Concerns for your construction deal:
Construction loan funds designated for your project go to other construction deals
Payments to sub-contractors are not made
Payments to material suppliers are not made
Mechanics lien are filed exposing your property to potential foreclosure
How Nationwide Construction Disbursing handles these problems for you:
NCD has disbursed over $5.0 Billion in construction funds for over 90 financial institutions
All payments for construction go through NCD
Payments are only made for completed and invoiced work
NCD performs on-site inspections for all completed work
All invoices are reviewed for labor and material costs
NCD collects lien waivers and material release for all payments
NCD provides the lender and the owner with mechanics lien coverage through the title underwriter for all construction funds paid through NCD
NCD offers online information – like online banking – for your construction project – including on-site inspection pictures
Additional Information about Construction Disbursing:
Title Partners Agency, LLC offers seamless Construction Disbursing Services for all of our lending and construction partners through our sister company Nationwide Construction Disbursing, LLC. NCD offers our lending and construction partners the complete range of services including veteran underwriters, title examiners, escrow closers and attorneys. Our experienced disbursing personnel have disbursed and provided mechanic lien coverage on over $3.5 Billion of commercial and residential construction funds.
Nationwide Construction Disbursing inspects each of the projects upon which it disburses. For each inspection a report is prepared detailing category completion percentages and is supplemented by our dated digital inspection pictures. Our reports and our pictures are uploaded into our online disbursing software, Disbursa, so that all construction partners have access to this important information across all of their devices 24/7.
To view a brief demo of our disbursing software (Disbursa) and its capabilities please click or visit here: https://www.youtube.com/watch?v=y75Zi5fZob8
To Learn More about Nationwide Construction Disbursing
What is the most important function of a disbursing company?
What is the most important factor in selecting a disbursing company?
Why do lenders require construction disbursing?
What is a mechanic lien and why are they important?
They are important because they may become a lawsuit commenced by the unpaid lienor to force the sale of the property so that the lien can be satisfied out of the proceeds of the sale.
Who can file mechanic liens?
Material suppliers to subcontractors or subs hired by sub-contractors.
What do underwriters provide in a construction disbursing process?
Our experienced construction disbursing officers continually provide a third-party review of each transaction to enable mechanic lien coverage and protect your deed of trust. Each transaction is available for review 24/7 on our online disbursing software Disbursa.
What is loan-to-value?
It is one of the most valuable parts of our NCD services because our procedures only permit payment for invoices for completed work. We only pay for owner approved, completed and invoiced work. Our on-site inspections must verify that those items for which contractors and sub-contractors are invoicing represent completed work.
If work is not complete – or material is not at the jobsite – those items remain unpaid, and loan to value is not compromised. This loan to value monitoring is central to providing mechanic lien coverage that helps protect every deed of trust.
How do remote construction efforts work?
To meet these challenges our service includes on-site construction inspection services that include a brief narrative of construction organization and progress, pictures of construction progress, and completion percentages by cost category. We provide each of these inspection details to our clients in our proprietary password-protected online disbursing software Disbursa. Details provided online include funds requested; funds received, checks cut by category, the dates when checks were released, category balances, inspection pictures, inspection completion percentages by cost category, and four printable report formats.
Our experienced online construction disbursing helps provide loan to value monitoring, mechanic lien coverage, mechanic lien risk management, all to help protect your deed of trust.
Depending upon your needs our relationships with nationwide construction services can help provide you with an additional range of construction concierge services like:
- Architectural Reviews
- On-Site Construction Reviews
- 24-hour online construction/ jobsite surveillance cameras
What is the difference between a conditional lien waiver and an unconditional lien waiver?
Conditional lien waivers are the types of lien waivers we collect at NCD when we pay contractors, sub-contractors, and material suppliers directly. When I say paying “directly” it means that NCD is paying construction invoices with bank loan funds or owner equity funds on NCD checks.
A conditional lien waiver becomes effective only when the funds are deposited into the account of the payee – it is not effective until then. That is the “condition” – and allows the payee the security of knowing that only once the funds are in their account does it become effective.
An unconditional lien waiver is a full release of lien rights for a specific payment, which becomes effective immediately upon execution or signing.
We require this type of lien waiver for any reimbursement or as a proof of payment made by anyone else in the construction process. If a foundation company has paid for concrete and is seeking reimbursement for those funds – we must have an unconditional lien waiver from the concrete supplier for that amount – with the appropriate invoice.