- Part 4
Mechanics Lien Claims, how we work to prevent them and give
you, our customers, peace of mind.
“Mechanics Lien” is defined as a lien created by statute for the purpose of
securing priority of payment for the price or value of work performed, or
materials furnished in construction or repair of improvements to land,
which attaches to the land as well as the improvements. So, as an example,
you hire a contractor to build you a home on your land or to repair, rebuild,
or add on to an existing structure, that contractor has lien rights on your
property to secure his ability to get paid. The contractor has 4 months to
file his lien in the recorders office after his last day on the job. He
then has 2 years to perfect his lien and can in fact foreclose and take
your property through the proper legal processes.
what does Benchmark Title do to prevent that from happening? When we
first open the order for a title relating to a construction loan we require
the contractor and owner to give us a job cost breakdown listing all the
functions and the cost for each of the work types to be done and the
materials to be furnished. All parties also must sign Construction Escrow
Agreements indicating the responsibilities of each of the parties, as well
as the payment processes and of course what the title company insures.
the request of a “Draw” or disbursement of funds paying the various
contractors and suppliers we will have an updated title search done,
request an inspection of the property to be certain that the work that we
are asking to pay for is in fact completed, or to what degree is that done,
and then follow up with a request for funds from the construction lender.
as a practice does not pay only to the general contractor; we pay each
subcontractor and supplier individually. As the parties are paid for their
service and material we will receive from each of them a “Mechanics Lien
Waiver” which removes the contractor or suppliers lien rights up to the
amount paid and the date of payment in the event the work is not as yet
complete, sometimes known as a “Partial Waiver”.
process is followed with each draw request with the purpose of minimizing
the potential for a mechanics lien claim being filed against your property.
This also protects the contractors and suppliers in that they know they
will be paid in a timely manner, it protects the
owner so he will not have to deal with any later issues, and it also
protects the title company by minimizing its need to dispute or pay any
mechanics lien claims.
you have any questions regarding this issue please feel free to contact
John Howe, President or Doreen Miller our General Council at Benchmark
questions can be directed to Benchmark Title at 618-239-3750. Please feel
free to call or email:
Serving you from three convenient locations:
Shiloh, IL 62221
Escrow Fax: 618-239-3707
Title Fax: 618-239-3757
Fax Orders: 618-310-1589
President: John Howe
Columbia, IL 62236
4215 S. State Rte 159
Manager: Sara Sowell
Benchmark Title is celebrating our 10 Year
With 10 years of the highest quality of service, &
the most accurate product in the industry, we would like to say
Thank You for making us
Dates to Remember
October 4 - Please wish our employee Debbie Jetter
a HAPPY BIRTHDAY!!
October 7 - GGAR Board of Directors Installation Luncheon and
Ceremony in honor of incoming Chairman of the Board, Doug Hartmann Jr. at Gateway Center,
Reception and Check-in at 11 am, Buffet Luncheon 12 pm, ceremony after
lunch. $20 per person. Please RSVP to the Association office by
October 11 -
Please wish our employee Bethany Bond a HAPPY BIRTHDAY!!
7 - HBA Auction from 6 pm - 10 pm at Far Oaks in Caseyville, IL
Did you say FREE?
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for more information or call April
Tolan, our SureClose Specialist, at
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money today. We'll even give you and your clients a free CD at closing
containing copies of their closing documents.
can place your next title order now by clicking here.
Give me my policy!
you know that lenders and home buyers now receive their title policies at
the closing table? Contact Michelle
Null, VP Escrow Operations, to learn more about this exciting new
and homeowners will want to hear about our fantastically low new refinance
rates. Contact us today for a quote!
After your closing please call our customer feedback line at (618)310-1307
ext. 26 and leave your comments. We will send you a token of our
appreciation for your time.