New Construction
When closing a new construction transaction, it is important to ensure that the lender will in fact be in first lien position, and no mechanic’s liens have been or may be filed against the property. The procedures vary depending on when the last labor and/or materials were supplied to the property and whether the property qualifies as an owner-occupied dwelling.
NEW CONSTRUCTION - NO WORK DONE WITHIN 90 DAYS OF CLOSING
- Composite Mortgage Affidavit executed by buyer and seller
NEW CONSTRUCTION - WORK DONE WITHIN 90 DAYS OF CLOSING
- Composite Mortgage Affidavit executed by buyer and seller
- General Contractor Sworn Statement
- Lien waivers for all work performed and materials provided within 90 days of closing
OWNER-OCCUPIED DWELLINGS
Section 572.14 of the Iowa Code provides protection to owner-occupants, as defined in Section 572.1(5), by cutting off a subcontractor’s right to enforce a mechanic lien if the subcontractor does not provide a notice to the owner-occupant prior to the point at which the owner-occupant pays the principal contractor in full. For transactions in which the owner-occupant (not the builder or general contractor) is in title throughout the entire construction process, Title Guaranty will only require lien waivers from any subcontractors or material providers who have given notice to the owner.
- Composite Mortgage Affidavit
- Owner-occupied Affidavit
OWNER'S COVERAGE
- Mechanic lien coverage is available to buyers via the Standard Exception Waiver Endorsement. The fee for this endorsement is $15.
TITLE GUARANTY BUILDER LIST
These builders have reached an agreement with Title Guaranty regarding the collection of lien waivers. If you are closing a transaction where one of the listed builders is the general contractor, please contact Title Guaranty for details on what will be required in order to obtain mechanic lien coverage.
FORMS
- Composite Mortgage Affidavit
- General Contractor Affidavit
- Partial Lien Waiver
- Final Lien Waiver
- General Contractor Sworn Statement
FOR MORE INFORMATION, CONTACT:
Bob Skelley
515.725.4984
Matt White
515.725.4930
