Mechanic's Lien Coverage - Navigating One of the Title's Most Complex Risks

Mechanic's lien coverage is among the most intricate and risk-sensitive areas of title insurance, with significant implications for both transactional structure and post-closing continued coverage. This program is designed for attorneys, title underwriters, and transactional counsel who routinely engage in commercial real estate transactions involving recent or anticipated construction activity.

This course, presented by Emmanuel Alvarez, Esq., Corporate Underwriting Counsel with FNF Family of Companies and Jerry Castro, Esq., Regional Counsel with FNF Family of Companies, offers a practical and legal framework for understanding how mechanic's lien laws affect lien priority, title insurability, and lender protections. Attendees will examine the nature and classification of lien claims, explore the availability and limitations of title insurance coverage, and learn what documentation is required to support mechanic lien underwriting decisions. Through real- world hypotheticals and documentation walkthroughs, participants will gain insights to how risk is assessed, support client objectives, and collaborate effectively with title insurers to obtain title insurance coverage.

Learning Objectives

1. Analyze how mechanic's lien statutes impact mortgage priority and title insurability in commercial transactions.
2. Recognize the types of mechanic lien claims that may arise and understand their practical implications for title coverage.
3. Evaluate available title insurance coverages and endorsements that address mechanic's lien risks for both lenders and purchasers.
4. Prepare key documentation to support underwriting approval and coverage issuance in transactions involving construction.
5. Identify potential challenges where ongoing or planned improvements may complicate title coverage or delay closing.