Professional Title Services, Inc. has a full service New Construction Department whose focus is to meet the special needs of developers and builders. We work closely with developers, builders, and construction lenders through the development and construction phases. This relationship has provided us the opportunity to identify and customize our services to fit your specific needs.

Professional Title Services, Inc. will open an escrow account for the full amount needed to complete the project. Instead of paying all of the money out at the closing, the money is paid out periodically, as needed. These periodic payments, called draws, are a series of checkpoints for the lender and borrowers to monitor the construction progress.  Before the construction begins, the builder gives Professional Title Services, Inc. a cost breakdown of the project—sort of a road map for the title company to follow. The cost of work is listed by categories, such as excavation, plumbing, and rough finish carpentry. Each sub-contractor and supplier is listed, along with the amount that each will be paid.  At specific points in the project, the builder and the borrower give a draw request to the lender and to the title company. This lists the money needed for work completed to that point. The title company orders an inspection of the property to determine if the work shown on the draw request actually appears to have been completed. Assuming that the inspector agrees that the project is on track, the title company then processes the draw request and asks the lender for the draw money. The lender forwards the requested funds to the title company. The title company pays the general contractor, sub-contractors and material suppliers the amounts specified in the draw request. As each party is paid, they give the title company a lien waiver. Until a contractor or supplier is paid for their work and materials, they have a legal right to file a lien against the property. By giving the lien waiver, the contractor acknowledges that they will not file a lien for the work shown on the waiver. The title company then insures the lender that the draws have been paid to the parties shown on the request.

When the project is completed, the general contractor gives the title company an affidavit of completion and final lien waivers from all sub-contractors and material suppliers. The final inspection is performed to determine that all work is finished. In most communities, an occupancy permit is issued by the local building authorities. When all this is done, the lender will pay out the balance of the escrow monies, and the homeowner will move in and begin decorating.