Construction Escrow
What types of construction escrow services does Freedom Title offer?
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CONSTRUCTION ESCROW SERVICES
There are three basic types of construction escrow agreements:
1. OWNER’S ESCROW:
Are established for the purpose of examining waivers
and disbursing owners funds, it does not require title insurance. These escrows are normally established when an owner already owns the property and wants to make improvements on the land and desire a third party to make the disbursements and review the waivers and affidavits.
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2. CONSTRUCTION LOAN ESCROW:
Are established for the purpose of insuring a lender that their recorded mortgage (lien) will be first and prior to any other lien on the property during the course of the construction.
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3. OWNERS ESCROW WITH TITLE INSURANCE:
This escrow is a cross between the Owners Escrow and the Construction Loan Escrow, but here we are insuring the owner over mechanic lien claim instead of a lender.
4. OUTSIDE INTERIM AGREEMENT:
This is where we insure the lender during the course of
the construction, but they are disbursing the funds
directly to the contractor.