Historically, Texas’ mechanics lien law has been the largest claims loss issue for Texas title insurance companies. In this discussion of mechanics lien law fundamentals for escrow officers, we’ll explore the differences between Constitutional and statutory mechanics liens, different filing periods for claims against residential and non-residential property, information a mechanics lien affidavit should contain, filing dates, inception dates, limitations periods, the inchoate nature of such liens and how those issues affect title insurance underwriting decisions. We’ll also examine the purposes of Procedural P-8—both the mechanics liens and pending disbursement clauses—and how to down date title insurance policies insuring a construction project using the Form T-3 while protecting the underwriter from possible mechanics lien claims.
Richard Worsham, VP/ Texas Underwriting Counsel, Westcor Land Title Insurance Company
Member: $50 | Non Member: $65
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