Construction Escrow Services are used when a lender is financing a construction project and deposits escrow funds with a title company. The title company oversees the disbursement of all construction payouts, which are made to the general contractor, subcontractors, and material suppliers as work is completed. Having the title company administer this process ensures that no mechanic's liens are recorded against the real estate as a result of the work performed on the property. ATG usually does not administrator a construction escrow when there is no lender involved.
Each time a general contractor requests a payment or "draw," the general contractor must submit a Sworn Statement listing all the subcontractors entitled to be paid from that draw. Each subcontractor and material supplier listed on the Sworn Statement must provide a lien waiver. Prior to authorizing a payment, ATG verifies all amounts to make sure there are sufficient funds to meet the obligations set forth on the Sworn Statements and that the loan is in balance. In addition, ATG reviews all documentation and conducts a later date search to make sure title is clear and no mechanic’s liens have been recorded. These Construction Escrow Services protect both the lender and the owner during the construction of the project to make sure that payment is made for completed work, and that persons and entities supplying materials or labor to the project have waived or released their statutory lien rights on the property.
Sheila Buckley is the Construction Escrow Administrator for ATG. She has many years of experience in the title industry and has worked closely with builders, lenders, and attorneys in construction disbursement. Sheila has handled projects ranging from small single-family homes and rehabs to large-scale commercial projects.
Questions? Contact Sheila Buckley directly, or contact the department: Constructionescrow@atgf.com | Phone: 800.252.0402 | Fax: 312.372.0464.
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[Last update: 10-25-21]
