Josh Rogan is right, Subject2 is frowned upon by Lenders, but not illegal.

Over time, you will get threatened with law suites, and claims of illegal crap.

There is another thread regarding this situation and one must be careful not to simply call an employee a sub just to avoid the employee contributions an employer must make, including workers comp.

This kind of thing makes buyers wonder what other stupid things these workers did that we can't see.

:)Point is, filing false liens is illegal.

A contractor who pulls the permits can have anyone of his workers (employee or 1099) do the work.

Thanks Max & Rob, so your telling me that if say a wholesaler sells his property to a cash buyer that I introduced him too and no RE agent or broker was involved that it's illegal to get paid a fee of some sort?

At about mid October, workers come to the house and put a scaffolding (frame for construction) in front of our house and the balcony.

Why not close immediately on the lot so you are in fact the owner of record, then send your letter explaining to the bank that their property encroaches your property illegally and you intend to seek remedies and that as a compromise, you will buy their property for x dollars and close by x date.

If I hired 380 hard workers I'd go bankrupt fast.