Home Improvement Contractor - Licensed Contractors
in a construction loan does the buyer and the general contractor?
have to sign on all draws? Does the buyer have rights to know for what and how much material,Etc, costs on an ongoing basis thru the whole process. My brother in law is the contractor and is taking draws out and we haven't approved anything and how could the bank approve it without our signature? In law says the doesn't have to show him receipts since we signed a contract with him.. I just found out on internet that there is a construction loan sworn statement for. We never heard of this and know that we didn't sign one. Should we have gotten one? Could he possibly not be a licensed contractor. Sure would appreciate some input.
Public Comments
- The buyer usually doesn't need to sign off on subcontracts. That's why you get a contractor, so you don't have to worry about these things. But if you think he's not licensed, you should call up the appropriate authority in your state and find out.
- May i suggest that you contact your local Better Business Bureau. They have put together a video called "Hiring a Home Contractor" that will give you alot of the info you need to proceed . If you wish you can drop me an email sometime and i'll be happy to share more info with you on this matter. I have brought it up on here on ceratin other occasions ,but some ppl take great offense to having customers know their actual rights of what to really ask for.
- It depends on the bank through which it is issued. Generally though the person taking the loan doesn't sign for each draw. They just sign allowing up to X dollars to be issued for the work. The money from such loan can only be issued to the general contractor. You don't get to know the cost he pays for materials, all you get to know is the cost of what he bills you. If there was a price agreed upon before then that serves as the basis for what he charges you. Therefore you'll only get an invoice showing the work when done, at the cost he charges, with credit for the amount he's already drawn. You can ask the bank to tell you how much was taken out, and when, but that's it, no forcing the contractor to tell you what he pays his sub-contractors. There's nothing fishy here. Normal general contractor work, and you're only paying has the work is done.
