Archive for July, 2011

New Mechanics Lien Law Changes Will Keep Construction Loans Flowing in Utah, by Inwest Title, a Utah Title Company

Friday, July 29th, 2011

In the 2011 Utah Legislative Session one of the hottest topics was House Bill 260 Mechanics’ Lien Revisions.  This new bill was achieved through extensive negotiations between Legislators and groups representing Lenders, Title Insurers, Builders, Contractors, and Subcontractors, and as a result makes significant improvements to our existing laws when the changes go into effect August 1, 2011.

The Problem

Under the old system the simple act of dropping off lumber, clearing an access road, putting in a sewer system to obtain a building permit, or providing any visible work or materials triggered mechanics lien problems with a property.   This early start before the loan was in place meant all contractors would be in a superior position to the Construction Lender, putting that Lender’s security interest in the project in danger of being foreclosed.

While most of these early starts were unintended, once priority is broken it is irreparably broken, as there was no mechanism available under the law to restore priority.  Lenders have always looked to Title Insurers for insurance coverage to protect against this danger, however due to massive losses underwriting restrictions were severely tightened for broken priority and mechanic’s liens issues.  As a result there were a growing number of projects where Title Insurers were forced to decline to insure construction loans.  Without the protection of title insurance, Lenders were unwilling to loan, resulting in everyone suffering from projects being killed.

The Solution

The new changes provide a much needed correction and will help restore balance to the mechanics lien process.  For projects started after August 1, 2011, the new changes will allow for a Construction Loan to regain priority even if work had an early start.   This is accomplished by making mechanics’ liens relate back to and take effect as of the first preliminary notice filed in the State Construction Registry (SCR).  The new law allows any preliminary notices filed early to be withdrawn by obtaining the consent of contractors who have filed in the SCR by paying them in full for any work performed and then the contractors withdrawal of the preliminary notice.  This still ensures that the contractors are in control and have received payment before they relinquish priority.  Additionally, contractors will receive more information as the Lender will be required to file notice of the loan and borrower’s default on the loan in the SCR.

So what does this mean?

Title Insurers will insure, lenders will keep loaning, and contractors can keep being paid for their work.  A Win – Win situation all around!!

 

 

Inwest Title Employees Give Back, by Inwest Title, a Utah Title Company

Friday, July 15th, 2011

Inwest Title Employees Give Back

Several of our employees volunteer their time to community events around the state of Utah. One such event is the Christmas in July event hosted by the Salt Lake Board of REALTORS® to benefit homeless families living at the Road Home Shelter.

 

The Road Home Shelter is located in Downtown Salt Lake and offers a hand-up to families in need, many of which arrive at the shelter with only the clothes on their back. The Board of REALTORS® provides a new backpack filled with personal hygiene items, clothes, and toys for the kids from Santa Claus.

 

Mr. and Mrs. Claus arrive in a horse-drawn carriage and are greeted by the crowd of about 75 kids each year. Each child gets a chance to ride with Mrs. Claus in the carriage as well as have their picture taken with Santa Claus. After receiving their “Christmas gifts,” they are off to a fun carnival where they play games, jump in a bounce house, string beads, have their faces painted, and much more!

 

The Utah Jazz Bear shows up with his usual enthusiasm and silly string much to the delight of the children! All is ended with a big pizza bash.

 

The committee volunteers are usually exhausted, but full of pride by once again pulling off the event. It’s a humbling experience watching the children be grateful for their gifts and their day of adventure.

 

We are proud of our employees who participate in such community volunteerism.

 

For this and other information on Utah Title Companies, Utah Title & Escrow, or Title Insurance Quotes contact an Inwest Title Marketing Professional or find the office nearest you at www.inwesttitle.com.

 

 

Inwest Title Employees Give Back, by Inwest Title, a Utah Title Company

Friday, July 15th, 2011

Inwest Title Employees Give Back

Several of our employees volunteer their time to community events around the state of Utah. One such event is the Christmas in July event hosted by the Salt Lake Board of REALTORS® to benefit homeless families living at the Road Home Shelter.

 

The Road Home Shelter is located in Downtown Salt Lake and offers a hand-up to families in need, many of which arrive at the shelter with only the clothes on their back. The Board of REALTORS® provides a new backpack filled with personal hygiene items, clothes, and toys for the kids from Santa Claus.

 

Mr. and Mrs. Claus arrive in a horse-drawn carriage and are greeted by the crowd of about 75 kids each year. Each child gets a chance to ride with Mrs. Claus in the carriage as well as have their picture taken with Santa Claus. After receiving their “Christmas gifts,” they are off to a fun carnival where they play games, jump in a bounce house, string beads, have their faces painted, and much more!

 

The Utah Jazz Bear shows up with his usual enthusiasm and silly string much to the delight of the children! All is ended with a big pizza bash.

 

The committee volunteers are usually exhausted, but full of pride by once again pulling off the event. It’s a humbling experience watching the children be grateful for their gifts and their day of adventure.

 

We are proud of our employees who participate in such community volunteerism.

 

For this and other information on Utah Title Companies, Utah Title & Escrow, or Title Insurance Quotes contact an Inwest Title Marketing Professional or find the office nearest you at www.inwesttitle.com.

 

 

Southern Utah Market Data Report, by Inwest Title- a Utah Title Company

Friday, July 8th, 2011

New data is available inside the Inwest Title Southern Utah Market Data Report.  Information contained in the report include number of Land and Lots sold from May 1- May 31, 2011 as well as Year to Date figures.  The Top 10 Southwestern Utah Home Builders list is included depicting Salisbury Homes as #1 builder and Gemstone Homes coming in at #10.

Southwestern Utah Building Permit Summaries are included showing permit activity from January 1- June 22, 2011.

Washington County Average Sales Price, Number of Homes Sold and Days on Market are also available inside this report.

Find the full report at http://bit.ly/n7DX0s

For more information or for questions concerning title and escrow needs in Southern Utah, please contact our marketing staff at the Inwest Title St. George office at 435.634.5080 or visit www.inwesttitle.com