By Trinity Team

As Benjamin Franklin so notably once said, “Time is money,” and no profession may understand this concept more than a construction lender. New home construction possesses numerous potential exposures and unique pitfalls -- all severely impact the lender, and one of these hurdles lenders must face before proceeding with construction is conducting the title search.

While title searches are a routine step in the construction lending process, they typically unearth issues of property ownership or hindrances in the transference of deeds. If a builder fails to pay subcontractors or suppliers, a lien may be placed on the property, creating legal issues and preventing progress. Because the duration of a construction loan typically lasts 12 months or longer, lenders’ investments last for an extended period of time, so obviously they want to ensure the property has a clear title to proceed with the construction.

While title ownership and property statuses are available through public records’ searches, this process can require a large amount of time and effort when completing the search. Conducting the search entails examining countless documents, including deeds, contracts and other recorded papers in the county clerk’s office, registry of deeds, recorder’s office, local courthouse or any other number of offices in your county. Indeed, the execution of a title search can take a lender up to two weeks, pulling them away from other core business dealings and multiple title reports may be required at one time.

Using a third-party company to complete the title report can significantly benefit a lender, saving time and ultimately increase the bottom line. In addition to lenders saving themselves the expense of requiring full time employees to complete the task, they also provide dedicated on the core business efforts and activities.

If you do decide to use a third-party company for your title searches, consider these questions before going forward:

   - How long has the company been in business? Proven experience counts.

   - What kind of service will you receive? In the case that anything ever goes awry, you’ll want to ensure the company’s word stands and you are given the attention needed and deserved.

If you ever require title report services, please consider Trinity Loan Administration as an option. Report options include lien detail, vesting interests, conveyances, descriptions, tax information and more. With nearly 18 years’ experience, our team commits to disclose critical information on your properties and investments, ultimately with the goal of providing you the confidences, peace of mind and efficiencies in your future projects. Contact us to learn more.