TITLE EXAMINATION
As an ITG participating attorney your title examination obligation includes reviewing affirmative disclosures on ITG Composite Mortgage Affidavits (“CMA”) to ascertain whether the disclosure impairs the titleholders’ interest or the priority of the guaranteed mortgage and to instruct the closing agent what clearance measures are required if necessary.
ITG provides the following guidance when the property is Owner-Builder Construction as defined by Iowa Code § 572.1 and there is an affirmative answer to CMA question 1 which asks, “Has any labor, material, or equipment been furnished on the Property in the last 90 days?”.
Please be advised that a search of the Mechanic’s Notice and Lien Registry alone is insufficient as the clearance measure of an affirmative disclosure to Owner/Seller CMA question 1 because certain scenarios exempt filers from the regular preliminary notice postings. If exempt, contractors are not required to post a commencement of work or preliminary notice to have the ability to post a mechanic’s lien. Therefore, to confirm that there will be no mechanic’s liens filed that will impair the titleholders’ interest or the priority of the guaranteed mortgage, final lien waivers must be obtained from the general contractor and all subcontractors that have furnished labor, materials, or equipment on the property in the last 90 days.
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