Residential Construction Documents
Typical Construction Loan Documents | Download
Construction loan documents vary from state to state so it is important to use documents that are specific to the state where the construction is being done. The most efficient way to get the correct legal forms is to purchase them from a company that sells the forms and guarantees their correctness.
Construction loan documents are meant to protect the owner by assuring that all funds are properly accounted for. Each participant in the construction process has a different interest and so the construction loan documents are designed to spell out how each participants interests will be handled.
Typically, the lender has a fiduciary responsibility to the borrower to assure that loan funds are properly disbursed. The lender must also protect its interests at the same time and thus a series of construction loan documents are used towards this end.
The contractor wants to get as much money as possible as the construction progresses. Since the loan fund is based on the cost to build and an appraisal of the value of the house as completed, the lender will take care to assure that each phase of construction is completed before additional funds are disbursed.
This is done with a construction inspection that notes what has been completed. During the course of construction of house, there will be from five to eight construction progress inspections, depending on the size and cost of the house.
Construction loan documents begin with the loan documents which will include the note, the construction mortgage, a construction loan agreement, a draw schedule, and a notice of commencement.
The construction loan agreement is a three party document and represents what is expected of the lender, the builder and the owner.
Several forms of contracts are available for homeowners to pay the contractor for home improvements. It depends on your situation as to making the best choice.... Read more
Construction forms and software for use during the residential construction process.... Read more
This agreement specifies how the loan will be disbursed by the lender and how the builder and borrower will handle the disbursements. It is signed by the builder and the borrower.... Read more
A Claim of Lien is a validly recorded claim against the property for payment of the unpaid balance due... Read more
The Disbursement of Funds document outlines the procedures to be followed for residential construction loan draw requests.... Read more
Construction loan interest rates adjust during construction to reflect changes in prime rate. This rider describes how those adjustments are made based on prime rate.... Read more
A partial release of lien is required for any subcontractor who has filed a "Notice to Owner" during the course of construction.... Read more
This form is used in some states as notice to sub-contractors of commencement of work on the residential construction project and the name of the contractor and owners.... Read more
Sample of Notice of Contest of Lien form for construction. A contest of lien reduces the amount of time a contractor or subcontractor has to file suit to 60 days.... Read more
Once you receive a Notice to Owner from a sub contractor, your contractor must provide your lender with a "Release of Lien" before construction funds will be disbursed.... Read more
Low cost, easy to use construction document templates developed for builders and contractors.... Read more
Mortgage lenders have internal descriptions of each type of loan they offer. These descriptions offer intense detail of the actual loan product.... Read more
Construction/permanent mortgage loans can be very complicated and this sample disclosure is designed to help you through the details. It will give you a good idea of what to expect.... Read more
The final release of lien is used by the builder to certify to the owner that all sub contractors have been paid and there is no outstanding liens or claim of liens.... Read more
Notice of Contest of Lien is a legal document by which an Owner can shorten the statutory one year time limit a lienor has to file suit to sixty (60) days.... Read more
The residential construction loan draw schedule shows how the construction loan funds will be disbursed based on work completed.... Read more
Construction loan disbursements are designed to assure adequate funds to complete the construction of the house.... Read more
Construction loan specifications detail the materials to be used in the construction of a house.... Read more
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