Construction Loans and Mechanic’s Liens: “The First Rock Rule”

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If you build it, they will come … but first the escrow officer needs to get the construction loan closed. Construction and construction loans create challenges for escrow personnel that must be managed effectively in order to control risk and preserve the lender’s lien priority against mechanic’s lien claimants. In Texas, this risk is often wholly borne by the lender directly and the escrow company indirectly. The title policy, with P-8 exceptions, will not cover mechanic’s lien issues. As such, escrow personnel and title examiners are well-advised to become familiar with the principles related to construction loan closings, because there may not be an underwriter available to respond to any claims which may arise after closing. This course will provide information, specifically, on construction loan closings and, in general, on mechanic’s liens and construction.

This webinar is approved for 1 hour of CE credit for the state of Texas. You must be a NATIC agent to receive credit.

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