Contractor trying to charge Running Charges

[Jdearmas17]

I assist homeowners in closing out permits left to expire by old contractors. A prior client upon selling their property discovered that a permit that should have been closed in 2018 was still open. After failed attempts at reaching out to the contractor with no response he hired me and we got it closed. Now when he went to terminate the NOC we had to file because contractor never did one, the contractor is claiming my client owes him "running charges". Upon my research we realized the contractor kept letting the permit expire and would then reopen it consecutively for five years. Contractor is now claiming that he will file a lien if he is not paid his "running charges". I believe after 5 years a contractor can no longer file a lien and not to mention my client is no longer the owner of the property. Any insight on this?

 

[jar546]

I assist homeowners in closing out permits left to expire by old contractors. A prior client upon selling their property discovered that a permit that should have been closed in 2018 was still open. After failed attempts at reaching out to the contractor with no response he hired me and we got it closed. Now when he went to terminate the NOC we had to file because contractor never did one, the contractor is claiming my client owes him "running charges". Upon my research we realized the contractor kept letting the permit expire and would then reopen it consecutively for five years. Contractor is now claiming that he will file a lien if he is not paid his "running charges". I believe after 5 years a contractor can no longer file a lien and not to mention my client is no longer the owner of the property. Any insight on this?

NOC Expires after one year. Verify there is a recorded NOC on file that did not expire.

 

[Jdearmas17]

NOC Expires after one year. Verify there is a recorded NOC on file that did not expire.

Thanks for your reply. There was an expired one but wasn't even for the work performed under the permit. Thats why we had to file a new one. I told the new owners lawyer just to leave it alone that the NOC would expire in a year anyways. But they are insisting they want it terminated.

 

[e hilton]

NOC?

 

[TheCommish]

What is a NOC please?

 

[ICE]

The first link explains the NOC (Notice Of Commencement) and the second link is a pdf NOC.

Notice of Commencement

For protection under the Florida’s Construction Lien Law and to avoid the possibility of paying twice for improvements to real property, homeowners must record a Notice of Commencement with the Clerk of Courts before inspections, if the value of work on the application exceeds $2,500.

www.miamidade.gov

https://www.miamidade.gov/permits/library/commencement-notice.pdf

I Googled "running charges". All I got was "The cost of doing business". Such things as the light bill, insurance etc. It's not clear to me how a contractor is owed monies for that....ever, much less five years after completion. Perhaps there is some contractural obligation that I am not aware of.

 

[tmurray]

One would assume that if the contractor was so interested in his costs, he would have completed the contract and closed out the permit.

...or at least responded when his client called initially.

 

[Jdearmas17]

NOC?

Notice of Commencement

 

[Jdearmas17]

The first link explains the NOC (Notice Of Commencement) and the second link is a pdf NOC.

Notice of Commencement

For protection under the Florida’s Construction Lien Law and to avoid the possibility of paying twice for improvements to real property, homeowners must record a Notice of Commencement with the Clerk of Courts before inspections, if the value of work on the application exceeds $2,500.

www.miamidade.gov

https://www.miamidade.gov/permits/library/commencement-notice.pdf

I Googled "running charges". All I got was "The cost of doing business". Such things as the light bill, insurance etc. It's not clear to me how a contractor is owed monies for that....ever, much less five years after completion. Perhaps there is some contractural obligation that I am not aware of.

I thought maybe "running" the permit as a way to charge extra monies......this is all I could up with. I explained to the owner that the contractor may have possible purposely done this to get extra $$$$. There is no reason I can see where you will keep renewing a permit for work that was done and paid for when you can easily call for inspections and get it closed.