Are you working with a seller that has done, or is doing, repair or rehab work to the property they are selling?
If so, your seller should be prepared to provide paid receipts and lien waivers for the work they have completed.
Why? Because there are mechanics lien laws in place that protect the rights of contractors and material suppliers for receiving full payment for the work/materials they have provided. In order to issue a title insurance policy with mechanics lien coverage to the buyer at closing, we need to be certain that the contractors/material suppliers have been paid in full so they cannot place a lien on the property that would affect the buyer’s title.
When Investors Title Company is providing title insurance to the buyer, we require paid receipts and lien waivers for any work that has been completed on the property in the last 6 months, at a cost of $2500.00 or greater. Below is a copy of an approved lien waiver for closing purposes:
If your seller is rehabbing a non-owner occupied properties, we recommend that they file the NOTICE OF INTENDED SALE: