IMPORTANT NOTICE REGARDING A CONSTRUCTION
LOAN!!
If you haven't already broken ground it is better to wait until after your
loan closes escrow!
BROKEN PRIORITY is established once ANY work commences on your property.
This would include work done by you, even though it may not generate a bill of
an amount due. Following is a list of some of the actions that have established
a broken priority. It is very important that you DO NOT do any of the following
until after your loan closes escrow. If you do break ground (any of the following)
it may cause the title company not to issue the title insurance that we need
in order to fund a loan for you!
- Prune trees
- Do any grading
- Do any clearing
- Drive
in stakes
- Move rocks
- Park equipment on the property
- Put in a well
- Put in septic
- Survey
- String
out foundation
- Mark the ground in any way
- Break ground, even with a shovel!
- Have
material delivered... gravel, etc.
Anything done on the property could establish
broken priority, the only safe bet is to DO NOTHING TO THE PROPERTY, PUT NOTHING
ON THE PROPERTY. THE TITLE COMPANY WILL INSPECT YOUR PROPERTY AN HOUR OR SO BEFORE
YOUR LOAN ESCROW CLOSES.
the title company determines that a broken priority, and you
will then have to qualify for your title insurance, that is submit an
asset and liability statement, show proof of income, etc. To avoid this, do not
break ground before your construction loan closes escrow! |
