America's Real Estate Academy

#1. Collecting Fees - What can I do to collect unpaid appraisal or inspection fees?

• Before I get to actions that can be taken, let me give you a reminder and a tip. The reminder is that one of your options may NOT be to place a mechanic's lien on the property that you appraised (or inspected). Georgia is one state that does not grant Mechanics liens privileges for appraisers (or home inspectors) or for real estate agents in transactions involving residential property. The tip is to avoid letting your receivables age. Be aggressive about getting paid and be sure to send timely, friendly, and written reminders about the debt due. If that fails, send a certified letter with tracking to show delivery. The letter should be a final demand for payment and along with a remedy you intend to follow in the event that payment is not made within a specific manner and time stated in the letter.

• If that fails, consider filing a claim (complaint) with the small claim court or magistrate court. If the debtor is a corporation or LLC, contact the Secretary of State's office to find out who the Registered Agent is for the business. You will have to file your claim in the county where the Registered Agent is located. If the debtor is an individual, you can file your claim in the county where the individual lives. Your claim for relief should state detailed but succinct statements alerting the court to the facts of the case. That the debtor agreed to pay for the service; that the service was rendered; that the debtor has failed to pay for the service; that demand has been made for payment; that the debtor has not yet paid for the service. The precise process for filing is available on line at most county magistrate court websites.

• Assuming you have a legitimate claim, the debtor, now defendant, will likely not answer the complaint. If the claim for relief is answered by the defendant (court rules usually allow a period of time such as 30 days from the date of service for the defendant to "answer"), a date for a hearing in front of the magistrate judge will be set. At that time you will have to prove the facts you alleged in the complaint. You will want to do some research as to how to prepare for your hearing and how to present evidence to the court - also review the court rules (should do that before filing the claim). The judges appreciate when you are brief, to the point, and prepared to present your claim.

• If there is no answer to the complaint in the time required by the court (the normal circumstance) you will have to file a motion for a "default judgment" on the basis that the defendant has failed to answer (the courts are required to issue the default judgment in the event the defendant does not answer). There is a brief waiting period 15-30 days during which the defendant might be allowed to answer late.

• Once you have received your default judgment, you will want to file interrogatories - questions about where the defendant has property and bank accounts. You have a limited time period after acquiring the judgment to file these (without having to file a new action), but they are important. The interrogatories are basically a request that the court order the defendant to answer the questions – that is filed with the court and sent to the defendant by certified mail (always consult court rules). You will get paid at this point, if not, in 30 days you can file a motion to compel discovery – I don’t think anyone will take it that far before paying.

• You can obtain additional information from Cobb County, Georgia Magistrate Court Website. Where you find interrogatories and instructions for the interrogatories. All other forms can be found here.

• Always check for information from the court in the county where the complaint will be filed.

#2. Should I take credit cards?

• Well have you ever used a credit card? If you answered yes, don't you think your customer would like to benefit from the same convenience? By taking credit cards and having a clear "no refund" policy, you will know immediately if your payment is secured. Small business now can take credit cards without any additional equipment. Your appraisal and home inspection fees can be paid by credit card just by logging into your online account and entering the cardholder's information. Your approval (or disapproval) will be instantaneous. The fees are relatively small considering the convenience and overall certainty of getting paid. What may be the best company providing merchant services is right here in Alpharetta. Check out Charge.com for the best rates, same day approval, FREE application, FREE setup, and FREE technical support.

#3. Should I incorporate?

• This is a decision you should make based upon your financial position and your intended company growth. There is no one fit for all businesses. Your accountant and lawyer will know your personal situation and can advise you best. You can find a wealth of free resources on the internet to better educate you on the tax and legal ramifications about this process. AREA posts several sites on our corporate website under Business Resources.