charles45227
10-30-2006, 04:42 PM
Hi,
I have a home renovation loan with a local bank. The loan is setup such that as the contractor finishes different pieces of the project, he receives "draws" from the bank.
The "draws" are approved by an indepent inspector, selected by the bank and paid for by us. The contractor, the inspector, and I sign "draw" requests as the project is completed, and the bank pays the contractor.
The issue is that I am not a professional inspector, and I've been depending on the independent inspector to provide the final word on completion. What I see finished by the contractor seems good to me, so I sign. I have been wrongly assuming that the inspector has been closely checking for completion on things that I do not understand (electric, plumbing, HVAC, etc.).
However, the loan fund is now fully withdrawn, and the work is not even close to complete.
While the contractor is likely liable (he is under contract to get the work done for a specified amount), I'm wondering if the independent inspector who has approved his work is also somewhat liable.
Or, is nobody liable but me since I also signed the "draw" requests?
Thanks.
I have a home renovation loan with a local bank. The loan is setup such that as the contractor finishes different pieces of the project, he receives "draws" from the bank.
The "draws" are approved by an indepent inspector, selected by the bank and paid for by us. The contractor, the inspector, and I sign "draw" requests as the project is completed, and the bank pays the contractor.
The issue is that I am not a professional inspector, and I've been depending on the independent inspector to provide the final word on completion. What I see finished by the contractor seems good to me, so I sign. I have been wrongly assuming that the inspector has been closely checking for completion on things that I do not understand (electric, plumbing, HVAC, etc.).
However, the loan fund is now fully withdrawn, and the work is not even close to complete.
While the contractor is likely liable (he is under contract to get the work done for a specified amount), I'm wondering if the independent inspector who has approved his work is also somewhat liable.
Or, is nobody liable but me since I also signed the "draw" requests?
Thanks.