Construction lending is so robust at the moment that it seems as if it were 2007 again. This webinar will provide you with the practical methods to manage some of the principal risks of construction lending, including lack of lien priority, stop notices, fund diversion and the biggest “traps” in title insurance policies. Two recent cases illustrate the “traps” in title insurance coverage. In B&B Syndication v. First American Title Ins. Co., the title insurer was able to convince a Court that the construction lender was not covered for mechanic’s liens because of Exclusion 3 (a), since it had failed to advance sufficient loan funds to pay all of the construction costs and had thereby “created” the mechanic’s lien. This cost the lender its loan balance of $61,000,000.00. In Stewart Title Ins. Co. v. Credit Swiss, the title insurer attempted to convince a Court that the construction lender was not covered for mechanic’s liens because of Exclusion 3 (b), since it had not provided a copy of its appraisal to the title insurer before the policy was issued.
Join us as Buchalter Nemer provides you with some practical “tools” to manage your construction loan risks and exposes the principal hidden “traps” in your title insurance coverage.
