Issuing and Insuring construction loans in Michigan presents a number of challenges to lenders and title insurance companies. Michigan law allows for lien claimants to have priority over loan funds disbursed subsequent to the recorded mortgage. Said funds are usually disbursed over several draws and months.
Transnation Title Agency will undertake several steps to protect lenders.
1) Updating title at the Register of Deeds to ensure that liens have not been filed against the insured property.
2) Reviewing sworn statement(s) from the builder to determine the parties who have provided labor and/or product.
3) Examining Waiver of Liens to ensure that potential claimants have been paid.
4) Review Notice of Commencement and Notice of Furnishing(s).
5) Review Indemnity Agreements(if required).
Please contact your local Transnation Title Agency office for further information or assistance. We will make every effort to process draw requests in a timely manner.
We are pleased to provide you with a New Construction Form Package that includes the following:
- Notice of Commencement
- Notice of Furnishing
- Indemnity Agreement
- Designee Affidavit
- Sworn Statement
- Waivers of lien: