I am a salesperson for a company that has a policy of asking no money up front from the customer. We work storm damaged areas. The commission structure is 10% overhead, then 50/50 profit split. I have a customer whos check bounced once the roof was put on because the IRS garnished his account now he cant pay. The company is telling me that i am responsible for 50% labor and materials. I am just wanting to know if this is standard practice.
I kind of like that policy.
Its like the fair thing to do if someone has to clean up the mess.
Ultimately it is the homeowners responsibility
But what do you do when they come up with excuses…
You file a lien and then hire a lawyer to execute it.
This might need Judge Judy!!
I don’t see how you are responsible to help pay if the ownership will do a job with no deposit. I wouldn’t sell under those terms. They just need to turn it over to their attorney.
What does your contract say? It is a standard if the employment contract says so. If not, you aren’t liable. You may have to quit your job or be fired, then you can fight it in court.
I know where I live once the job is complete the burden replies upon the customer to pay. You can put a lien on the house and it can never sell without you getting your money first. I would ask for proof of IRS garnishment as we are already into Q4. The salesman should never be responsible for the whole job, you just might have to eat commission but even then it is not up to you to collect.
Have you really read your sub-contract ? Does it say that you have to pay 1/2 of your deals gone wrong? You need a lawyer to look it over. You my friend also have rights. You can place a lien on property you did not get paid in in some states. You also have other labor laws behind you, if this contractor rips you off. Consult a lawyer, with contract in hand.
That’s not an industry standard. It is in fact very much the exception.