Get it in Writing

I was asked by someone who is close to me to review the terms of a small loan she had qualified for was written. I did not like the terminology of the terms and I explained to her why. This construction has a third-party lender who will lend money for the completion of project which the insurance policy didn’t covey after server storm damage. The construction company’s lender wants to loan $3001 dollars more than what was needed, but however if additional monies were needed it built in the $3001 cushion. Their agreement with the construction firm they’d lend the $9001 dollars even though only $7000 was needed to complete the project according to the contract. There was a disclosure which said at the construction company’s demand the entire $9,001 would be issued at the owner’s expense without the need of further approval.  This disclaimer made sense between the contractor and lender but I did not like that the contractor made the call and the homeowner would be on the hook for the bill.    

The contractor and I went around and around for quite until the salesman for the construct firm said that the way it would be handled was that his firm would get a change order signed before any extra cost would occur. I told him he explained it beautifully but the judge couldn’t hear him so he would need to put it in writing. I do believe the construction firm is a good firm but I did not like them being able to do some little thing extra and have the authority to charge another $#001.

The construct company did send over on their letter head a letter stating that in order for any additional work to be preformed it would have to be approved by the responsibility parties. I contract was accepted and all is well now.

I said this to say read these contracts carefully and ask for clarifications. Do not let spoken words be the agreement between you. When you come to an agreement tell them to put it in writing. Judges can’t hear echoes of past meetings but they can read the written words of an agreement. Protect yourself and help our legal system.

Note:  I am not sponsored by any company or person therefore the use for the produce is my own and based on my personal empirical data. Images on this blog site are from a free source or taken by the author. No image or group of photos is intended to represent the people the author serves. The author does not care about Race (that is a politically correct term that he does not like because we are all of the same Race, the Human Race. He prefers the term ethnicity, color, religion, sex, gender, marital status, disability, genetic information, national origin, source of income, Veteran or military status, ancestry, citizenship, primary language or immigration status.) He is a service provider for all people. We will all rise together when we band together and help one another. Joseph Erwin is a Real Estate Broker, DRE # O2131799, and a CA general contractor # B 696662.  He resides in Southern California.