Clearing Construction Liens From Title

Construction work on a property gives contractors the legal right to file a lien on title that has priority over a mortgage. It is our goal to help clear these liens from the title as quickly as possible to ensure you and your borrowers have a first-class closing experience with Advocus Title. Please see information on how construction work can raise a lien and be cleared from title below:

• Construction on a property, including work that has already been completed as well as pre-work planning, can result in a lien in favor of the contractor/sub-contractors to protect against non-payment for their work. These liens may or may not be recorded yet but will still need to be cleared prior to closing.
• If construction activity is found during the title search and examination process, Advocus Title’s clearance team will reach out to the POD requesting documentation showing that all contractors/sub-contractors have been paid in full for all work performed through the funding date.
• The required documentation may vary slightly state-to-state but commonly includes the following three items:
  • A statement from the general contractor showing a list of all the parties that performed work or provided material on the property, the amount of money owed, and the amount of money paid.
  • A lien waiver from each of the parties on the general contractor’s statement.
  • A personal undertaking signed by the borrower indicating they take responsibility for paying any contractors/sub-contractors that may come forward claiming payment in the future for work performed.

At Advocus Title, we are committed to providing you and your borrower with a best-in-class speed to close and seamless closing experience. If you have any questions about construction liens,

feel free to reach out to the Advocus Title customer support team via form, email, or phone.