WOOD DESTROYING PESTS AND ORGANISMS INSPECTION REPORT BUILDING NO. STREET, CITY, STATE, ZIP Date of Inspection No. of Pages 64 Hawthorne Way, San Jose CA 95110 8/18/2015 8 Firm Registration No. PR 4359 Report No. 19760 Escrow No. Ordered By: Property Owner/Party of Interest Report Sent To: Gillmor & Associates Isaac Polk, Trustee 1201 Franklin Mall 64 Hawthorne Way Santa Clara, CA 95050 San Jose, CA 95110 Attn: Lisa Gillmor Gillmor & Associates 1201 Franklin Mall Santa Clara, CA 95050 COMPLETE REPORT x LIMITED REPORT SUPPLEMENTAL REPORT REINSPECTION REPORT General Description: One story wood framed stucco exterior, single family residence with an detached two car garage. Inspection Tag Posted: Basement Gillmor & Associates 1201 Franklin Mall Santa Clara, CA 95050 Attn: Lisa Gillmor Other Tags Posted: Killroy 2008/ Best care Fumigation 2008 An inspection has been made to the structure(s) shown on the diagram in accordance with the Structural Pest Control Act. Detached porches, detached steps, detached decks and any other structures not on the diagram were not inspected. Subterranean Termites x Drywood Termites x Fungus/Dryrot x Other Findings x Further Inspection x If any of above boxes are checked, it indicates that there were visible problems in accessible areas. Read the report for details on checked items. Inspected by Mark Rodriguez State License No. OPR 9463 Signature You are entitled to obtain copies of all reports and completion notices on this property reported to the Structural Pest Control Board during the preceeding two years. To obtain copies contact: Structural Pest Control Board, 2005 Evergreen Street, Suite 1500, Sacramento, California 95815. NOTE: Questions or problems concerning the above report should be directed to the manager of the company. Unresolved questions or problems with services performed may be directed to the Structural Pest Control board at (916) 561-8708, or (800) 737-8188 or www.pestboard.ca.gov. 43M-41 (Rev. 10/01)
2nd THIS IS A STRUCTURAL PEST CONTROL INSPECTION REPORT NOT A BUILDING INSPECTION REPORT, THEREFORE NO OPINION IS BEING RENDERED REGARDING THE STRUCTURAL INTEGRITY OF THE BUILDING. THE FOLLOWING AREAS WERE NOT INSPECTED, AS INDICATED IN SECTION #1990, PARAGRAPH (j) OF THE STRUCTURAL PEST CONRTOL ACT AND RULES AND REGULATIONS FURNISHED INTERIORS, INACCESSIBLE ATTICS, INSULATED ATTICS AND PORTIONS THEROF, THE INTERIOR OF HOLLOW WALLS SPACES BETWEEN A FLOOR OR PORCH DECK AND THE CEILING OR SOFFIT BELOW, STALL SHOWERS OVER FINISHED BUTTRESSES AND SIMILAR AREAS TO WHICH THERE IS NO ACCESS WITHOUT DEFACING OR TEARING OUT LUMBER, MASONRY AND FINISHED WORK, BUILT-IN CABINET WORK, FLOOR BENEATH COVERINGS, AREAS WHERE STORAGE CONDITIONS OR LOCKS MAKE INSPECTION IMPRACTICAL. NO STORAGE IS MOVED FROM BENEATH THE SINKS OR FROM THE INTERIOR OF ANY CLOSETS AND ARE CONSIDERED INACCSSIBLE AREA. NOTICE :The Structural Pest Control Board encourages competive business practices among registered companies.reports on this structure prepared by various registered companies should list the same findings (i.e. termite infestations termite damage,fungus damage, etc.). However,recommendations to correct these findings may vary from company to company. Therefore, you may wish to seek a second opinion since there may be alternative methods of correcting the findings listed on this report that may be less costly. THE EXTERIOR SURFACE OF THE ROOF WILL NOT BE INSPECTED. IF YOU WANT THE WATER TIGHTNESS OF THE ROOF DETERMINED, YOU SHOULD CONTACT A ROOFING CONTRACTOR WHO IS LICENSED BY THE CONTRACTORS STATE LICENSE BOARD. IF A SEPARATE REPORT HAS BEEN REQUESTED, IT IS DEFINED AS SECTION 1 & SECTION 2 CONDITIONS EVIDENT ON THE DATE OF INSPECTION. SECTION 1: CONTAINS ITEMS WHERE THERE IS EVIDENCE OF ACTIVE INFESTATION, INFECTION OR CONDITIONS THAT HAVE RESULTED IN OR FROM INFESTATION OR INFECTION. SECTION 2: SECTION 2 ITEMS ARE CONDITIONS DEEMED LIKELY TO LEAD TO INFESTATION OR INFECTION, BUT WHERE NO VISIBLE EVIDENCE OF SUCH WAS FOUND. FURTHER INSPECTION: FURTHER INSPECTION ITEMS ARE DEFINED AS RECOMMENDATIONS TO INSPECT AREAS WHICH, DURING THE ORIGINAL INSPECTION, DID NOT ALLOW THE INSPECTOR ACCESS TO COMPLETE THE INSPECTION AND CANNOT BE DEFINED AS SECTION 1 OR SECTION 2. NOTE: This property was not inspected for the presence or absence of health related molds or fungi. By California law we are neither qualified, authorized nor licensed to inspect for health related molds or fungi. If you desire information about the presence or absence of health related molds or fungi, you should contact an Industrial Hygenist.
3rd 1. Subterranean Termites: ITEM 1A Old Inactive evidence of Subterranean termites were noted through out the subarea. Previous chemical treatment have been performed in 2008. RECOMMENDATION : Owners should periodically have the structure inspected as part of prudent home owner maintenance. ****** Information Item ****** ITEM 1B Subterranean termite damage was noted at the substructure framing (Floor joists, cripple studs, sheathing, porch framing, retaining wall cap, subfloor) where indicated on diagram. RECOMMENDATION: Remove damage and replace with new material or reinforce as necessary. NOTE : If damage extends into inaccessible areas, then a supplemental report and cost estimate will be submitted. ITEM 1C Old Subterranean termite tubes were noted at the areas indicated on diagram. 2. Drywood Termites: ITEM 2A RECOMMENDATION: Destroy all accessible termite tubes. Evidence of drywood termites was noted at the area(s) indicated on the diagram (Wood exterior siding of detached garage). Infestation extends into inaccessible area(s). RECOMMENDATION: Fumigate the entire structure with Vikane gas and Cloropicrin for the complete eradication of drywood termite infestation. This company will furnish all necessary instructions for the owners or concerned parties prior to the fumigation date scheduled. NOTE: OUR BID DOES NOT INCLUDE ANY PREP WORK THAT MAY BE NECESSARY. ALL INSTRUCTIONS MUST BE THOROUGHLY READ BY ALL PARTIES. FAILURE TO COMPLETE FUMIGATION PREP OR RETURNING PAPERS PRIOR TO FUMIGATION DATE MAY RESULT IN CANCELLATION AND/OR RESCHEDULING. ITEM 2B Drywood termite pellets were noted at the areas as outlined in item 2A where indicated on the diagram. 3. Fungus/Dryrot: ITEM 3A RECOMMENDATION: Remove and /or mask all accessible termite pellets. Old inactive Subterranean termite and fungus damage noted at the substructure framing and earth fill beneath side concrete porch. The area has been previously treated for termites. Damage was noted to the sheathing as there is a faulty grade condition and no seal off between the earth filled porch and sheathing/substructure framing. RECOMMENDATION: Remove concrete porch and earth fill beneath. Remove and replace all accessible damaged substructure framing. reframe with new material. Install proper flashings and install new concrete porch/steps.
4th 4. Other Findings: NOTE: The attic or portions of the attic(s) are inaccessible for one or more of the reasons listed. Air ducting, insulation making it unsafe to breathe or move safely over the ceiling joists, lack of adequate clearance or heat. There is no economically practical method to make these area(s) accessible, however, they may be subject to attack by wood destroying pests or organisms. No opinion is rendered concerning the conditions in these areas that are not inspected or accessible. ITEM 4A Waterstains were noted area where shown on diagram indicating possible leakage at the roof. RECOMMENDATION: The owner is to employ a licensed roofing contractor to inspect and repair the roof as found to be necessary. ****** This is a Section 2 Item ****** ITEM 4B There is earth to wood contacts and Subterannean termite infestation noted at the basement stair system framing. Possible damage may be present at areas embedded in the soil. RECOMMENDATION: Redistribute the soil to break the earth to wood contact. Install concrete pier supports on proper footings.treat soil with a Termiticide ( Termidor HE) if necessary. ITEM 4C Cellulose debris was noted through out the subarea. RECOMMENDATION :Remove the cellulose debris of a rakable size from the subarea and dispose of. ****** This is a Section 2 Item ****** NOTE : INTERIOR WALL CRACKS WHERE NOTED INSIDE THE STRUCTURE.. THESE CRACKS APPEAR TO BE FROM SETTLING. CONCERNED PARTIES SHOULD CONSULT WITH A PROPERTY INSPECTOR OR FOUNDATION CONTRACTOR FOR ANY ADDITIONAL INFORMATION. ITEM 4D There is earth to wood contact at several floor supports in the subarea. 5. Further Inspection: ITEM 5A RECOMMENDATION: Install concrete piers as needed to correct the earth to wood contact. ****** This is a Section 2 Item ****** Subterannean termite damage noted at column where indicated on diagram. RECOMMENDATIONS: Further inspection can be performed upon request. Open stucco and inspect inside the abutment, issue a Supplemental Report with Findings and further recommendations, if any. Our estimate is for the inspection holes only and does not include any repairs inside the abutments.
5th 5. Further Inspection: ITEM 5B Inaccessible abutment noted at area indicated on diagram. RECOMMENDATIONS: Further inspection can be performed upon request. Install inspection holes into these area(s), inspect inside the abutments, issue a Supplemental Report with Findings and further Recommendations, if any. Our estimate is for the inspection holes only and does not include any repairs inside the abutments. ****** Unknown Further Inspection Recommended ****** ITEM 5C The enclosed eaves are soffited therefore making the interior framing inaccessible for inspection. RECOMMENDATION: Further inspection can be performed but would require removal of finished materials. This will be performed upon request and at an additional charge. ****** Unknown Further Inspection Recommended ****** ITEM 5D There a several sashes painted shut throughout the structure. The bottom of the sashes and the runners are inaccessible. No opinions are made as to the absence or presence of infestation or fungus infection in these areas. RECOMMENDATION: Further inspection can be performed upon request after owners open these windows. ****** Unknown Further Inspection Recommended ****** ITEM 5E A limited physical inspection of the front wood porch was performed, some outward visible signs of termite infestation or fungus infection were noted in the visible and accessible areas. RECOMMENDATION :If concerned parties desire more information as to the condition of said porch, a further inspection will be performed upon request and a Supplemental Report and Cost Estimate will be submitted for any necessary repairs or chemical applications. NOTE: Due to the building materials used on this structure.it may be difficult to match the existing mill patterns and materials used in the original construction.we will replace damaged wood members with material that resembles,as closely as possible,the existing wood members with standard graded,readily available materials. "NOTICE : The charge for services that this company subcontracts to another registered company may include the companies charges for arranging and administering such services that are in addition to the direct costs associated with paying the subcontractor. You may accept Tyler Termite Control Inc's bid or you may contract directly with another registered company licensed to perform work. If you choose to contract directly with another registered company, Tyler Termite Control Inc. will not in any way be responsible for any act or omission in performance of work that you directly contract with another to perform."
6th IF WITHIN 24 HOURS FOLLOWING APPLICATION YOU EXPERIENCE SYMPTOMS of dizziness,headache,reduced awareness,slowed movement,garbled speech or difficulty in breathing,leave the structure immediately and seek medical attention by contacting your physician or Poison Control Center 1-800-222-1222 and notify your pest control company.the WARNING AGENT CHLOROPICIRIN,CAN CAUSE TEARING,RESPITORY DISTRESS AND VOMITING.ENTRY INTO THE SPACE DURING FUMIATIOM CAN BE FATAL SIMILAR TO COMMON SEASONAL ILLNESS COMPARABLE TO THE FLU, CONTACT YOUR PHYSICIAN OR POISON CONTROL CENTER AND YOUR PEST CONTROL OPERATOR IMMEDIATLEY. FOR FURTHER INFORMATION CONTACT ANY OR THE FOLLOWING : TYLER TERMITE CONTROL INC. 408.927.6300 POISON CONTROL CENTER San Mateo County - (800) 523-2222, Santa Clara County - (800) 662-9886, Alameda County - (800) 523-2222 COUNTY HEALTH DEPARTMENT San Mateo County - (415) 363-4305, Santa Clara County - (408) 885-4200, Alameda County - (510) 567-6800 COUNTY AGRICULTURE COMMISSIONER San Mateo County - (415) 363-4700, Santa Clara County - (408) 299-2171, Alameda County - (510) 670-5232 THE STRUCT URAL PEST CONTROL BOARD - (916) 561-8700 2005 Evergreen Street, Suite 1500 Sacramento, California 95815 PESTICIDES ARE THE PRODUCTS TYLER TERMITE CONTROL USES TO CONTROL THE TARGET PEST LISTED IN YOUR INSPECTION. PESTICIDES MAKE A BETTER LIFE FOR ALL OF US. THEY HELP CONTROL DISEASE CARRIERS THUS PROTECTING YOUR HEALTH AND PROPERTY. WHEN PROPERLY USED, PESTICIDES POSE NO PROBLEM TO MAN OR THE ENVIRONMENT. YOUR TYLER TERMITE CONTROL TECHNICIAN IS A STATE CERTIFIED APPLICATOR AND IS CONSTANTLY BEING UPGRADED BY OUR TRAINING SESSIONS. IF YOU HAVE ANY QUESTIONS PLEASE CALL THE FOLLOWING NUMBER 408.927.6300 " STATE LAW REQUIRES THAT YOU BE GIVEN THE FOLLOWING INFORMATION: CAUTION----- PESTICIDES ARE TOXIC CHEMICALS. STRUCTURAL PEST CONTROL OPERATORS ARE LICENSED AND REGULATED BY THE STRUCTURAL PEST CONTROL BOARD, AND APPLY PESTICIDES WHICH ARE REGISTERED AND APPROVED FOR USE BY CALIFORNIA DEPARTMENT OF FOOD AND AGRICULTURE AND THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY. REGISTRATION IS GRANTED WHEN THE STATE FINDS THAT BASED ON EXISTING SCIENTIFIC EVIDENCE THERE ARE NO APPRECIABLE RISKS IF PROPER USE CONDITIONS ARE FOLLOWED OR THAT THE RISKS ARE OUTWEIGHED BY THE BENEFITS. THE DEGREE OF RISK DEPENDS UPON THE DEGREE OF EXPOSURE, SO EXPOSURE SHOULD BE MINIMIZED." MANUFACTURER ACTIVE INGREDIENTS Equity TC (Dow Elanco) Chlorpyrifos Termidor SC (BASF) F i p r o n i l Invader HPX-20 (Waterbury) Phenyl Methylcarbamate Timbor (U.S. Borax) Boric Oxide This company will reinspect repairs done by others within four months of the original inspection. A charge,if an,can be no greater than the original inspection fee for this inspection.the reinspection must be done within (10) working days of the request.the reinspection is a visual inspection and if inspection of concealed areas is desired,inspection of work in progress will be necessary.any guarantees must be received from the parties performing repiars"
7th Thank you for choosing Tyler Termite Control Inc. If you have any question regarding your inspection report, please call your inspector Mark Rodriguez in the morning hours or late afternoon. Inspectors are out most of the day on inspections.
8th OCCUPANTS CHEMICAL NOTICE Tyler Termite Control Inc. will use pesticide chemical(s) specified below for the control of wood destroying pests or organisms in locations identified in the Structural Pest Control report as indicated above. (1) The pest(s) to be controlled: SUBTERRANEAN TERMITES DRYWOOD TERMITES BEETLES (2) The pesticide(s) proposed to be used and the active ingredient(s). A. VIKANE GAS: Active ingredient:sulfuryl Fluoride. Lethel gas (POISON) B. CHLOROPICRIN: Used as warning agent with Vikane Gas Fumigant. C. INVADER HPX : Actuve ingredients: 2-(Methylethorxy) Phenyl Methlcarbamate D. TERMIDOR SC: Active ingredients: Fipronil:5-amino-1-(2,6-dichloro-4(triflouromethyl)phenyl)-4- ((1,R,S)-(trifluoromethyl)sulfinyl)-1-H-pyrazole-3-carbonitrile...9.1% E. TIMBOR: Active ingredients: (Disodium Octoborate Terahydrate) (3) "State Law requires that you be given the following information: CAUTION-PESTICIDES ARE TOXIC CHEMICALS. Structural Pest Control Companies are registered and regulated by the Structural Pest Control Board, and apply pesticides which are registered and approved for use by the California Department of Pesticide Regulation and the U.S. Enviromental Protection Agency. Registration is granted when the state finds that, based on existing scientific evidence there are no appreciable risks if proper use conditions are followed or that the risks are outweighed by the benefits. The degree of risk depends upon the degree of exposure, so exposure should be minimized." "If within 24 hours following application you experience any of the following symptoms, contact your physician or poison control center and your pest control company immediately." Nausea, vomiting, diarrhea,skin irritation,abdominal cramps, eye irritation, ringing in ears, excitability, difficulty in breathing,lung irritation,respiratory irritation,pulmonary edema,fatigue, chest pain, dizziness, unconsciousness cyanosis, central nerveous system effects. Nausea,vomiting, diarrhea,skin irritaion,nose & throat irritation, sweating,abdominal cramps, headache, eye irritation,excitability, shortness of breath, drowsiness, involuntary shaking, abdominal cramps, irritability, blurred vision. For further information, contact any of the following: Poison Control Center > San Mateo County 800.523.2222, SantaClara County 800.662.9886, Alameda County 800.532.2222 County Health Department> San Mateoa County 415.363.4305, Santa Clara County 408.885.4200, Alameda County 510.567.6800 County Agriculural Commissioner San Mateo County 415.363.4700, Santa Clara County 408.299.2171 Alameda County 510.670.5232 Structural Pest Control Board... 2005 Evergreen Street,Ste 1500 Sacramento, Cailfornia 95815 (916) 561-8700 Persons with respiratory or allergic conditions,or others who may be concerned about their health relative to this chemical treatment, should contact their physician concerning occupancy during and after chemical treatment prior to signing this NOTICE. NO CHEMICAL APPLICATION WILL BE PERFORMED UNTIL SUCH TIME THAT THIS NOTICE IS RETURNED HAVING READ THE INSTRUCTIONS, I, THE UNDERSIGNED,WILL ACCEPT RESPONSIBILITY FOR ALL THE AFFOREMENTIONED. OWNER/OCCUPANT DATE
Page: 1 of 2 Address of Property: Inspection Date: Report #: 19760 Title Co. & Escrow #: WORK AUTHORIZATION CONTRACT 64 Hawthorne Way, San Jose CA 95110 8/18/2015 SECTION 1 SECTION 2 FURTHER INSPECTION 1B T&M 1C $ 250.00 2A $ 1150.00 2B $ 85.00 3A T&M 4B T&M 5A $ 250.00 5E On request 4A Roofer 4C $ 350.00 4D T&M 5B $ 250.00 5C On request 5D $ 250.00 We Authorized the Following We Authorized the Following We Authorized the Following Section 1 Items to be Performed. Section 2 Items to be Performed. Items for Further Inspection. 1B,1C,2A,2B,3A,4B,5A,5E 4A,4C,4D 5B,5C,5D Proposed Cost Section 1: $1,735.00 Proposed Cost Section 2: $350.00 Proposed Cost Fur.Insp.: Total - All Sections: $2,585.00 $500.00 NOTICE TO OWNERS: Under California Mechanics Lien Law any structural pest control company which contracts to do work for you any contractor, subcontractor, laborer, supplier or other person who helps to improve your property but is not paid for his or her work or supplies has a right to enforce a claim against your property. This means that, after a court hearing, your property could be sold by the court officer and the proceeds of the sale used to satisfy the indebtedness. This can happen even if you have paid your structural pest control company in full, if the subcontractor, laborer, or supplier remains unpaid. To preserve their right to file a claim or lien against your property, certain claimants such as contractors or material suppliers are required to provide you with a document entitled "Preliminary Notice." A Preliminary Notice is not a lien against your property. Its purpose is to notify you of persons who may have a right to file a lien against your property if they are not paid. I have read this work authorization contract and WDO inpection report it refers to. SIGNED WORK AUTHORIZATION CONTRACT MUST BE RECEIVED BEFORE WORK WILL BE SCHEDULED. I have read and understand the terms of this work authorization contract and hereby agree to all. APPROVED AND READ BY: DATE ACCEPTED FOR: DATE TYLER TERMITE CONTROL INC.
Page: 2 of 2 Address of Property: Inspection Date: Report #: Title Co. & Escrow #: WORK AUTHORIZATION CONTRACT 64 Hawthorne Way, San Jose CA 95110 8/18/2015 19760 C U S T O M E R I N F O R M A T I O N A deposit will be required for work not billing billed to an open escrow account.the total amount of this contract or balance after deposit is due and payable upon completion of the work listed above unless otherwise specified. Only the work specified in the contract is being done at this time due to owners wishes. ANY WORK PERFORMED AGAINST AN EXISTING TITLE ESCROW WILL BE THE FINANCIAL RESPONSIBILITY OF THE PARTY ORDERING THE INSPECTION REPORT IN THE EVENT OF A CANCELLED TITLE ESCROW. Work completed (LABOR) by operator shall be guaranteed for a period of one year from completion. Toilet plumbing(parts supplied by this firm), showers, floors or any measures for the control of moisture are guaranteed for (30) days only. Fumigations and chemical treatments are guaranteed for one, three or five years as stated on"notice of Work Completed". Only the areas treated are guaranteed. Customer agrees to hold company harmless for any damage which may occur to plant life, wiring, trees, vines, pets, tile roofs, plumbing leaks, or changes beyond control of the company which may occur during the performance of this work. In case of non-payment by owner, reasonable attorney's fees and costs of collection shall be paid by the owner, whether suit be filled or not. A SERVICE CHARGE OF 1-1/2 PERCENT, PER MONTH WILL BE CHARGED ON ALL BALANCES OVER (30) DAYS. THE 1-1/2 PERCENT, PER MONTH, EQUALS 18 PERCENT PER ANNUM ON THE UNPAID BALANCES. Any additional damage found while work is being performed will be supplemented by a report as to additional findings and costs. MOLD DISCLAIMER: There may be health related issues associated with the structural repairs reflected in the inspection report referenced by this Work Authorization Contract. These health issues include but are not limited to the possible release of mold spores during the course of repairs. We are not qualified to and do not render any opinion concerning such health issues or any special precautions. Any questions concerning health issues or any special precautions to be taken prior to or during the course of such repairs should be directed to a Certified Industrial Hygienist before any such repairs are undertaken. All repairs performed by others must be re-inspected by OUR COMPANY before a CERTIFICATION will be issued. We do not guarantee work completed by others. Any repairs completed by others must be guaranteed in writing and submitted to OUR COMPANY before a CERTIFICATION will be issued. This firm does not make statements concerning workmanship. Workmanship is only determinable by those paying for or receiving those services. A re-inspection of specific items on the report or of any other conditions pertaining to this structure can be done at an ADDITIONAL COST PER TRIP. The re-inspection must be done within (4) months of the original inspection. BY EXECUTING THIS WORK AUTHORIZATION CONTRACT, CUSTOMER ACKNOWLEDGES THAT HE OR SHE HAS BEEN ADVISED OF THE FOREGOING AND HAS HAD THE OPPORTUNITY TO CONSULT WITH A QUALIFIED PROFESSIONAL. IF PROPERTY IS VACANT PLEASE PROVIDE COMBO OR LOCATION OF KEYS FOR ACCESS PREFERRED DATE OF SERVICE DATE CLEARANCE IS REQUIRED BY
INVOICE DATE REPORT # ESCROW # PROPERTY LOCATION 08/21/2015 19760 64 Hawthorne Way, San Jose CA 95110 TO: Teresa P. Turco Revocable Trust 64 Hawthorne Way San Jose, CA 95110 023894 08/18/2015 Payment -$300.00 023893 08/18/2015 Inspection $300.00 Balance Due: $0.00 RETAIN THIS COPY FOR YOUR RECORDS DUE AND PAYABLE UPON RECEIPT 1.5% per month charged on all past due accounts. This is an annual percentage rate of 18% (Interest charged persuant to the Robinson-Patman Act) NOTICE: "Under the Mechanics'Lien law, any contractor, subcontractor, laborer, supplier or other person who helps to improve your property but is not paid for his work or supplies, has the right to enforce a claim against your property. This means that after a court hearing, your property could be sold by a court officer and the proceeds of the sale used to satisfy the indebtedness. This can happen even if you have paid your own contractor in full, if the subcontractor, laborer, or supplier remains unpaid." THANK YOU FOR YOUR BUSINESS