Chicago Title NCS Chicago: SYFCREC 2021

Surviving Your First Commercial Real Estate Closing I Mechanic’s Lien Risks & Construction Escrow Construction Loan Escrow Agreements o Considerations when opening an escrow: o Who are the parties working on the project? o Is there a General Contractor, or is the Owner entering into all contracts? o What is being built? o Is the project in balance? o Who will be paid (subcontractors or GC directly)? 17 Surviving Your First Commercial Real Estate Closing I Mechanic’s Lien Risks & Construction Escrow Preconditions to Disbursement o Owner provides: o Owner’s Sworn Statement o General Contractor’s Sworn Statement o Funds o Approval of the draw o Lender provides: o Approval of the sworn statements o Approval of title if any new exceptions are disclosed 18 17 18 82