambers View Post
    I think she showed up without payment on purpose because she had no money to pay you. Then depended on her ability to lie her way out of the difficulty by promising to mail a payment later. Seriously who "fogets" to have payment with them? She was probably hoping to be able to take advantage of you and iher tactic worked.
    Too bad when you do something for someone that you normaly would not do, then they behave thus.

    Of course this is my opinion only, the situation may have been different than how I interpreted it.
    Elizabeth,

    I find that many times buyers do not remember to bring their checkbook with them (I never carry mine anymore) and some inspectors do not like to take credit cards. For instance, Square (depending on the inspection price and whether or not the card is swiped or keyed-in) takes $15-25 from every transaction that I run through them. That's a sizable chunk (in my opinion) and I would prefer a check (or cash). However, not everyone carries hundreds of dollars on them, so I wince whenever I take a credit card.

    On the other hand, it seems like Nick has kind of neglected this for the past month (easy to do). Captain Hindsight says "He shouldn't have sent the report before collecting payment."

    Department of Redundancy Department
    http://www.FullCircleInspect.com/

  15. #15
    Join Date
    Mar 2007
    Location
    Spring City/Surrounding Philadelphia area
    Posts
    3,500

    Default Re: Billing Inspection Fees at Settlement

    No neglect on my part Gunnar. I have sent her three invoices in addition to giving her payment info when I e-mailed the report. And her realtor called her on the spot when I told her about the nonpayment at a recent inspection.

    Elizabeth, she did ask if would take a debit card at the inspection so she offered to pay that way. But,
    I do not take CCs due to the costs associated with running a card. And some buyers do forget to bring their checkbooks. It happens. But 99.9% will get a check in the mail and I receive it within a couple days. This client is the .1% taking advantage of my generosity.

    I am not waiting any longer to contact the title company. Going to call today to get the ball rolling.

    "It takes a big man to cry. It takes an even bigger man to laugh at that man". - Jack Handey

  16. #16
    Join Date
    Mar 2007
    Location
    Spring City/Surrounding Philadelphia area
    Posts
    3,500

    Default Re: Billing Inspection Fees at Settlement

    Done. Contacted the title company, got a contact name to send an email to, and sent the invoice. Settlement is 7/13. Onward and upward. Thanks all for the suggestions and info.

    "It takes a big man to cry. It takes an even bigger man to laugh at that man". - Jack Handey

  17. #17
    Join Date
    Mar 2007
    Location
    Santa Rosa, CA
    Posts
    2,772

    Default Re: Billing Inspection Fees at Settlement

    Nick,

    I hope I didn't offend you. That wasn't my intent. On occasion, I will forget that I haven't been paid or received a signed contract and am poor about follow-up. I hate hounding people.

    Department of Redundancy Department
    http://www.FullCircleInspect.com/

  18. #18
    Join Date
    Mar 2007
    Location
    Spring City/Surrounding Philadelphia area
    Posts
    3,500

    Default Re: Billing Inspection Fees at Settlement

    Quote Originally Posted by Gunnar Alquist View Post
    Nick,

    I hope I didn't offend you. That wasn't my intent. On occasion, I will forget that I haven't been paid or received a signed contract and am poor about follow-up. I hate hounding people.
    No worries Gunnar. No offense taken.

    I finally squeezed payment out of this client. I'm just waiting to make sure I don't get a a non-sufficient funds notice from my bank before contacting the title company to let them know I got paid.

    "It takes a big man to cry. It takes an even bigger man to laugh at that man". - Jack Handey

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •