Construction Loan Funding and Title Insurance: Best Practices in Disbursement and Documentation
Drafting Effective Future Advance, Budgeting, and Draw Provisions; Lien Waivers, Title Updates and Endorsements
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE course will examine the mechanics of construction loan funding and the interplay of construction advances with title insurance through the life of a construction loan. The panel will discuss drafting, budgeting, and construction-draw provisions, as well as best practices for preserving the lender's lien priority and title insurance protection for future advances.
- Construction loans
- Budgeting: adjustments, retainage
- Draw procedures
- Mechanics liens: lien waivers, lien subordinations
- Title coverage and construction endorsements
- Future advance clause, title updates
- Survey coverage: new 2021 ALTA/NSPS Standards
- Owner's policy
The panel will review these and other relevant matters:
- What are the issues to consider in drafting construction draw provisions?
- How do construction draw provisions address variations from the construction budget?
- How does title insurance for a construction loan differ from title insurance for a permanent loan?
- What is the purpose of lien waivers or subordinations required with construction draws, and what are the standard forms?
Jeffrey R. Escobar
Mr. Escobar focuses his practice on advising lenders, sponsors, investors, project companies, public and private... | Read More
Mr. Escobar focuses his practice on advising lenders, sponsors, investors, project companies, public and private utility companies, private equity funds, joint ventures, institutional owners and closely held horizontal and vertical project owners and developers across the U.S. and throughout the Americas. He advises them on their deployment of capital on the debt and tax equity project financing, M&A, development and sale-leaseback of complex and large-scale utility grade renewable (solar, onshore and offshore wind), geothermal and alternative energy (including biofuel and emerging energy) projects, as well as large infrastructure, transportation and private-public development projects.Close
Megan H. Shirk
Ms. Shirk’s practice includes commercial real estate lending, with an emphasis on federal and state low-income... | Read More
Ms. Shirk’s practice includes commercial real estate lending, with an emphasis on federal and state low-income housing tax credit finance, historic tax credit finance, equity bridge lending and tax-exempt bond financing. Her practice also includes general real estate matters relating to the acquisition, development, leasing, and sale of real estate, including low-income housing tax credit apartment complexes. Ms. Shirk has assisted financial institutions in closing complex construction and permanent loan transactions and equity investments involving multiple layers of financing and grant sources. She has represented financial institutions in conventional commercial real estate lending transactions of all types, including real estate loan workouts and restructurings.Close