Legal Question in Real Estate Law in California
Services paid for but not received
My parents built a home and moved in last year. They had an oral contract with the landscaper regarding the amount and kinds of trees that would go in, which areas would have grass, etc. It has been more than a year now that my parents have been in their house, and the landscaping is still incomplete. We have heard rumors about the company filing for bankruptcy and my parents have already paid for some of the work that has not been completed. Is there anything that they can do from a legal aspect to ensure that that money isn't totally lost?
1 Answer from Attorneys
Re: Services paid for but not received
No. Not really. In the future don't pay for work unless its done or unless the contractor is bonded. If the latter is the case, make sure to get the information on the bond.
If bankruptcy is filed and the contractor took the money under false pretenses (i.e. fraudulently) it is possible to prevent discharge of the debt through an adversary proceeding in bankruptcy, but not worth the expense unless the amount of money is large and the evidence of fraudulent intent is clear.
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