Construction Loan Disbursement

Our specialized team partners with you to ensure your draws are processed accurately, efficiently and on-time.

Ensure your draws are processed accurately, efficiently, and professionally with our expert construction disbursement team.

Basic Steps of a Draw Request

Draw request is submitted to Land Title

Completed within 48 hours

Land Title will conduct a physical inspection of the property and prepare an inspection report.
Land Title also conducts a title update to search for any mechanic’s liens recorded since the last draw request.

Documents are submitted to the lender

Delivered to lender within 24 hours of the title policy update

If the title search is clear, an Advance of Funds Request letter and the inspection report are sent to the lender.

Approved proceeds are advanced

Based upon lender’s time frame

The lender will send approved funding to Land Title for the draw request.

Funds are disbursed

Disbursement within 24 hours of funding

Land Title disburses the funds according to the draw request and the lender’s instructions.

Mechanic’s Lien Endorsement is issued

24 hours after lender funding

Land Title will issue the Mechanic’s Lien Endorsement, or 101 Endorsement, finalizing the draw request process.

Endorsements

101 Endorsement

Full-Service Features

The 101 Endorsement is a service provided where Land Title handles the draw requests, and inspections, provides lien waiver protection to the lender, and title updates with each draw. It is a full-service feature in that Land Title cuts checks directly to sub-contractors and suppliers according to the draw requests submitted by the general contractor and borrower. Each submission must be approved by the lender.

ALTA 32/33 Endorsement

Flexible Payment

The ALTA 32/33 Endorsement is very similar to the 101 endorsement except this allows flexibility in how
the funds are disbursed. The General Contractor could receive one large amount for them to be
reimbursed for payments made to sub-contractors and suppliers or the lender could be allowed to
disburse. In return, lien waivers must be provided for those disbursements before the next draw
request. Underwriter approval is required and determined case by case.

101.5 Endorsement

Mechanic’s Lein Protection

The 101.5 Endorsement provides mechanic lien protection for construction work done prior to the loan
closing. Typically this coverage is allowed up to the foundation install stage of a project or 15%-20% of
the total budget. These are always case-by-case scenarios.

122 Endorsement With and Without Disbursing

Lender Title Updates Only

The 122 Endorsement provides lenders title updates only. This endorsement is used in cases where the lender is handling all of the disbursing including inspections. No lien protection is offered through the 122 Endorsement.

The 122 with Disbursing includes the title updates, inspections and disbursing the funds on behalf of the
lender. More flexibility is given in how the checks are cut due to their not being any mechanic lien
protection with this endorsement.