Legal Question in Construction Law in California

Re: He Fell Off The Roof!!

I'm not so sure that the project is a good one begin with basic low what you have just said. Aside from that you can protect yourself since he is the only contractor in your contracting with him for a specific purpose. Nothing say she can't go on with the job at higher another contractor and paced back contractor to complete it. The Contracto should have certain clauses that protect you applicable to the death of the contractor in your own death, also, think outside of the box what about disability. There are so many variables in this situation that you need a good competent real estate attorney to hopefully cover many of them. No attorney can predict every saying that will happen in the future, or could happen, or else the contract would be hundreds of pages long. I am sure that you hadn't attorney look at your contract, yeh sure. If you wrote yourself you know my next comment would not be beneficial.i have been practicing law in this speciality for over 30 years in the san francisco bay area and if you wish to consult with me you can contact me at 925-945-6000.

Re: He Fell Off The Roof!!

What you are describing is in fact a joint venture or single-purpose general partnership, and should be documented as such by a lawyer who has experience in drafting business agreements.

The agreement can and should cover contingencies such as the death or incapacity of a party and, perhaps, the inability of the financial partner to provide the money.

You can provide for completion by another builder in the event the partner cannot or does not perform.

You should also consider ways to escrow or hold back the funds based on progress and/or a budget. It would be foolish to provide the working partner with possession of, or access to, all of the money up-front.

You should also consider covering certain risks with insurance, possibly requiring a performance bond, and having on-going financial controls through an accountant with project-management experience.

Re: He Fell Off The Roof!!

Mr. Whipple's suggestions are valid. Another way of dealing with this is to secure your investment with a deed of trust on the property. It all depends on what kind of deal you want to negotiate.

Just make sure that everything is set forth in a way you can understand in a written contract. Legal advice before there is a problem costs much less than legal advice after you have parted with your money and are arguing with your friend.