If the property is a 3-4 unit dwelling or owner-builder construction, ITG requires a search of the MNLR and clearance of all postings as provided above. However, please be advised that this process alone is insufficient for 3-4 unit dwellings or owner-builder construction because 3-4 unit dwellings and owner-builder construction are exempt from certain preliminary notice postings.
If exempt, the contractors(s) are not required to post a commencement of work or preliminary notice, making it impossible to determine if labor, equipment, or materials have been furnished by simply performing a search of the MNLR. The exemption does not prohibit the contractor(s) from later filing a mechanic’s lien that may take priority over the new owner’s interest or the recently filed guaranteed mortgage.
Therefore, the only way to confirm that there will be no later filed liens is to either:
- Obtain final lien waivers from the general contractor and all subcontractors that have furnished labor, materials or equipment on the property in the last 90 days; OR
- Confirm with the general contractor, owner-builder, and subcontractors that the date on which the last of the material was furnished or the last of the labor was performed was over 90 days ago.
Accordingly, ITG has developed a new affidavit entitled “3-4 Unit Dwelling or Owner-Builder Construction Receipt of Final Lien Waivers Confirmation” to be completed and signed by either the examining attorney, closer or field issuer on all new construction transactions involving 3–4-unit dwellings or owner-builder construction in which ITG residential coverage is contemplated.
Both the “MNLR Search Affidavit” and the “3-4 Unit Dwelling or Owner-Builder Construction Receipt of Final Lien Waivers Confirmation” can be found in the Residential Forms section of the
ITG Resources page.
Please contact an ITG underwriter with any questions.