Chicago Title NCS Chicago: SYFCREC 2021

Surviving Your First Commercial Real Estate Closing I Mechanic’s Lien Risks & Construction Escrow o AIA G702/703 vs. General Contractor’s Sworn Statement o The AIA G702/703 provides budget categories but does not list the name and address of vendors. o Does not provide balance due to each lower tier o AIA statement certifies that the work covered by pay application has been completed in accordance with the contract, but it is not a statement under oath that the document is a full and complete list of the names and addresses of all parties and the balance due or to become due to each 29 Construction Escrow Documentation Surviving Your First Commercial Real Estate Closing I Mechanic’s Lien Risks & Construction Escrow o Title Company lien waiver form is two documents in one: o Top portion is the lien waiver form o Lien waiver may be a partial or final waiver o Bottom portion is a contractor’s affidavit, which discloses any lower tiers o Affidavit certifies that it is a full and complete list of the names and addresses of all parties and balance due or to become due to each o Also includes columns for kind of work, amount previously paid, and the amount of this payment 30 Construction Escrow Documentation 29 30 88