Getting paid as a Sub-Contractor.

[JMGappraisals]

I work for a company, and when I started with this company I was told I dont get paid until the company gets paid. Also there is work out there that I have not been paid on in over 6 months. I know some of the clients out there (AMC, lenders, mortgage companys, Etc.) dont pay until the loan closes(accepted or denied) but 6 months and some even a year old. Is this normal in the appraisal world? Do most companies only pay when they get paid by the client?

 

[Abzntminded]

Same policy w/my company, but I have to say they are excellent at taking care of accounts receivable. Only clients with a track record are allowed to pay out of escrow. Only once did I have to step in and make a call myself to get a client to pay.

 

[Liz Mura]

Be careful

I worked for a company years ago in Rochester, NY that operated like that. The owners of the company even invited my husband an I to their wedding. They kept telling me they hadn't been paid by the Lenders yet. In the end, they filed bankruptcy and owed me thousands. The court considered me an unsecured debtor. I got nothing and I imagine I financed their wedding.m2:

The worst part was that they never even closed their doors, just changed the name of their company. Be very careful.

 

[Mountain Man]

Nope, that's not the way it is with us. Unless the request is from an individual or new untested client, then we require $$$ at the door... at least 50%. Then if the appraiser doesn't collect and was told to collect, then yes they are out just like we are.

 

[Richard Carlsen]

Depends upon your split. If it is less than 60%, I would think that you have something to complain about. If it is over, that's not a bad deal and you have to decide for yourself if taking the chance on a client paying is worth it.

There are no hard and fast rules on this. It is what you agree to with the owner. It's up to you to decide if this is a fair deal. If not, go to the front door, turn right and don't come back.

 

[I'm-A-Survivor]

I work for a company, and when I started with this company I was told I dont get paid until the company gets paid. Also there is work out there that I have not been paid on in over 6 months. I know some of the clients out there (AMC, lenders, mortgage companys, Etc.) dont pay until the loan closes(accepted or denied) but 6 months and some even a year old. Is this normal in the appraisal world? Do most companies only pay when they get paid by the client?

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While it is normal to not get paid until the company receives payment for your work, I would say that no, to not be paid for over 6 months is not a normal course of business....... Regardless of whether a loan closed or not you still should have been paid before then. Mortgage companies should always be C.O.D. AMC's and banks usually pay within 15-30 days. It appears that whomever is in charge of accounts receivables at your company has dropped the ball on those invoices???

 

[Kevin A. Spellman]

You have provided credit to two parties without recourse. You have also provided unjust enrichment. Most appraisers in your position typically lose. What benefit do you receive working under these conditions? I ran a 1099 shop and paid weekly back in the 80’s & 90s. I do suggest you make a business decision of how much credit you are willing to forfeit without recourse.

 

[Mike Garrett RAA]

My company policy was...YOU GET PAID WHEN WE GET PAID. I always provided free training and offered a reasonable split too.

 

[Abzntminded]

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It appears that whomever is in charge of accounts receivables at your company has dropped the ball on those invoices???

The key is if the Accounts Receivable person doesn't get paid unless the bill gets paid...

 

[Alison Swain]

Is there any way for you to confirm that the loans have closed? Access the county records to see if the mortgage has recorded. If you can, make copies of the filing. For loans which may have fallen through, call the lender/MB's accounts payable and tell them you're cross-referencing your records with theirs. See if they've paid on the outstandings.

Document everything and then go to your powers-that be, show them your evidence (after keeping a copy for yourself) and let them know that these things have been "over-looked" and that you're relieved they can now include them in your next paycheck.