Mechanics' and Materialmen's Liens

Mechanics’ and Materialmen’s Liens: Underwriting Guidelines

The procedures for removing the mechanics’ liens exception are outlined below, but these procedures must not just be followed by rote. The agent must apply common sense to each transaction before removing the exception. Different rules apply for different situations, such as:


      When the property is unimproved or has been improved for some time.

      When construction on the property is imminent.

      When construction has recently been completed.

      Construction begun before recording.

      Owner’s policies.


Property Unimproved or Improved for Some Time

Property Unimproved But Construction Imminent

Construction Recently Completed

Construction Begun Before Recording

Special Rules for Owner's Policies