When a construction escrow is proposed, it is for the construction of a building and other improvements on a parcel of property, either commercial or residential. The Lender or Owner/Borrower will request a construction escrow. The construction escrow is a vehicle in which the Lender or Owner/Borrower obtains construction disbursing services and title insurance. There are a number of construction escrows that can be utilized depending on the coverage needed.

• Waiver Example
• Owner's Affidavit & Gap Undertaking
• Owner's Payment Authorization
• Owner's Sworn
• Construction, Partial Lien Waiver
• Material Waiver
• Construction Sworn Statement
• Construction Sworn Owner's Statement
• Owner's Letter of Reimbursement
• Letter of Reimbursement

• Construction escrow loan and disbursing agreement
• Owner's construction escrow with title insurance
• Outside interim construction escrow agreement
• Construction escrow agreement for agent providing title insurance

All escrow agreements are entered into by and among at least three parties. Most of these agreements provide for the deposit and disbursement of funds used to make construction payments for both hard site costs and soft developmental costs. Typically the parties to such agreements are: Owner/Borrower, Lender, and Escrowee. The General Contractor may also be a party to the agreement. The construction loan escrow agreement requires that the Escrowee furnish title insurance coverage to the construction Lender during the construction phase and to the permanent Lender once the construction is complete.