Legal Question in Real Estate Law in Michigan

We are a cleaning company that has been working for a large property management group. The management group is slow at paying. They send checks every two to six months. The property that they manage is getting foreclosed on. The property is owned by some one out of new york but we have been getting checks from the management company. Do I have to worry about the owner not paying or is it the property management groups responsibility to pay me.


Asked on 7/29/10, 4:18 pm

1 Answer from Attorneys

Shelly Schellenberg MI & FL private practice

The answer lies in your contract with the management company. If your agreement states that it is the management company's responsibility to pay you, then it is obligated, regardless of who owns the building. If you don't have a written contract, or if the contract doesn't clearly spell out the management company's duty to pay you, then you should be concerned.

If the management's duty to you is tied to its collection of payments from the owner, you may not get paid if the owner defaults. It appears that the owner has defaulted, and your checks are irregular, and slow in coming. This should be a red flag to you, as the management company may also be in financial distress. You should have your contract reviewed by an attorney, who can tell you what your rights are under the contact. Your lawyer may want to inform the management company that you will not permit them to get more than 1-4 weeks behind in your payment. You may want to withold services when payment is not made on time. Otherwise, you could end up working for 6 or 7 months for free.

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Answered on 8/04/10, 6:30 am


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